EU lawmakers have agreed on a weakened 2040 climate goal. An emissions reduction target of 85% by 2040 shows that Europe is still committed to tackling climate change and establishing a globally competitive green economy, but a weakened target (from 90% before) means concrete near-term measures like the car CO2 standards are more important than ever in providing a clear direction to Europe’s businesses and consumers.
Governments agreed to delay the EU’s carbon price on road and heating fossil fuels (ETS2) by a year. According to T&E, this represents a critical delay of climate action and makes it harder to implement effectively. But it does not change the fact that Member States must use the ETS2 frontloaded investments to anticipate the impacts of ETS2 on low- and middle-income households, as well as invest in green technologies. The one year delay is still better than the proposed three-year delay which was touted by some members of the EPP and the far right, which would have denied governments significant revenues and would have raised ETS prices much higher, says T&E.
Federico Terreni, climate policy manager at T&E, said: “A weakened 2040 target and a delay to ETS2 undermines the clear pathway towards increased energy security. Upholding ambitious car CO2 standards is now more crucial than ever in providing Europe’s consumers and businesses a clear signal that Europe’s economy is going green. The more we chip away at the key foundations of the EU Green Deal, the longer we remain hostage to volatile fossil fuel markets.”
Governments have agreed that up to 5% of the target can be met with international carbon credits. This is far too high, says T&E, and will slow down and create uncertainties for investments in green technologies which will be the backbone of Europe’s future economy. The acquisition of a limited amount of high-quality, high-permanence international carbon credits characterised by stringent eligibility criteria, could be considered, says T&E. But it warns that if these stringent criteria cannot be guaranteed, international carbon credits should not form part of the EU’s target.
