MEPs voted on a compromise amendment to the European Climate Law, which was agreed last year by representatives of the member states and the European Parliament. 413 MEPs were in favor, 226 against, with 12 abstentions. The package includes a commitment to reduce greenhouse gas emissions by 90 percent in 2040 compared to 1990 levels.
Every two years, progress report will be produced with possibility to review the 2040 Climate Target. In addition, the amendment also includes postponement of EU emissions trading system ETS2 until 2028. ETS2 will cover CO2 emissions from fuel combustion in buildings and road transport.
The amendment still needs to be formally approved by the Council of the EU, which represents member states. This is more of a formal step, however, and no obstacles are expected. Once Council has endorsed the text, it will enter into force 20 days after it has been published in the EU Official Journal.
Controversial carbon credits included
The revised climate law introduces so-called flexibilities in how the 2040 Climate Target can be met. From 2036, up to five percentage points of net emissions reductions (two percentage points more than originally proposed by the Commission) can come from high-quality international carbon credits from partner countries. MEPs included safeguards to prevent the funding of projects contrary to the strategic interests of the EU.
International carbon credits present a reduction of responsibility and may be used in future as a pretext for similar weakening of green policy. – Patrick ten Brink, Secretary General of European Environmental Bureau
International carbon credits have been subject of fierce criticism from a number environmental organizations. In a recent interview, Patrick ten Brink, Secretary General of European Environmental Bureau, called the inclusion of carbon credits into the EU’s 2040 Climate Target ’a reduction of responsibility’. Mr ten Brink also argued that such a ’flexibility’ may be used in future as a pretext for similar weakening of green policy.
The text also includes the possibility for domestic permanent carbon removals to be used to compensate for hard-to-abate emissions in the ETS. Enhanced flexibility within and across sectors and instruments to achieve targets as cost effective as possible are also part of the deal. The reason is that the green transition and improving EU competitiveness should go hand in hand.
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Revision every second year
Commission will assess progress towards the 2040 Climate Target every second year, in view of up-to-date scientific data, technological developments, and the state of the EU’s industrial competitiveness. It will also consider trends in energy prices and their repercussions for both businesses and households.
Following the review, Commission may propose another amendment to the EU Climate Law. That could involve modifying the 2040 Climate Target or taking additional measures to strengthen the supporting framework in order to safeguard the EU’s competitiveness, prosperity, and social unity.
