In the run-up to his confirmation hearing at the European Parliament on 7 November, the current European Commissioner for Climate Action, Wopke Hoekstra, who is the candidate for another mandate as head of the Climate, Net-Zero and Clean Growth portfolios, has stated that he wants to continue working towards climate neutrality with “favourable conditions for our companies to embark on the transition”, using instruments such as the Carbon Border Adjustment Mechanism.
In his answers to MEPs’ written questions, the Commissioner-designate defends a programme that aims to make the European Union a world leader on climate issues, with active green diplomacy and economic and social integration in the ecological transition.
Green diplomacy. Wopke Hoekstra believes that the European Union must encourage its international partners to set ambitious climate targets in line with the Paris Agreement.
He wants to develop carbon pricing, which he considers essential to create a global market conducive to decarbonisation. He plans to extend this model, inspired by the European Emissions Trading System (ETS), which has reduced emissions by 47% since 2005, to the major economies and emerging countries.
To achieve these objectives, Mr Hoekstra plans to step up cooperation within the Climate Club – the intergovernmental forum launched at COP28, which brings together 42 members, including the European Union, and on which a declaration is expected (see EUROPE 13480/3). He also intends to work more closely with the G7 and G20, promote bilateral green alliances, and increase support for developing countries to boost their green investments.
COP29. In the run-up to the summit in Baku, Azerbaijan on 12 November, in addition to a “new collective quantified goal on climate finance”, Wopke Hoekstra sets priorities such as implementing Article 6 of the Paris Agreement to establish international carbon markets.
He states that the EU must encourage the major emitters to submit more ambitious national contributions from 2025, backed up by European assistance.
He also proposes revising the Energy Taxation Directive to phase out fossil fuel subsidies.
Adaptation. According to Wopke Hoekstra, the implementation of the target of a 90% net reduction in greenhouse gas emissions by 2040 provides the necessary stability for investors and industry and guarantees the credibility of Europe’s climate efforts (see EUROPE 13507/7). To achieve this objective, which he would like to “enshrine in (the) European Climate Law”, the Commissioner supports the implementation of the Clean Industrial Deal, expected within the first 100 days of the mandate of the new European Commission, a plan to decarbonise industries with incentives for clean technologies and support for energy-intensive sectors to maintain their competitiveness.
For sectors that are difficult to decarbonise, Mr Hoekstra envisages setting up infrastructure for the capture, storage and usage of CO2 (CCS and CCU). He proposes a European atlas of CO2 storage sites to enable companies and Member States to identify long-term storage options. A single market for CO2 in Europe would boost investment and technological innovation, while making Europe a more attractive place for green investment.
Taxation. To combine his two portfolios, Mr Hoekstra promises to strive to find ways for the tax systems to “[support] competitiveness, prosperity and fairness and for the implementation of the twin transition”.
In particular, he wants to work towards energy taxation and tax measures to encourage the adoption of clean technology, and to assess ways of making value-added tax (VAT) systems greener.
In view of the lack of harmonisation of environmental taxes in the EU, he will initiate discussions on more coherent environmental taxation and will strengthen taxes that apply the ‘polluter pays’ principle.
With regard to the Energy Taxation Directive (see EUROPE 13507/17), he will draw on the recommendations of the ‘Draghi’ report in order to avoid a negative impact on energy prices and competitiveness, in liaison with the Commissioner for Energy.
On corporate taxation, he plans to stress test the EU’s tax acquis and to step up the fight against tax evasion and avoidance.
He will explore the reactivation of the ‘DEBRA’ proposal (see EUROPE 13329/16) and will support a coherent fiscal framework to foster the integration of the financial sector. “The development of a common corporate tax framework in the EU” remains a priority, as does the BEFIT initiative (see EUROPE 13420/21).
Wopke Hoekstra also advocates a multilateral approach to digital taxation (see EUROPE 13417/20).
See Mr Hoekstra’s written answers: https://aeur.eu/f/dzu (Original version in French by Anne Damiani and Nithya Paquiry)