Written by Gregor Erbach and Liselotte Jensen.
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 covered by the Effort-sharing Regulation, and to increase carbon removals in the land use, land-use change and forestry (LULUCF) sector.
Transport: A challenging sector for climate action
GHG emissions from the transport sector have stagnated over the past decade, while other sectors such as electricity generation and industry achieved substantial emissions reductions, not least thanks to the EU ETS. To ensure that the transport sector contributes to the EU’s climate objectives, the maritime and road transport sectors are to be included in the EU ETS (while still covered by the Effort-sharing Regulation). Together with a review of the Energy Taxation Directive, this would raise the price of GHG emissions in the transport sector. The proposed revision of the Renewable Energy Directive sets requirements for renewable transport fuels, and introduces a credit mechanism to promote electromobility. Specific legislative proposals address emissions reductions and the supply of alternative fuels in the road transport, maritime transport and aviation sub-sectors.
Energy: At the heart of the climate neutrality transition
Several proposals in the ‘fit for 55’ package address energy-related GHG emissions. The principal targets to contribute to the overall 55 % net emissions reduction are a 40 % share of renewable energy sources by 2030, and a substantial reduction of primary and final energy consumption. A higher carbon price through the revision of the EU ETS and the Energy Taxation Directive will drive the roll-out of renewables and energy efficiency improvements.
EU ETS: Cornerstone of EU climate action
The ‘fit for 55’ package contains four proposals to raise the ambition of the EU ETS, improve its functioning, broaden its scope to maritime transport, road transport and buildings, and provide for the participation of airlines in the international CORSIA offsetting scheme. These are complemented by proposals for a carbon border adjustment mechanism to safeguard international competitiveness by pricing the carbon emissions of imports, and for a social climate fund to address the social impacts of extending the EU ETS to road transport and buildings.
- Effort-sharing Regulation review: EU legislation in progress briefing; initial appraisal of Commission impact assessment
- LULUCF Regulation review: legislation in progress; initial appraisal
- EU ETS Directive review: legislation in progress; initial appraisal
- EU ETS market stability reserve review: legislation in progress
- EU ETS as regards aviation / Notification on CORSIA: legislation in progress; initial appraisal
- Carbon border adjustment mechanism: legislation in progress; initial appraisal
- Renewable Energy Directive review: legislation in progress; initial appraisal
- Energy Efficiency Directive review: legislation in progress; initial appraisal
- Social climate fund: legislation in progress; (no impact assessment prepared by the Commission)
- Energy Taxation Directive review: legislation in progress; (consultation procedure, no initial appraisal)
- Energy Performance of Buildings Directive review: legislation in progress; implementation in action
- Methane regulation: legislation in progress; initial appraisal (forthcoming)
- EU regulation on gas and hydrogen networks recast: legislation in progress; implementation appraisal
- EU directive on gas and hydrogen networks recast: legislation in progress
- CO2 emission standards for cars and vans: legislation in progress; initial appraisal
- Alternative fuels infrastructure regulation: legislation in progress; initial appraisal
- ReFuelEU Aviation: legislation in progress; initial appraisal
- FuelEU Maritime: legislation in progress; initial appraisal
Read this briefing on ‘Fit for 55 package‘ in the Think Tank pages of the European Parliament.