Kadri Simson – Photo © European Union 2021
(BRUSSELS) – The EU Commission set out a set of climate, energy, transport and taxation policies Wednesday, a wide-ranging package to set Europe’s economy on course to a 55% carbon emissions reduction by 2030.
Achieving these emission reductions is crucial to Europe becoming the world’s first climate-neutral continent by 2050, says the EU executive. “To achieve climate-neutrality by 2050, we need to turn the renewables evolution into a revolution and make sure no energy is wasted along the way,” said Energy Commissioner Kadri Simson: “Today’s proposals set more ambitious targets, remove barriers and add incentives so that we move even faster towards a net-zero energy system.”
The measures combine: application of emissions trading to new sectors and a tightening of the existing EU Emissions Trading System; increased use of renewable energy; greater energy efficiency; a faster roll-out of low emission transport modes and the infrastructure and fuels to support them; an alignment of taxation policies with the European Green Deal objectives; measures to prevent carbon leakage; and tools to preserve and grow our natural carbon sinks.
The Commission proposes to lower the overall emission cap of the EU Emissions Trading System further and increase its annual rate of reduction. It also proposes to phase out free emission allowances for aviation and align with the global Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) and to include shipping emissions for the first time in the EU ETS.
A separate new emissions trading system is set up for fuel distribution for road transport and buildings.
Member States are asked to spend the entirety of their emissions trading revenues on climate and energy-related projects, with some revenues be directed towards addressing the possible social impact on vulnerable households, micro-enterprises and transport users.
A Regulation on Land Use, Forestry and Agriculture sets an overall EU target for carbon removals by natural sinks, equivalent to 310 million tons of CO2 emissions by 2030. By 2035, the EU should aim to reach climate neutrality in the land use, forestry and agriculture sectors, including also agricultural non-CO2 emissions, such as those from fertiliser use and livestock. The EU Forest Strategy sets out a plan to plant three billion trees across Europe by 2030.
The Renewable Energy Directive will set an increased target to produce 40% of our energy from renewable sources by 2030.
The Energy Efficiency Directive will set a more ambitious binding annual target for reducing energy use at EU level.
Stronger CO2 emissions standards for cars and vans will accelerate the transition to zero-emission mobility by requiring average emissions of new cars to come down by 55% from 2030 and 100% from 2035 compared to 2021 levels. As a result, all new cars registered as of 2035 will be zero-emission.
A revised Alternative Fuels Infrastructure Regulation will require Member States to expand charging capacity in line with zero-emission car sales, and to install charging and fuelling points at regular intervals on major highways: every 60 kilometres for electric charging and every 150 kilometres for hydrogen refuelling.
The Alternative Fuels Infrastructure Regulation requires that aircraft and ships have access to clean electricity supply in major ports and airports. The ReFuelEU Aviation Initiative will oblige fuel suppliers to blend increasing levels of sustainable aviation fuels in jet fuel taken on-board at EU airports, including synthetic low carbon fuels, known as e-fuels.
A revision of the Energy Taxation Directive proposes to align the taxation of energy products with EU energy and climate policies, promoting clean technologies and removing outdated exemptions and reduced rates that currently encourage the use of fossil fuels.
Finally, a new Carbon Border Adjustment Mechanism will put a carbon price on imports of a targeted selection of products to ensure that ambitious climate action in Europe does not lead to ‘carbon leakage’.
Communication: fit for 55 delivering EU’s 2030 climate targets
Website Delivering the European Green Deal (including legislative proposals)
Q&A on EU Emissions Trading System
Q&A on The Effort sharing and Land-use, Forestry and Agriculture Regulations
Q&A on Making our Energy Systems fit for our Climate Targets
Q&A on the Carbon Border Adjustment Mechanism
