What has Europe decided on low-emission energy and transport
The European Commission today presented the “Fit for 55” plan, containing the concrete measures that should allow the achievement of the 2030 emissions target. All details
Today the European Commission presented a plan to combat climate change that has the ambition to revolutionize every aspect of the European Union economy, from domestic heating to mobility to industry.
THE "FIT FOR 55" PLAN
The plan is called "Fit for 55", that is "Ready for 55": the reference is to the minimum share of greenhouse gas emissions reduction – 55 percent less, in fact – that the block will have to achieve overall by 2030 , compared to 1990 levels. This is a sort of intermediate step towards the ultimate goal, set for 2050, ie the net elimination of emissions (the so-called “carbon neutrality”).
To achieve these climate targets, a profound rethinking of the way in which energy is generated and consumed is necessary, of how certain production processes and certain vehicles are powered, and also of the lifestyle habits of individual citizens.
Frans Timmermans, Vice President of the European Commission in charge of climate policy, spoke of the "industrial revolution".
DIFFICULTY OF IMPLEMENTATION
The climate package presented today will have to be implemented, and it is likely – Bloomberg points out – that it will undergo changes following negotiations with Member States (which have different starting situations and geographical characteristics).
Timmermans recognizes that the process will be "tremendously difficult", just as it will be difficult to ensure that the energy transition from fossil sources to renewables is fair, and that it does not burden the social groups most exposed to the consequences of change.
Certainly, at least for the moment, no other major world economy – neither the United States nor China – has come up with an ambitious plan like the European one.
THE EXPANSION OF THE ETS SYSTEM
The Brussels plan is primarily aimed at expanding the ETS, which is the system for trading emissions allowances. The European Union has created a market that guarantees companies a certain number of "pollution" quotas per year, which they must not exceed: this number decreases over time, and less polluting companies can sell their unused quotas to those which would otherwise exceed the maximum threshold.
The system aims to encourage the transition to clean energy through the progressive increase in the price of carbon. The price has actually reached very high levels, with negative repercussions on the cost of electricity and gas bills for users.
The European Union now wants to broaden the scope of the ETS to include previously excluded sectors, such as transport and domestic heating.
THE CARBON TAX AT THE BORDER
The Fit for 55 package also includes a carbon adjustment mechanism at the border. In essence, it is a carbon tax applied at the borders of the European Union on certain goods – such as steel or aluminum – coming from those external countries where companies do not have to comply with equally stringent emission rules.
The mechanism serves two things: to protect European companies from foreign competition from unfair "climate competition", and to make it inconvenient to relocate European companies to countries with more permissive climate regulations. The measure does not appeal to some countries such as China and Russia, which consider it infringing the rules of the World Trade Organization: it is likely that disputes may arise.
OTHER TRANSPORT MEASURES
Among other things, the European plan includes a tax on fuel for air and sea transport and incentives for the electrification of transport. A final date is also set – 2035 – after which it will no longer be possible to sell new cars running on petrol or diesel.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/energia/unione-europea-piano-fit-for-55/ on Wed, 14 Jul 2021 14:32:20 +0000.