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The EU has the world's largest carbon-pricing system, the emissions trading system (ETS). Emissions pricing can encourage industrial decarbonisation, but it also risks carbon leakage, whereby EU companies move their production abroad. To date, the EU has mitigated this risk through free allocations to certain industries, but with rising climate ambition and higher carbon prices, the Commission is now seeking to phase out free allocations. A new carbon border adjustment mechanism (CBAM) would also ...

As part of the 'Fit for 55' package, the Commission proposed 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 would also integrate, into the revised ETS, the International Civil Aviation Organization's ...

The proposal to revise the market stability reserve (MSR) for the EU emissions trading system (ETS) consists of prolonging its current parameters. Under the current rules, the intake rate of allowances to the MSR and the minimum allowances placed in the reserve have been doubled until the end of 2023, to allow for a quick removal of surplus EU ETS allowances. The proposal is aimed at maintaining the current doubled intake rate (24 %) and minimum number of allowances placed in the reserve (200 million ...

As part of the 'Fit for 55' package, the European 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 ...

On 30 November 2022, as part of the European Green Deal, the Commission presented the legislative proposal for a Union certification framework for carbon removals. The initiative was first announced in the March 2020 new circular economy action plan and again highlighted in the climate target plan, as well as in the proposed 'fit for 55' revision of the regulation on land use, land-use change and forestry (LULUCF), as an essential tool to drive progress towards the 2050 climate neutrality target. ...

To align regulations and policies with the legally binding goals – delivering, by 2030, a 55 % net greenhouse gas emissions reduction compared to 1990, and reaching climate neutrality in Europe by 2050 – on 14 July the European Commission presented its first proposals under the 'fit for 55' package. One of these proposals involves amending Regulation (EU) 2018/841 on emissions and removals from land use, land-use change and forestry (the LULUCF Regulation). Among the main changes envisaged are to ...

This study assesses the needs and vulnerabilities of the EU in accessing products containing Critical Raw Materials (CRM) needed for the green and digital transitions in a changing geopolitical context. It provides an overview on the wider situation, as well as a policy context. The study sets out to identify at which stage of the supply chain, ranging from raw materials to final products, the European industrial eco-system is dependent on CRM imports. It reviews the CRM methodology designed by the ...

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 ...

On 14 July 2021, the European Commission presented a package of proposals to make the EU's climate, energy, land use, transport and taxation policies fit for reducing net greenhouse gas emissions by at least 55 % by 2030, compared with 1990 levels – the 'fit for 55' package. The package includes a proposal to ensure a level playing field for sustainable air transport, also known as the ReFuelEU Aviation initiative. In the draft regulation, the Commission proposes obligations on fuel suppliers to ...

This study, commissioned by the European Parliament’s Policy Department for Citizens’ Rights and Constitutional Affairs at the request of the FEMM Committee, assesses whether a gender dimension has been incorporated into the initiatives proposed under the Fit for 55 package and whether a gender-sensitive approach was used in its formulation. Examples are given of good practice for gender mainstreaming in energy and climate policy. Recommendations are made to close identified gender gaps in policies ...