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EU proposes draft climate change plan Fit for 55: Comprehensive transformation of society and economy

2021-10-07

European Commission President Ursula von der Leyen and Vice President Frans Timmermans unveiled a massive climate change plan on Wednesday evening (14th), Taipei time, including carbon tariffs, a 2035 ban on gasoline vehicles, and the 2030 renewable energy target. This "Fit for 55" package proposes 12 policy measures to ensure future climate and energy policies are aligned with the goals set out in the European Climate Law and to guide other countries in following suit at the November UN Climate Conference in Glasgow, Scotland. Fit for 55: Towards a Climate-Neutral Europe: A 55% Reduction in Greenhouse Gases by 2030. To fulfill its contribution to the goals of the Paris Agreement, the European Commission proposed the Green Deal in December 2019, aiming to make Europe the first climate-neutral continent by 2050. This goal was formally enshrined in the European Climate Law, which came into effect in July 2021, specifically committing to a 55% reduction in net greenhouse gas emissions by 2030 compared to 1990 levels. To achieve this 55% reduction nine years from now, the European Commission held a virtual press conference on the evening of the 14th, unveiling a "55-case plan" covering climate, energy, buildings, carbon trading, land use, transportation, and taxation to drive economic and social transformation. Due to its broad scope, it will affect not only industries like energy, transportation, manufacturing, aviation, shipping, and agriculture, as well as EU trading partners, but also ordinary consumers, even impacting vulnerable households and micro-enterprises. For this policy to be officially implemented, it requires approval from all 27 member states and the European Parliament, a process that could take two years. Expanding the EU Emissions Trading System (ETS) raises the cost of pollution for power generation and heavy industry; after 2030, the aviation industry will no longer receive free carbon allowances. The EU Emissions Trading System (ETS) annually sets a price on carbon and lowers the cap on total allowances for certain economic sectors. Over the past 16 years, the European Transport Safety System (ETS) has successfully limited emissions from power generation and energy-intensive industries. Now, the European Commission has announced that the overall carbon emissions cap will be tightened, with gradually increasing annual reductions. The Commission has also introduced new measures for land and sea transport, phasing out free carbon allowances for the aviation industry to align with the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). For the first time, maritime emissions will also be included in the ETS. Furthermore, the European Commission has stated that it will establish a separate new carbon trading mechanism for direct emissions from fuel use in road transport and the residential and commercial sectors, as these sectors have been relatively inadequate in reducing carbon emissions. The Guardian reported that under the ETS trading system, the cost of pollution for power generation and heavy industry has become significantly higher. The future tightening of the ETS cap, coupled with the elimination of free allowances after 2030, will gradually increase the cost of pollution. Source: Environmental Information Center (https://e-info.org.tw/node/231700)

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