With Brexit out of the way, Green will be the buzzword of the year in Brussels. Under the EU’s massive economic recovery program, more than 500 billion euros will start flowing to help the region clean up its energy, industry, transport and farming sectors. The Green Deal, a central pillar of the recovery plan, will be turned into legislation, making irreversible Europe’s ambitious target to become the world’s first climate-neutral continent by 2050. And it will pave the way for a swathe of regulations that will make business and everyday life greener in all areas. Below, we take a closer look at what’s in store over the next few months.
What to Expect This Year
Climate Law | EU governments and the European Parliament are set to agree on the final shape of legislation that will not only make binding the net-zero emissions goal for 2050, but also toughen the 2030 pollution-reduction target of at least 55% from 1990 levels. A deal on the law is a priority for Portugal, which took over the bloc’s rotating presidency from Germany at the turn of the year.
Fit for 55 | Once the climate law is in place, the European Commission will propose a huge overhaul of rules across the economy to put the region on track to meet the 2030 emissions-reduction goal. The package, including rules to tighten the carbon market, boost the share of renewables in energy production and further cut vehicle emissions, will be unveiled in June. After that, negotiations begin in earnest and will last at least a year.
Pollution Price | The cost of emitting CO2 in Europe jumped to a record of 35.2 euros per metric ton earlier on Friday and is expected to break new highs as the bloc gives more teeth to its Emissions Trading System. The planned overhaul will further tighten the number of available permits and will expand the EU cap-and-trade carbon program to new sectors, notably maritime transport.
Carbon Levy | By putting a price on emissions embedded in certain imported goods, the Commission wants to kill two birds with one stone: ensuring a level playing field for European producers and spurring more climate action abroad. The idea of introducing the so-called Carbon Border Adjustment Mechanism has already triggered concerns from countries including Russia and China, but some economists say that it could lead to a transatlantic climate club if President-Elect Joe Biden opts to tax carbon at the U.S. border.
Cleaner Cars | The automotive industry faces stricter emissions standards for cars and new light commercial vehicles. Pollution from transport remains stubbornly high and the EU wants to slash it by discouraging combustion engines and promoting electric vehicles.