Its resulting carbon price internalises the climate externalities and gives consumers incentives to reduce greenhouse gas emissions. Introducing emissions trading for a significant share of the existing Effort Sharing Regulation sectors and eventually folding agricultural non-CO. emissions into the land use sector would have consequences for this Regulation. announced a commitment to make data centres climate-neutral by 2030, with actions to be put in place in 2021 to 2022. and vehicle standards have proven to be an effective policy tool. The 2030 Climate target plan. Overall, higher ambition by 2030 and the transition to climate neutrality and recovery from the COVID-19 crisis will be both a challenging task and an opportunity to build a better future for all. At the same time, to effectively contain global climate change and achieve the UN Sustainable Development Goals, all countries and notably G20 members will need to come forward with much more ambitious actions to prevent catastrophic consequences. In particular, deep renovations addressing building shells, smart digitalisation and the integration of renewable energy together need to increase strongly. The Innovation Fund will support the demonstration of breakthrough technologies at commercial scale in the energy and industry sectors. This would give an early boost to the UN’s preparations of the next meeting of the Parties of the Paris Agreement in late 2021, as well as the UN’s Decade for Action (2030 Agenda). For both sectors, in accordance with its international commitment to economy-wide action under the Paris Agreement, the EU should continue to regulate at least intra-EU aviation emissions in the EU ETS and include at least intra-EU maritime transport in the EU ETS The Commission is aware that carbon pricing does not address all barriers to the deployment of low and zero emissions solutions. There are significant risks for the sink of rising negative impacts from natural hazards such as fires and pests due to a changing climate as well as increasing economic demand for forest biomass, which also negatively affect biodiversity. Subsequently, this sector would generate carbon removals to balance remaining emissions in other sectors induced by a robust carbon removal certification system. We need to protect, conserve and enhance the EU's natural capital, and protect the health and well-being of citizens from climate- and environment-related risks and impacts and ensure an inclusive transformation based on a just transition so as to leave no one behind. At the same time, emissions trading raises revenues that can be re-invested in the economy leading to better overall economic outcomes. This will require revisiting the linear reduction factor that defines the annual reduction of the cap beyond its current level of 2.2% to guarantee that the sectors covered by the EU ETS deliver the necessary emissions reductions. emissions from agriculture and waste. As the existing EU ETS has shown, the development of a new market requires setting up functioning monitoring, reporting and verification and can benefit from transitional arrangements or a pilot period before being gradually integrated into the existing system. The Commission therefore intends to pursue such an integrated approach and will look into incorporating it in its legal proposal by next year June. Raising the EU’s ambition of greenhouse gas emissions reductions to 55% by 2030 is feasible and beneficial for the health, prosperity, and wellbeing of our citizens. If, on the other hand, the scope were to be reduced, and in case of a full transition to an EU ETS covering all fossil fuel combustion emissions, the Regulation would predominantly cover non-CO2 emissions. Hence, the Commission is looking into the options for setting up an effective carbon border adjustment mechanism, compliant with World Trade Organization rules. 21 . today, adding a 2030 target of at least 55% net greenhouse gas emissions reductions compared to 1990. A further step to enhance removals could be to integrate agriculture non-CO. greenhouse gas emissions into the land use, land use change and forestry sector and to create a new regulated sector covering agriculture, forestry and land use. The Impact Assessment already estimates that, at first sight, a significant amount of free allocation would still be available, even with the necessary strengthening of the cap. 1. The EU will continue to foster multilateral rule-based cooperation, using its green, climate and energy diplomacy – and the full spectrum of its external policy instruments to enhance the ambition level of its partners, and in particular the largest and upcoming emitters, and accelerate the global transition to climate neutrality. 27 Covering all emissions of fossil fuel combustion and integrating them in the EU ETS would present important benefits in terms of effectiveness and administrative feasibility. and the Regulation on the Governance of the Energy Union and Climate Action Increased flexibility between the Land Use, Land Use Change and Forestry Regulation and the Effort Sharing Regulation could be a way to strengthen incentives for removals in the land use sector itself. To achieve climate neutrality, a 90% reduction in overall transport emissions by 2050 compared to 1990 levels will be one main objective of the forthcoming Sustainable and Smart Mobility Strategy while addressing recovery of the sector. Both mitigation and adaptation will in turn benefit from the EU Space programmes such as Copernicus with ever improving monitoring capabilities. In total, it has been a significant net sink in the past. D��L�h����A$#X�[;�������������d�?