Thread by @ThPellerin

Here we are ! Finally, after 18 months of big talks and long-term objectives about #EUGreenDeal, @EU_Commission releases its mammoth package #FitFor55 #FF55.
Here is my key take-aways: the good, the bad, the ugly. #Thread 👇

Good 1: that’s a massive policy push to transform #EUGreenDeal promises into concrete actions to change our ways of life. @FransTimmermans recognises this will be “bloody hard”, but righly underlines that our future depends on it.

Good 2: Creation of the Social Climate Fund that we @DelorsInstitute have been calling for years. This Fund should start as of 2025 with EU budget, and could invest up to 70Bn€ from 2025 to 2032 to finance national plans to ensure social justice in the transition. #EnergyPoverty

Good 3: New oil-powered car sales will be banned in the EU as of 2035. Alternative fuel infrastructure directive becomes a regulation. That’s what the @IEA told us we must decide at EU and global level to promote #ElectricVehicles #EV to deliver climate neutrality by 2050.

Good 4: reform of existing carbon markets that should ↗️ the #ETS #CarbonPrice, provide💰to Member States & EU #InnovationFund so they can support innovation, incl. w/ Carbon Contracts for difference #CCfD. Creation of #CBAM to protect EU industry from risks of #CarbonLeakage

Good … BUT. #EnergyEfficiency and #RenewableEnergy targets for 2030 are increased (36% EE final energy, 39% EE primary energy, 40% Renewables). BUT. Those are only EU-level target without legally-binding national targets.

https://twitter.com/EU_Commission/status/1415299457999163397

Bad 1: EU heavy industry will continue to benefit from subsidies to pollute (free ETS allowances). #Alumnium #Cement #Fertilizers #Steel free allowances will gradually decrease in 2025-2035 until #CBAM ramps up. That’s far too late & delays innovation.
institutdelors.eu/en/publication…

Bad 2: creation a new EU carbon market on buildings and road transport #ETS2 is a massive political risk. I already fear a big anti-EU and/or anti-climate backlash. #YellowVests #BonnetsRouges

Ugly 1: @EU_Commission has not proposed a serious price control mechanism for the new EU carbon market on buildings and road transport (#ETS2). MAJOR risk of seeing market price skyrocket & hurt the purchasing power of Europeans. That’s also a MAJOR difference with 🇩🇪experience.

Ugly2: lack of full earmarking of #ETS2 revenues for social compensation and green transition, risk of using part of ETS2 revenues to repay COVID recovery debt, which will be very unpopular.

Ugly3: lack of clear focus on low income and energy poor European families. EU & Member States should first and foremost use ETS2 revenues to life all Europeans from #EnergyPoverty.

@threadreaderapp can you unroll this?