EU proposes radical ‘Fit for 55’ climate action plan
14 July 2021
The European Commission unveiled a proposed climate package, dubbed ‘Fit for 55’, that sets a goal to reduce carbon emissions by 55% by 2030, compared to 1990 levels. From 1990 to 2019 the EU reduced emissions by 24%. Under today’s proposal, emission would have to decline by another 31% in just 9 years.
The proposed climate action plan includes a number of new and revised regulations, including:
- Changes to the EU Emissions Trading System (ETS), including a lower emissions cap, increased rates of annual reductions, phasing out free emission allowances for aviation, and including shipping emissions for the first time in the EU ETS.
- Strengthened emission reduction targets for each member state (Effort Sharing Regulation) for buildings, road and domestic maritime transport, agriculture, waste and small industries, as well as new targets for carbon removals by natural sinks such as forests (Regulation on Land Use, Forestry and Agriculture).
- A more ambitious binding annual target (Energy Efficiency Directive) for reducing energy use at the EU level, and an increased target (Renewable Energy Directive) to produce 40% of EU’s energy from renewable sources by 2030.
- Stronger CO2 emissions standards for cars and vans—average emissions of new cars would have 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 would be zero tailpipe emission.
- To ensure that drivers are able to charge or fuel their vehicles at a reliable network across Europe, the revised Alternative Fuels Infrastructure Regulation would require member states to expand charging capacity in line with zero-emission car sales, and to install charging and fueling points at regular intervals on major highways: every 60 km for electric charging and every 150 km for hydrogen refueling.
- Aviation and maritime fuels—The Alternative Fuels Infrastructure Regulation would require that aircraft and ships have access to clean electricity supply in major ports and airports. The ReFuelEU Aviation Initiative would 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 (e-fuels). The FuelEU Maritime Initiative would set a maximum limit on the GHG content of energy used by ships calling at European ports to stimulate the uptake of sustainable maritime fuels and zero-emission technologies.
- A new Carbon Border Adjustment Mechanism would put a carbon price on imported products (including steel and concrete) to ensure that ambitious climate action in Europe does not lead to ‘carbon leakage’.
The scale of the plan is unprecedented. It severely restricts the (fossil) energy input to the economic system, and has a potential to destabilize the European economy. By putting an upward pressure on energy price, it would have an impact on the life and wellbeing of every citizen of Europe—particularly on the less affluent social groups.
BBC’s Matt McGraph said in his editorial on the proposal: The Commission is betting that instead of hordes of yellow-vest protesters taking to the streets, citizens will be willing to pay a price for cleaner air, lower emissions, and more sustainable lifestyles. The rest of the world will watch this huge gamble with interest.
The ‘Fit for 55’ proposals will require approval by EU member states and the European parliament, a process that could take as long as two years. Opposition can be expected from eastern member states that rely heavily on coal, as well as from some industries, including airlines and vehicle manufacturers.
Source: European Commission