��w� =G Pressure on natural resources, general uncertainty around global developments, and the growing climate concerns of the global population will increase pressure on all governments to act swiftly. The past five years were the warmest on record. EU international emissions from navigation and aviation have grown by more than 50% since 1990. Land Use, Land Use Change and Forestry presently removes more CO2 by storing it in biomass or in soil carbon than it releases to the atmosphere. Calculated according to the methodology as set out in Directive 2018/2001/EC. The Commission will give consideration to different options in light of an expansion of emissions trading to all fossil fuel use. What comes next is far from certain. gas used to produce electricity). This is also confirmed by the assessment of Member States’ final National Energy and Climate Plans (NECPs) under the Governance Regulation endstream endobj startxref International cooperation on maritime transport and aviation is desirable. Over time, the Commission clearly sees merit in the creation of an Agriculture, Forestry and Land Use sector with its own specific policy framework covering all emissions and removals of these sectors and to become the first sector to deliver net zero greenhouse gas emissions. This means using the EU’s strategic partnerships, external financing, trade and other cooperation platforms including through the deployment of international environmental standards and promotion of clean technologies through trade. To kick-start this and facilitate the development of appropriate supply and demand based support for zero or very low-carbon technologies and create markets for low-carbon products, EU certification systems based on the greenhouse gas performance for low-carbon basic materials and for carbon removals should be developed. The Commission’s Impact Assessment shows that a 55% cut in emissions achieved through increased use of carbon pricing, while recycling revenues to low income households can address income impacts for these households and at the same time still stimulate a switch to low-carbon technologies. The initiative will also assess: A strong decrease of consumption of animal products for nutrition could potentially reduce emissions by more than 30 million tonnes by 2030. https://www.weforum.org/agenda/2019/01/why-digitalization-is-the-key-to-exponential-climate-action/. However, some transport sectors heavily depend on high energy density fuels, such as the aviation and maritime. The EU will seek mutually beneficial alliances and ensure an international level playing field around new sustainable technologies, such as renewable hydrogen, advanced solar and wind, batteries, and carbon capture, as well as around critical raw materials for these technologies, such as rare earths. In this context, the Commission will present dedicated guidelines in the first quarter of 2021. . The higher ambition level will also require to better promote energy efficiency wherever cost-effective in all areas of the entire energy system as well as in all relevant sectors where activity affects demand for energy, such as transport and the agriculture sectors. Append an asterisk (, Other sites managed by the Publications Office, Addressing the Climate crisis with increased resolve, The President of the Commission has made the European Green Deal. This would benefit from the detailed analysis and elaboration of policies implementing the biodiversity and forestry strategies, which in principle will drive some of the additional actions reducing emissions in the sector. Introducing emissions trading for a significant share of the existing Effort Sharing Regulation sectors and eventually folding agricultural non-CO2 emissions into the land use sector would have consequences for this Regulation. In the absence of comparable increases in ambition by our partners, as the EU increases its climate ambition, the Commission will propose a carbon border adjustment mechanism , for selected sectors, to reduce the risk of carbon leakage as a an alternative to measures currently in place to address that same risk .. 15th April 2020. Similarly, industry may see emissions reductions of up to around 25% by 2030 compared to 2015. We must therefore devise policies, earmark budgets, and propose different and innovative ways to organise the greening of houses and mobility, whilst helping vulnerable social groups. It will focus on the worst performing buildings and tackle the energy poverty as well as on public buildings, notably schools, hospitals and care facilities. The Renewable Energy Directive (RED II) Energy legislation and policies are also essential instruments contributing to the achievement of this target with the 2030 EU binding targets of at least 32% of renewable energy sources in the EU’s energy mix and at least 32.5% energy efficiency. Ambitious CO2 emissions standards for cars and vans will be needed to ensure a clear pathway towards zero emissions mobility. Modern low-temperature district heating systems should be promoted, as they can connect local demand with renewable and waste energy sources, as well as the wider electric and gas grid in order to optimise supply and demand across energy carriers. To this end, the Commission will launch the