The Environment, Climate and Food Safety Committee (ENVI) adopted its position on the Commission’s proposal for an amendment to the EU Climate Law on Monday, 10 November. It includes the 2040 EU climate target of reducing greenhouse gas emissions by 90 per cent compared to 1990 levels, with increased use of carbon credits.

“There are couple of options on the voting menu (…) For those MEPs who think that the Commission may have come with a better proposal, I recommend to vote the rejection,” suggested MEP Ondřej Knotek (PfE/CZE), rapporteur on the file, before voting started. In vain: the text was adopted by 55 votes to 32, with 0 abstentions.

More flexibilities for member states

The ENVI Committee agreed with the Commission’s proposal to introduce new flexibilities in how the target can be met. Starting from 2036, up to 5 per cent of net emissions reductions could come from high-quality international carbon credits from partner countries. MEPs, however, want assurances that this will be subject to robust safeguards. The Commission’s original proposal included only up to 3 per cent of these credits.

MEPs want the possibility for domestic permanent carbon removals to be used to compensate for hard-to-abate emissions in the EU emissions trading system (EU ETS) as well as enhanced flexibilities within and across sectors. That includes instruments to achieve targets that are as cost effective as possible.

Permanent carbon removals can be used to compensate for hard-to-abate emissions in the EU emissions trading system. – ENVI’s position on the Climate Law amendment

MEPs also supported the member states’ proposal to postpone from 2027 to 2028 the start of the ETS2 system. It covers CO2 emissions from fuel combustion in buildings and road transport.

Review every second year

The MEPs want the Commission to assess progress towards intermediate targets every second year, taking into account the most recent scientific data, technological developments, and the EU’s international competitiveness.

Among other aspects, the review will assess the status of net removals at the EU level compared with what is necessary to meet the 2040 goal, as well as emerging difficulties and the potential for enhancing EU industries’ global competitiveness. The review will also consider trends in energy prices and their repercussions for both businesses and households.

Following the conclusions of the review, the Commission will propose an amendment to the EU climate law if appropriate. This could involve modifying the 2040 target or taking additional measures to strengthen the supporting frameworkfor instance to safeguard the EU’s competitiveness, prosperity, and social unity.

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It is expected that plenary session will vote on Parliament’s position on 13 November. After that, negotiations with the member states on the final law can begin.