MEPs back changes to EU climate law
The EU will have to significantly reduce greenhouse gas emissions by 2040 following a vote by MEPs, which saw changes to the EU Climate Law pass by 413 votes to 226, with 12 abstentions.
The alterations set a binding target for the EU to reduce greenhouse gas emissions by 90% by 2040 compared with 1990 levels. The same law already makes climate neutrality by 2050 legally binding and contains an interim target to reduce emissions by 55% by 2030, when compared with 1990 levels. It means that the proposal has now passed its last parliamentary hurdle since it was first put forward in July last year[i].
However, the revised climate law also introduces flexibilities in how the 2040 target can be met. From 2036, up to five percentage points of net emissions reductions (two percentage points more than initially proposed by the European Commission) can come from high-quality international carbon credits from partner countries. Crucially, MEPs have also included safeguards to prevent the funding of projects contrary to the strategic interests of the EU.
The text also includes the possibility for domestic permanent carbon removals to be used to compensate for hard to abate emissions in the ETS (Emissions Trading System[ii]), alongside providing flexibility and allowing for targets to be met in a cost-effective manner.
In addition, the EU has also announced that the introduction of the ETS2 will be postponed by one year, from 2027 to 2028. ETS2 will cover CO2 emissions from fuel combustion in buildings and road transport[iii].
Next steps
Once the Council has endorsed the text, the revised law will enter into force 20 days after it has been published in the EU Official Journal. The European Commission will then review progress toward the 2040 target every two years. During review it will consider up-to-date scientific data, technological developments, and the state of the EU’s industrial competitiveness. It will also account for trends in energy prices and their repercussions for both businesses and households and assess the status of net removals at the EU level compared with what is necessary to meet the 2040 goal.
Following the review, the Commission may propose an amendment to the EU climate law, which could involve modifying the 2040 target or taking additional measures to strengthen the supporting framework[iv].
References
[ii] About the EU ETS - Climate Action - European Commission
[iii] ETS2: buildings, road transport and additional sectors - Climate Action
[iv]EU climate law: a 2040 emissions reduction target of 90% for the EU | News | European Parliament