European Climate Pact to give everyone a voice and space to design climate action, share information, launch grassroots activities and showcase solutions that others can follow. The Commission will reflect upon these options when coming forward with a legislative proposal to update the Land Use, Land Use Change and Forestry Regulation and the Effort Sharing Regulation next year. The only responsible course of action is therefore to move now when we still have the freedom to choose how, instead of inching forward until it may be too late. The Commission will underpin these ambitions with policies fostering a just transition, research and development and sustainable finance and ensure an effective use of the Union’s budget and recovery funds to support the transition. The possibility of establishing mandatory requirements for the worst performing buildings and gradually tightening the minimum energy performance requirements will also considered as a means to ensure a suitable minimum pace for the improvement of the building stock. Equally important, enhancing ambition will deliver very important benefits alongside the fight against climate change, like a reduced fossil fuel import bill, higher energy security, reduced air pollution, better health, improved biodiversity, lower dependence on imported raw materials, and less hazards from waste. This work has to look beyond 2030. The Impact Assessment identifies a range of 35.5 % - 36.7 depending on the overall design of policy measures underpinning the new 2030 target. Secure supply of batteries in line with the strategic action plan for batteries under the European Battery Alliance will be indispensable for decarbonising the EU’s energy system by enabling integration of increasing amounts of renewable energy, and our transport sector by catalysing the shift to electric vehciles. The Land Use, Land Use Change and Forestry Regulation currently requires EU Member States to maintain their natural carbon sink according to existing land use practices. Interim Climate Actions 2021 will be used to drive continued delivery of climate action across all Government Departments and bodies, while the Climate Action Plan 2021 is being prepared for publication this Summer. DISCLAIMER: All opinions in this column reflect the views of the author(s), not of EURACTIV Media network. If, on one hand, the scope of the Regulation were to be maintained creating overlap between the sectors covered by the EU ETS and the Effort Sharing Regulation, this would provide an incentive for Member States to take subsidiary action strengthening the regulatory framework for sectors such as buildings and road transport. R� If all other objectives of the Regulation were sufficiently targeted by other legislative instruments, the Regulation could even be repealed as a whole in the future. Its role and purpose would be further reduced in case of a move of agriculture non-CO2 emissions towards an agriculture and land use sector. 24 There’s good news and bad news about Canada’s 2030 climate target. The European Commission is raising its targets for decarbonisation in the EU by 2030 through the implementation of the Climate Target Plan (CTP). An ambition increase in the Land use, Land use change and Forestry sector beyond the current requirements needs to be assessed carefully given the diverse situation across Member States. 2030 Climate Target Plan — EUbusiness.com | EU news, business and politics The European Commission presented on 17 September its plan to reduce EU greenhouse gas emissions by at least 55% by 2030, compared to 1990 levels. 26 . For road transport, CO2 and vehicle standards have proven to be an effective policy tool. resilient and resource-efficient economy as well as through the International Platform on Sustainable Finance with our international partners will be instrumental. 14 The Commission will look into capacity building schemes to implement citizen-driven renewable energy communities financed by the EU and self-consumption models enabling higher consumer uptake and faster development of decentralised renewable energy technologies. A more ambitious climate target is likely to be more challenging in Member States and regions with a higher share of fossil fuels in the energy mix, higher greenhouse gas emissions, energy intensity and lower GDP per capita. This will depend on the revenue allocation between the EU and national level and on its well-targeted use (e.g. Promoted content. An EU carbon farming initiative under the Climate Pact will demonstrate and promote such new business models. This is a substantial increase compared to the existing target upwards from the previous target of at least 40%. and the Energy Efficiency Directive . Its resulting carbon price internalises the climate externalities and gives consumers incentives to reduce greenhouse gas emissions. Corresponding targets need to be set in the Effort Sharing Regulation and under the EU ETS, to ensure that in total, at least the economy wide 2030 greenhouse gas emissions reduction target of 55% will be met. Targeted use of these funds can trigger significant private sector investments. To achieve this, it will propose a cut in greenhouse gas emissions of at least 50% to 55% for 2030 from 1990 levels, rather than at least 40% currently, including an amendment to the recently proposed European Climate Law. This means using the EU’s strategic partnerships, external financing, trade and other cooperation platforms