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The EU has implemented the world's largest carbon-pricing system, the emissions trading system (ETS). While pricing emissions can encourage industrial decarbonisation, it also risks carbon leakage, whereby EU companies move their production abroad. To date, the EU has mitigated carbon leakage through free allocations to certain industries, but with rising climate ambition and higher carbon prices, the Commission seeks to phase out free allocations. In parallel, a novel carbon border adjustment mechanism ...

As part of the 'Fit for 55' package, the Commission is proposing a revision to the EU's emissions trading system (ETS) as regards carbon dioxide emissions from aviation. The proposal seeks to ensure that the sector contributes to the EU's climate targets through increased auctioning of allowances, with an end to free allowances from 2027, and by applying the linear reduction of aviation allowances. The proposal will also integrate, into the revised ETS, the International Civil Aviation Organization's ...

The EU's effort-sharing legislation covers greenhouse gas (GHG) emissions in sectors not included in the EU emissions trading system. A wide range of sources account for these emissions, such as petrol and diesel used for road transport, energy used for heating and cooling in buildings, animal digestion and fertilisers used in agriculture, waste treatment, and small industries. To cut the emissions in these sectors, the EU effort-sharing legislation establishes binding targets and sets up annual ...

As part of the 'Fit for 55' package, the Commission presented a legislative proposal to review the EU Emissions Trading System (ETS). The aim of the review is to align the EU ETS Directive with the EU target set out in the European Climate Law to reduce net greenhouse gas (GHG) emissions by 55 % by 2030, compared to 1990 levels. To this end, the amount of emission allowances would be reduced, fewer allowances would be allocated for free, and the ETS would be extended to maritime transport. This would ...

On 14 July 2021, as part of the 'fit for 55' package, the Commission presented a legislative proposal for a revision of the Regulation setting CO2 emission performance standards for passenger cars and light commercial vehicles (vans). To raise the contribution of the road transport sector to the EU's climate targets, the proposal sets more ambitious 2030 targets for reducing the CO2 emissions of new cars and vans and allows only zero-emission vehicles from 2035. In the European Parliament, the proposal ...

Accounting for about one quarter of global primary energy supply, coal is used mainly for power generation, heating, and in industries such as iron, steel and cement manufacturing. It provides almost 40 % of global electricity production and is responsible for over 40 % of energy-related CO2 emissions. While the global use of coal is driven by emerging economies in Asia, the West – and Europe in particular – is seeing a sharp decline in coal use because of air pollution, climate policies and, in ...

To reach the climate neutrality envisaged in the Green Deal by 2050, reducing agricultural GHG emissions is not enough, and efforts to implement large scale carbon sequestration in European agricultural soils will be necessary. The renewed CAP includes improvements in environmental conditionality and foresees eco-schemes and agri-environmental measures that can help achieve this goal. Carbon sequestration in soil is cost-effective, but improvements in methodology are still required, as well as the ...

Plenary round-up – June II 2022

At a Glance 24-06-2022

The highlight of the June II 2022 plenary session was the vote to overwhelmingly endorse the granting of candidate status to Ukraine and Moldova, and – once it meets the conditions set out by the Commission – Georgia. On the evening of 23 June, EU leaders did indeed follow suit. Members debated preparations for that European Council meeting taking place on 23-24 June 2022, including the meeting with Western Balkan leaders on 23 June. The Parliament also debated with the Commission and Council the ...

After two negative opinions from the Commission's Regulatory Scrutiny Board and without making adaptations in the IA itself after the second negative opinion, the Commission adjusted its legislative proposal: the legislative framework for new buildings would conform largely to the preferred PO3 ('High ambition I'), while changes for existing buildings would conform broadly to PO2 ('Medium ambition'). The IA analyses the problem, the problem drivers and the likely impacts of the proposed policy options ...

Review of the EU ETS: Fit for 55

At a Glance 20-06-2022

On 14 July 2021, as part of the 'Fit for 55' package, the Commission presented a legislative proposal for a revision of the EU Emissions Trading System (ETS), to align it with the target set in the European Climate Law of a 55 % reduction of EU net greenhouse gas (GHG) emissions by 2030, compared to 1990 levels. The report of the Committee on Environment, Public Health and Food Safety (ENVI) was rejected in the June I plenary session, but has been re-tabled for the June II session, including those ...