On 11 December 2019, the European Commission (“the Commission”) presented the European Green Deal, setting the goal of making Europe the first climate-neutral continent by 2050. In this context, the European Climate Law providing the intermediate target of reducing net greenhouse gas emissions by at least 55% by 2030 (compared to 1990 levels) was adopted and entered into force in July 2021.
It is in the context of these objectives that the Commission, on 14 July 2021, adopted a new package of proposals “to make the EU’s climate, energy, land use, transport and taxation policies fit for reducing net greenhouse gas emissions by at least 55% by 2030”. This package includes a comprehensive and interconnected set of proposals that are intended to enable the necessary acceleration of greenhouse gas emission reduction in the coming decade.
First, for the EU Emissions Trading System (“ETS”), the Commission is now proposing a revised version of the Directive to lower the overall emission cap further and increase its annual rate of reduction. Furthermore, it proposes that Member States should spend the entirety of their emissions trading revenues on climate and energy-related projects.
Second, the proposal regarding the Effort Sharing Regulation assigns strengthened emissions reduction targets to each Member State for buildings, road and domestic maritime transport, etc. This proposal recognises different starting points and capacities for each Member State, as the targets are based on their GDP per capita.
Third, the proposal regarding the Regulation on land use, forestry and agriculture sets an overall EU target for carbon removals by natural sinks and it recalls that Member States share responsibility for removing carbon from the atmosphere. Accordingly, the EU Forest Strategy aims to improve the quality, quantity and resilience of EU forests. It sets out a plan to plant 33 billion trees across Europe by 2030.
Fourth, the Energy Efficiency Directive will set up a more ambitious binding annual target for reducing energy use at EU level, which i.e. requires the public sector to renovate 3% of its buildings each year to reduce the energy use.
Fifth, another important measure provided by the set of proposals is that it aims to accelerate the transition to zero emissions of new cars to reduce by 55% from 2030 and 100% from 2035 compared to 2021 levels. In its set of proposals, the Commission also provides for reduction of emissions and an increase in the use of sustainable fuels for aircraft and ships.
Finally, a new Carbon Border Adjustment Mechanism will put a carbon price on imports of a selection of products “to ensure that European emission reductions contribute to a global emissions decline instead of pushing carbon-intensive production outside Europe”.
In addition, a new Social Climate Fund is proposed “to provide dedicated funding to Member States to help citizens finance investments in energy efficiency, new heating and cooling systems and cleaner mobility”.
Before its adoption, this new set of proposals will now undergo discussions within the Council of the EU and the European Parliament. In this context, in her State of the Union address on 15 September 2021, the president of the Commission Ursula Von der Leyen insisted on these environmental objectives and indicated that “the COP26 in Glasgow will be a moment of truth for the global community”.
Please contact Pierre de Bandt, Jeroen Dewispelaere or Raluca Gherghinaru for further information about this initiative and/or for general legal advice relating to environmental law.