including through the deployment of international environmental standards and promotion of clean technologies through trade. Glass for Europe is the trade association for Europe's flat glass sector. Previews a set of actions required across all sectors of the economy and the launch of revisions of the key legislative instruments to achieve this increased ambition. . This will be the starting point of the pathway between 2030 and 2050 for achieving climate neutrality and allow monitoring progress towards net zero greenhouse gas emissions by 2050 in a fully coherent manner. The European Commission's 2030 climate target plan The European Commission is proposing 2030 emissions reduction target from the to raise the current 40 % to at least 55 %, compared with 1990 levels. A further step to enhance removals could be to integrate agriculture non-CO2 greenhouse gas emissions into the land use, land use change and forestry sector and to create a new regulated sector covering agriculture, forestry and land use. emissions of methane, nitrous oxide and so-called F-gases represent almost 20% of the EU’s greenhouse gas emissions. Agriculture, Land Use, Land Use Change and Forestry sector. If all other objectives of the Regulation were sufficiently targeted by other legislative instruments, the Regulation could even be repealed as a whole in the future. EU citizens, businesses and social partners require increased certainty and predictability on the pathway towards climate neutrality. The impacts of global warming are beyond dispute, with droughts, storms, and other weather extremes on the rise. endstream endobj 691 0 obj <>/Metadata 36 0 R/Outlines 52 0 R/PageLayout/OneColumn/Pages 688 0 R/StructTreeRoot 77 0 R/Type/Catalog>> endobj 692 0 obj <>/ExtGState<>/Font<>/XObject<>>>/Rotate 0/StructParents 0/Tabs/S/Type/Page>> endobj 693 0 obj <>stream In regions where carbon-intensive industries are currently of greater importance, focused policies and investments are needed, supported by the Just Transition Mechanism. In December 2020, Unilever’s Board announced its intention to put our Climate Transition Action Plan (PDF | 23MB) before shareholders and seek a non-binding, advisory vote on our ambitious emissions reduction targets – zero emissions from our operations by 2030, and net zero across our value chain by 2039 – and our plans to reach them. By 2030, this has to increase to around 24% through further development and deployment of electric vehicles, advanced biofuels and other renewable and low carbon fuels as part of a holistic and integrated approach. Not all Member States, sectors and households start the transition towards climate-neutrality from the same point or have the same capacity to respond to the challenges of the transition. With the 2030 Climate Target Plan, the Commission proposes to raise the EU's ambition on reducing greenhouse gas emissions to at least 55% below 1990 levels by 2030. Global average temperature increased by 1.1°C above pre-industrial levels by 2019. Modernisation Fund and Innovation Fund). EU’s 2030 climate target plan may have overestimated transition costs -report. The Land Use, Land Use Change and Forestry sector’s emissions and removals will be fully integrated into the proposed 2030 EU greenhouse gas target as reported under the UNFCCC inventory. The upcoming revision of the Alternative Fuels Infrastructure Directive is a key initiative in this regard. An increased renewables target will provide the necessary predictability and investment certainty for further renewable energy deployment across all sectors. Considering the need to maintain strong incentives and accountability for Member States to ensure action at national level, the Commission will use the upcoming impact assessment for both the review of the Emissions Trading System and the Effort Sharing Regulation to further consult the public on the role of the Effort Sharing Regulation and the related Governance Regulation. The EU aims to become climate-neutral (net zero greenhouse gas emissions) by 2050. By June 2021, the Commission will therefore revisit and strengthen the CO2 standards for cars and vans for 2030. The EU should continue leading by example, but it must also use its leverage to promote a global change in economic incentives in support of the low-carbon transition taking into account changing geopolitical and geoeconomic realities. The EU has a comprehensive framework for a wide range of energy efficiency measures across different sectors, . To achieve this, both the climate legislation as well as the energy policies need to be reviewed to deliver this ambition increase. However, over recent years the EU’s sink has come under pressure from increased economic use and the adverse effects of climate change. Top climate experts, including the authors of the Fourth National Climate Assessment and the Intergovernmental Panel On Climate Change Special Report, have all concluded that human activities are estimated to have caused an approximate 1.0°C rise in the Earth’s global temperature to date. The forthcoming Renovation Wave will therefore launch a set of actions to increase the depth and the rate of renovations at single building and at district level, switch fuels towards renewable heating solutions, diffuse the most efficient products and appliances, uptake smart systems and building-related infrastructure for charging e-vehicles, and improve the building envelope (insulation and windows). The sector will have