Finally it’s out - the EU’s Fit for 55 package. What’s in it? Is it ambitious enough? Find out more in this thread. The good, the bad and the ugly.
1. The purpose of the Fit for 55 package is to meet the EU’s Green Deal goal of climate neutrality by 2050 and a 55% reduction in emissions by 2030. This makes it a hugely important package. Picture 1.jpg
2. Probably the most far-reaching & controversial element of the proposals is the extension of the Emissions Trading System to the buildings & transport sector. Could have major ramifications for the existing policies, the price of fossil fuels & equity. raponline.org/knowledge-cent…
3. The proposal is for a separate ETS for buildings and transport but there is an expectation that the two systems might merge in the future. The cap on emissions is intended to be consistent with the 55% goal.
4. To address equity concerns the Commission proposes a Social Action Climate Facility. Much needed but far from enough. Only 25% of new revenues to be matched by Member States & begins to disperse funds in mid-2025, a year before price impact is felt. euractiv.com/section/energy…
5. All revenues from existing ETS must now be used for ‘climate-related purposes’. Good. Existing issues remain around: 1) definition of ‘climate-related purposes’ and MS interpretation 2) additionality 3) reporting and accountability as @WWFEU point out. wwfmmi.org/?uNewsID=38864…
6. The EU’s principle of Efficiency First is well-reflected in the revised Energy Efficiency Directive with and increased energy savings target and Article 7 (now 8) close to doubling the ambition level from 2024. Need to dig into flexibilities more to provide full judgement.
7. The current RES target of 32% by 2030 will be increased to 40% roughly doubling the share of solar, wind and other renewables in Europe’s energy mix by the end of the decade. The good news is that we can do even more and move even faster. climact.com/en/increasing-…
8. On heating and cooling the proposals are more disappointing. Whilst the revised RED makes the targets mandatory it still allows unsustainable bioenergy to continue being used and doesn't encourage electrification sufficiently. euractiv.com/section/biomas…
9. The definition of efficient district heating is still too unambitious allowing for large quantities of fossil fuels to be used well into the 2040s.
10. But fossil fuel combustion technologies are no longer eligible to count towards energy savings targets of the EED. Something @RegAssistProj asked for earlier this year. raponline.org/knowledge-cent…
11. Currently most EU Member States subsidise new fossil fuel heating systems and count energy savings as @ CoolproductsEU have shown. Those savings will no longer count under the proposals. coolproducts.eu/uncategorized/…
12. Electric vehicles receive a boost through revised CO2 standards for new cars and vans. Updated regulation requires a 50-55% cut in emissions from new vehicles by 2030 & the end of ICE by 2035. New credit mechanism for transport to support electrification from the RED.
13. Charging infrastructure for EVs including trucks will grow with binding targets for member states based on the fleet size with high power charge points every 60 km. Smart charging will become the norm as recommended in ‘Start with Smart’. raponline.org/knowledge-cent…
14. A Carbon Border Adjustment Mechanism is proposed by the Commission. My colleague Zsuzsa Pato wrote about this instrument in an earlier article and concludes that an extended ETS outperforms carbon border adjustment in the power sector. euractiv.com/section/emissi…
15. Revised Energy Taxation Directive is intended to level the playing field and enable low carbon energy to compete with fossil fuels more effectively. This is laudable because current taxes and levies structures stand in the way of clean technologies. euractiv.com/section/electr…
16. But changes will need to be agreed with unanimity from EU countries. A previous attempt to revise the legislation started in 2011, but the European Commission withdrew the proposal in 2015 in the face of opposition from EU member states.
17. If you want a deep dive on equity and the Fit for 55 package I highly recommend reading this by my esteemed colleague @sunderlandlouis
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