Released July 26, 2021 | GALWAY, IRELAND
en
Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The European Union (EU) has proposed a game-changing set of climate change legislation to ensure the region achieves climate neutrality by 2050.
The 12 proposed changes will greatly affect many sectors, from transport and travel to refining and power generation, reshaping the kinds of projects that future investors will support. In addition to a tax on jet fuel, Europe wants to end the sale of petrol and diesel cars in the next 20 years and will get there by tightening emissions laws and greatly expanding the infrastructure to support electric and hydrogen vehicles. Renewable energy targets will be increased as will ramping up the energy efficiency of buildings, while a carbon border tax will be applied to imports of a number of products including iron and steel, cement, fertiliser, aluminium and electricity generation. Money raised by emissions taxes will be used to fund the proposals across the region's countries.
In the midterm, the so-called "Fit for 55" legislation changes will aim to achieve a reduction in net greenhouse gas emissions by at least 55% by 2030, compared to 1990 levels. The European Commission has already pledged to spend at least 30% of the EU's 1.8 trillion euro (US$2.1 trillion) long-term budget on climate-related measures. The ambitious proposals, and how to fund them, will be negotiated with the region's 27 member states over the coming months with push-back expected from nation's with weaker economies and those more heavily reliant on fossil-fuels.
"The fossil fuel economy has reached its limits," said President of the European Commission Ursula von der Leyen. "We want to leave the next generation a healthy planet as well as good jobs and growth that does not hurt our nature. The European Green Deal is our growth strategy that is moving towards a decarbonised economy. Europe was the first continent to declare to be climate neutral in 2050, and now we are the very first ones to put a concrete roadmap on the table. Europe walks the talk on climate policies through innovation, investment and social compensation."
Commissioner for Economy, Paolo Gentiloni, added: "We are updating our two-decades-old energy taxation rules to encourage the use of greener fuels and reduce harmful energy tax competition. And we are proposing a carbon border adjustment mechanism that will align the carbon price on imports with that applicable within the EU. In full respect of our WTO commitments, this will ensure that our climate ambition is not undermined by foreign firms subject to more lax environmental requirements. It will also encourage greener standards outside our borders. This is the ultimate now or never moment. With every passing year the terrible reality of climate change becomes more apparent: today we confirm our determination to act before it is really too late."
Energy production and use accounts for 75% of EU emissions. The Renewable Energy Directive will set an increased target to produce 40% of its energy from renewable sources by 2030. All member states will contribute to this goal, and specific targets are proposed for renewable energy use in transport, heating and cooling, buildings and industry.
In transport, the Commission is proposing 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 Emissions Trading Scheme (ETS). A separate new emissions trading system will be set up for fuel distribution for road transport and buildings. The EU stated: "Aviation and maritime fuels cause significant pollution and also require dedicated action to complement emissions trading." 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. Similarly, the FuelEU Maritime Initiative will stimulate the uptake of sustainable maritime fuels and zero-emission technologies by setting a maximum limit on the greenhouse gas content of energy used by ships calling at European ports.
On the roads, the EU stated that a "combination of measures is required to tackle rising emissions in road transport to complement emissions trading." 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. To support this shift to electric, hydrogen and hybrid vehicles, member states will be required 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 refueling.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
The 12 proposed changes will greatly affect many sectors, from transport and travel to refining and power generation, reshaping the kinds of projects that future investors will support. In addition to a tax on jet fuel, Europe wants to end the sale of petrol and diesel cars in the next 20 years and will get there by tightening emissions laws and greatly expanding the infrastructure to support electric and hydrogen vehicles. Renewable energy targets will be increased as will ramping up the energy efficiency of buildings, while a carbon border tax will be applied to imports of a number of products including iron and steel, cement, fertiliser, aluminium and electricity generation. Money raised by emissions taxes will be used to fund the proposals across the region's countries.
In the midterm, the so-called "Fit for 55" legislation changes will aim to achieve a reduction in net greenhouse gas emissions by at least 55% by 2030, compared to 1990 levels. The European Commission has already pledged to spend at least 30% of the EU's 1.8 trillion euro (US$2.1 trillion) long-term budget on climate-related measures. The ambitious proposals, and how to fund them, will be negotiated with the region's 27 member states over the coming months with push-back expected from nation's with weaker economies and those more heavily reliant on fossil-fuels.
"The fossil fuel economy has reached its limits," said President of the European Commission Ursula von der Leyen. "We want to leave the next generation a healthy planet as well as good jobs and growth that does not hurt our nature. The European Green Deal is our growth strategy that is moving towards a decarbonised economy. Europe was the first continent to declare to be climate neutral in 2050, and now we are the very first ones to put a concrete roadmap on the table. Europe walks the talk on climate policies through innovation, investment and social compensation."
Commissioner for Economy, Paolo Gentiloni, added: "We are updating our two-decades-old energy taxation rules to encourage the use of greener fuels and reduce harmful energy tax competition. And we are proposing a carbon border adjustment mechanism that will align the carbon price on imports with that applicable within the EU. In full respect of our WTO commitments, this will ensure that our climate ambition is not undermined by foreign firms subject to more lax environmental requirements. It will also encourage greener standards outside our borders. This is the ultimate now or never moment. With every passing year the terrible reality of climate change becomes more apparent: today we confirm our determination to act before it is really too late."
Energy production and use accounts for 75% of EU emissions. The Renewable Energy Directive will set an increased target to produce 40% of its energy from renewable sources by 2030. All member states will contribute to this goal, and specific targets are proposed for renewable energy use in transport, heating and cooling, buildings and industry.
In transport, the Commission is proposing 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 Emissions Trading Scheme (ETS). A separate new emissions trading system will be set up for fuel distribution for road transport and buildings. The EU stated: "Aviation and maritime fuels cause significant pollution and also require dedicated action to complement emissions trading." 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. Similarly, the FuelEU Maritime Initiative will stimulate the uptake of sustainable maritime fuels and zero-emission technologies by setting a maximum limit on the greenhouse gas content of energy used by ships calling at European ports.
On the roads, the EU stated that a "combination of measures is required to tackle rising emissions in road transport to complement emissions trading." 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. To support this shift to electric, hydrogen and hybrid vehicles, member states will be required 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 refueling.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