to provide for food, feed and materials for a growing world population in a climate-neutral economy. Many other EU policies have been put in place, or are being reoriented to contribute to the ‘do no harm’ principle and the transition to climate neutrality. Both the European Industrial Strategy. This includes improved and enforced forest protection and more sustainable forest management as well as sustainable re- and afforestation and improved soil management including through the restoration of wetlands, peatlands and degraded land in line with the Biodiversity Strategy, and contributing to its aims. The Climate Change (Emissions Reduction Targets) (Scotland) Act 2019 received Royal Assent on 31 October 2019. The past five years were the warmest on record. For aviation, the Commission will propose to reduce the free allocation of allowances, increasing the effectiveness of the carbon price signal in this sector, while taking into account other policy measures such as energy taxation and the ReFuelEU initiatives. Building on the existing framework and the long-term renovation strategies, other measures will be identified to remove the main barriers to building renovation and reinforce the pull factors for faster and deeper renovations. The direction should be to increase the use of sustainably produced biomass and minimise the use of whole trees and food and feed-based crops to produce energy. This will be the starting point for a smooth pathway for the EU to become climate-neutral by 2050. For aviation, the application of the EU ETS is currently suspended in relation to flights to countries outside the European Economic Area to allow for the development of corresponding international instruments. Alongside government policies and regulation, citizens, communities and organisations have their part to play. Its role and purpose would be further reduced in case of a move of agriculture non-CO. emissions towards an agriculture and land use sector. According to the Climate Target Plan, investment in the energy system, including transport, needs to increase over the period 2021-2030 by an additional ?350 billion on average each year (compared to 2011-2020) in order to achieve 55% reductions by 2030. 13 At the same time, the CO2 emissions performance standards for cars are the main driver to ensure the supply of modern and innovative clean vehicles, including electric cars. The EU’s position as the world’s largest trading block provides significant opportunities in this respect. International instruments negotiated or under negotiation in the International Maritime Organization (IMO) and the International Civil Aviation Organization (ICAO), such as the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA),should promote effective action in this context. The Impact Assessment indicates that to reach the overall climate neutrality target in 2050, nearly all cars on the roads must be zero emissions by that time. The Commission will also assess in the coming months what would be required in practice for this sector to contribute to achieving climate neutrality by 2050 and at what point in time internal combustion engines in cars should stop coming to the market. As an advanced economy, with a proven track record in successful implementation of ambitious climate policy, the EU has the possibility – as well as the moral obligation – to influence global greenhouse gas emissions trends and increase resource efficiency, within and beyond the international climate negotiations. As set out in the Communication on an EU-wide assessment of National Energy and Climate Plans, , Member States have been ambitious when developing their national plans for the first time. Furthermore as the EU is increasing its climate ambition, the Commission is working on introducing a carbon border adjustment mechanism in certain sectors to address the risk of carbon leakage. This process should pave the way for their subsequent rapid adoption, and leave sufficient lead-time for all actors to achieve the increased 2030 climate and energy ambition. Its Just Transition Fund (the first pillar of the Just Transition Mechanism) addresses head on the acceleration of the transition in coal, peat, oil shale and carbon-intensive regions. 12 Here it is necessary to consider the other two changes in the climate policy architecture proposed by the Commission in its 2030 Climate Target Plan. Therefore, the Commission is amending its proposal for the first European Climate Law Therefore, the Commission is amending its proposal for the first European Climate Law. Next to extending the use of emissions trading also the revision of Energy Taxation Directive could contribute to putting a price on carbon and reducing emissions. It will remain essential to address distributional concerns between Member States in order to ensure a fair transition. change of fuel used for electricity generation), and a strong signal for low carbon investments, and thus contributes decisively to the deployment of renewable energy and energy efficiency technologies. It would also provide momentum for next year’s multilateral discussions in the context of the G7 and the G20, which will be presided by the UK and Italy, respectively. Such a target would be impossible to meet from technical mitigation options in agriculture and would require a dramatic cessation of much agricultural activity unless other flexibilities were given.
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