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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 ...

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 ...

Review of the EU ETS: Fit for 55

Glaustai 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 ...

The European Commission proposed a carbon border adjustment mechanism (CBAM), which aims to level the playing field between EU and third-country producers by putting a carbon price on certain imported products, while phasing out free allocation of emissions allowances to European industry. The European Parliament's Committee on the Environment, Public Health and Food Safety (ENVI) adopted a report that puts forward significant amendments to the original proposal. The vote on the report was re-scheduled ...

Fit for 55 package

Briefing 03-06-2022

The 'fit for 55' package, presented in July and December 2021, is designed to realise the European Climate Law objectives: climate neutrality by 2050 and a 55 % reduction of net greenhouse gas (GHG) emissions by 2030, compared with 1990 levels. It consists of 13 interlinked proposals to revise existing EU climate and energy laws, and six proposals for new legislation. The proposals aim to accelerate emission reductions in the sectors covered by the EU emissions trading system (ETS) and the sectors ...

The EU's effort-sharing legislation covers greenhouse gas (GHG) emissions in sectors not included in the EU emissions trading system (ETS). To reduce the emissions in these sectors for the 2021-2030 period, the Effort-Sharing Regulation (ESR) establishes binding national targets and sets up annual emissions allocations (AEAs) for each Member State, defining the trajectory it should follow to cut the emissions. On 14 July 2021, the European Commission submitted a proposal for a regulation amending ...

Carbon dioxide (CO2) emissions from aviation have been included under the EU emissions trading system (ETS) since 2012. Because of international pressure, a derogation is in place for emissions from flights to and from third countries. With aviation emissions projected to increase to 2050, the European Commission's proposal for a revision of the EU ETS for aviation, part of the 'fit for 55' package, aims to ensure the sector contributes to reaching the climate goals. The European Parliament is due ...

Social climate fund

Glaustai 01-06-2022

As part of the 'fit for 55' package, the Commission has proposed the creation of a social climate fund (SCF) to compensate vulnerable households, micro-businesses and transport users for some of the costs of the green transition. The fund would be financed primarily through the extension of the EU emissions trading system to cover the buildings and transport sectors. Members will debate the SCF during the June I 2022 plenary session.

This at a glance note summarizes the research paper that provides a general overview of the current and proposed pricing instruments on road transport CO2 emissions in the EU.

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 ...