Dossier

The EU's Fit-for-55 package

The European Green Deal's fitness test

On 14 July 2021, the European Commission presented its proposals for implementing the EU Climate Law - the so-called “Fit-for-55” package. This will be the starting signal for one of the most important EU debates of the next years: how can the EU reduce its greenhouse gas emissions by 55% by 2030 and how can it become climate neutral by 2050?

Analyses on the #Fitfor55 package

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CO2 performance standards and alternative fuels infrastructure proposals: the right direction, but lacking short-term ambition

Analysis
The European Commission's Fit-for-55 package proposal to go to 100% zero emission car sales from 2035 shows a serious commitment for reaching carbon neutrality by 2050, and will put European industry in the driving seat to dominate the new global electric vehicle (EV) market. While this move could democratise the purchase of EVs, policy-makers need to take a small extra step to ensure early build up of EVs to drive cost reductions and fully guarantee that chargers are available in the right locations.
By Alex Keynes

The Fit-for-55 package includes the following initiatives:

  • Revision of the EU Emissions Trading System (ETS), including maritime, aviation and CORSIA as well as a proposal for ETS as own resource
  • Carbon Border Adjustment Mechanism (CBAM) and a proposal for CBAM as own resource
  • Effort Sharing Regulation (ESR)
  • Revision of the Energy Tax Directive
  • Amendment to the Renewable Energy Directive to implement the ambition of the new 2030 climate target (RED)
  • Amendment of the Energy Efficiency Directive to implement the ambition of the new 2030 climate target (EED)
  • Revision of the Regulation on the inclusion of greenhouse gas emissions and removals from land use, land use change and forestry (LULUCF)
  • Revision of the Directive on deployment of alternative fuels infrastructure
  • Revision of the Regulation setting CO₂ emission performance standards for new passenger cars and for new light commercial vehicles

The proposal for a new social climate fund was an addition to the initial list of initiatives for summer 2021. The following initiatives are announced for fourth quarter (Q4) of 2021:

  • Reducing methane emissions in the energy sector (originally expected in Q2-2021)
  • Revision of the energy performance of Buildings Directive (EPBD)
  • Revision of the Third Energy Package for gas (Directive 2009/73/EU and Regulation 715/2009/EU) to regulate competitive decarbonised gas markets
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The revision of the Energy Taxation Directive could underpin a fair and green tax reform in Europe

Analysis
Tax systems across the EU are currently neither fair nor green. The burden of taxation has been steadily shifting in recent decades from corporate profits and personal wealth to labour income, especially of lower-income earners, helping to drive growing inequality across the EU. And with men disproportionately represented among the EU’s wealthiest citizens, the system helps underpin gender inequality too.
By Tim Gore
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The European Green Deal's fitness test – Will the EU’s Fit-for-55 package ensure reaching the climate goal?

Analysis
On 14 July 2021, the European Commission will present its proposals for implementing the EU Climate Law - the so-called “Fit-for-55” package. This will be the starting signal for one of the most important EU debates of the next years: how can the EU reduce its greenhouse gas emissions by 55% by 2030 and how can it become climate neutral by 2050?
By Lisa Tostado and Martin Keim

Recent events

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Methane Leakages from Oil and Gas Across Europe | COP26

Event recording
Methane is the second biggest contributor to the climate crisis, responsible for about 0.5°C of human-caused global heating so far. One of the main emitters of the powerful greenhouse gas is the oil and gas sector, where methane can leak across the whole supply chain – during extraction, transport, storage and use. The extent to which such leakages occur is only vaguely known, with companies often reporting emissions only on the basis of calculations as opposed to actual measurements. Where measurements are being done, they often show higher emission rates than previously anticipated.
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EU methane legislation – How to reduce the unabated by 2030

Event recording
Reducing methane emissions from oil and gas production to consumption is key in preventing radiative forcing. Shutting down the most immediate unabated emissions of the greenhouse gas methane can be done at no net cost and it has enormous potential in terms of climate policy. Climate tipping points in relation to global warming must be avoided. Yet, the oil and gas industry does not exhaust all options to reduce methane leakages, partly due to a lack of regulation. The EU is planning to deliver binding legislation to this end, covering also gas imports. This event presented concrete policy proposals for a methane charge and a performance standard.
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Methane emissions from oil and gas: status quo and perspectives on regulation

Event recording
Methane emissions from the oil and gas sector are a major contributing factor to climate change as the key component of fossil gas has a global warming potential 86 times higher than CO2. Regulating methane emissions in the oil and gas upstream supply chain as well as coal sector is therefore a powerful tool and urgent for mitigating GHG emissions and meeting climate targets. It is important that upcoming EU legislation be binding and apply to the entire supply chain of the oil, gas and coal industries, including domestic sources and gas imports from third countries. Only if all measures apply to EU imports, wholesale and retail, the impact of methane emissions on the global climate can truly be addressed.

Related content

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European Green Deal: Integrate gender and intersectional approach into green budgeting and taxation

Report chapter
Green budgets refer to tools that aim to achieve environmental and climate objectives by analysing the environmental impacts of budgetary and fiscal policy choices. Budgeting can therefore be a tool to mainstream gender equality and environmental objectives at the same time. While taxation can also enhance gender equality and incentivise a green transition, this chapter  focuses on the budget side due to the revenue structure of the European Union (EU), in the context of the European Green Deal, the EU Budget 2021-2027 and the Recovery and Resilience Facility.
By Lisa Tostado and Katy Wiese
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Sustainably recovering from the pandemic: The European Green Deal – Think Locally

Dossier
The impact of the Covid-19 pandemic on Europe's economy, health systems and democracy is enormous. In terms of European policy, it will now be important to shape the economic construction in Europe in a socially and ecologically sustainable way. Municipalities are now seen as the new bearers of hope in this endeavour and initiatives at the local level are already making a difference in many areas and are seen as potential drivers of the socio-ecological transformation. The focus of this years’ Annual European Conference is thus put on the local dimension of the European Green Deal. 
By Heinrich-Böll-Stiftung

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