Earlier in July, the European Commission put forward a concrete set of proposals aimed at providing substance to the EU’s commitment to cut greenhouse gas emissions to “at least 55%” below 1990 levels by 2030 and to reach “climate neutrality” (i.e., net-zero greenhouse gas emissions) by 2050.
What you will learn:
- The new “Fit for 55” proposals from the Commission mark the beginning of a process of reform that seeks to align the EU’s laws and policies with its overall climate and environmental targets.
- At the centre of the proposals is a plan to more effectively price carbon by tightening the existing emissions-trading scheme and extending a new scheme to include emissions from shipping, road transport, and buildings.
- Since this will largely be a regressive tax, a new Social Climate Fund will aim to recycle the revenues raised, while a new carbon border adjustment mechanism aims to limit the scope for carbon leakage in a limited number of key sectors.