On Wednesday 15 May, the European Commission published four reports required by the legislation to analyse the way in which elements of the EU’s climate policy are being implemented.
They concern the European Climate Law, the Emissions Trading System (ETS) Directive, the Effort Sharing Regulation and the Land Use, Land Use Change and Forestry (LULUCF) Regulation.
European Climate Law. This text sets the objective of climate neutrality by 2050.
Among the measures taken since it entered into force in 2021 is the revision of a number of texts to align them with the target of a 55% reduction in net greenhouse gas emissions by 2030 compared to 1990 levels, set by the ‘Fit for 55' package.
In February 2024, the European Commission also adopted a communication on a target to reduce net greenhouse gas emissions by 90% by 2040 (see EUROPE 13344/1).
Emissions Trading System. The revision of the EU Emissions Trading System (‘ETS’) (see EUROPE 13118/12) has enabled the inclusion of maritime transport and additional emissions from aviation, with a target to reduce emissions by 62% by 2030 compared to 2005 levels.
The Market Stability Reserve (MSR) (see EUROPE 13141/12) has also been adjusted. In addition, a new emissions trading system, ‘ETS2’, covering the buildings, road transport and small industry sectors, will be launched in 2027.
One year earlier, the Social Climate Fund (see EUROPE 13169/41) will allow revenues from the ‘ETS’ to be used to help vulnerable households and micro-enterprises.
Member States are also required to use 100% of the revenues from the sale of EU allowances for climate and energy purposes.
A new review of the ‘ETS’ is expected to be presented in 2026.
Effort Sharing Regulation. Member States are making progress towards achieving their increased targets under the Effort Sharing Regulation (see EUROPE 13141/11), which covers transport, buildings, agriculture, small industry and waste.
However, to achieve the reduction targets set for 2030, additional efforts are needed at national level. The draft ‘National Energy and Climate Plans’ (the NECPs, due in June 2024) need to be improved. In December 2023, the Commission recommended additional policies (see EUROPE 13317/5).
The report: https://aeur.eu/f/c83
Land Use, Land Use Change and Forestry. The LULUCF Regulation, covering emissions and removals from soils, plants and other biomass, was revised in April 2023. It sets a target of increasing land-based net removals in the EU by an additional 42 million tonnes of CO2 (Mt CO2-eq) by 2030, as compared to the yearly average over the period 2016-2018.
However, according to the NECPs, the EU is currently not on track to meet the target, falling short by around 50 Mt CO2-eq.
The Commission has indicated that it will begin a process to evaluate the Regulation later this year.
The report: https://aeur.eu/f/c84 (Original version in French by Pauline Denys and Nithya Paquiry)