EU gets tougher on CO2 emissions

The European Commission has adopted a package of proposals to make the EU’s climate, energy, land use, transport and taxation policies fit for reducing net greenhouse gas emissions by at least 55% by 2030, compared to 1990 levels.

Achieving these emission reductions in the next decade is crucial to Europe becoming the world’s first climate-neutral continent by 2050 and making the European Green Deal a reality, it says.

MIA chief executive David Crawford says an important part of the transport measures is that they aim to be technology agnostic.

“So while the headlines say ICE vehicles will be banned, there is provision for ICE vehicles to continue to be produced where they are fuelled by zero emission fuels, such as synthetic fuels,” he says.

“The EU proposals make a point of saying it is CO2 fuels (hydrocarbons) that will be banned.” Synthetic fuels that are carbon neutral in their production and use will continue to be permitted, Crawford explains.

“Importantly, while this is what is happening in Europe, we need to keep in mind that we source vehicles from the rest of the world too and they are on a different timeline. It is all a bit of a melting pot at present.”

Crawford says while the strengthened EU policy focuses on cars and vans, there are impacts for heavy vehicles and motorcycles as well.

Stronger CO2 emissions standards for cars and vans will accelerate the transition to zero-emission mobility by requiring average emissions of new cars to come down by 55% from 2030 and 100% from 2035 compared to 2021 levels.

As a result, all new cars registered as of 2035 will be zero-emission.

To ensure that drivers can charge or fuel their vehicles at a reliable network across Europe, the revised Alternative Fuels Infrastructure Regulation will require member states to expand charging capacity in line with zero-emission car sales, and to install charging and fuelling points at regular intervals on major highways – every 60km for electric charging and every 150km for hydrogen refuelling.

The commission is presenting the legislative tools to deliver on the targets agreed in the European Climate Law and fundamentally transform the EU’s economy and society, including faster low emission vehicle roll-out.

They combine the application of emissions trading to new sectors and a tightening of the existing EU Emissions Trading System, increased use of renewable energy, greater energy efficiency, a faster roll-out of low emission transport modes and the infrastructure and fuels to support them, an alignment of taxation policies with the European Green Deal objectives, measures to prevent carbon leakage, and tools to preserve and grow natural carbon sinks.

The commission is also proposing to phase out free emission allowances for aviation and align with the global Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) and to include shipping emissions for the first time in the EU ETS.

The Alternative Fuels Infrastructure Regulation requires that aircraft and ships have access to clean electricity supply in major ports and airports.

The ReFuelEU Aviation Initiative will oblige fuel suppliers to blend increasing levels of sustainable aviation fuels in jet fuel taken on-board at EU airports, including synthetic low carbon fuels, known as e-fuels.

Similarly, the FuelEU Maritime Initiative will stimulate the uptake of sustainable maritime fuels and zero-emission technologies by setting a maximum limit on the greenhouse gas content of energy used by ships calling at European ports.

To address the lack of emissions reductions in road transport and buildings, a separate new emissions trading system is set up for fuel distribution for road transport and buildings.

The commission also proposes to increase the size of the Innovation and Modernisation Funds.

A dedicated part of the revenues from the new system for road transport and buildings should address the possible social impact on vulnerable households, micro-enterprises and transport users.

The Effort Sharing Regulation assigns strengthened emissions reduction targets to each member state for buildings, road and domestic maritime transport, agriculture, waste and small industries.

Member states also share responsibility for removing carbon from the atmosphere, so the Regulation on Land Use, Forestry and Agriculture sets an overall EU target for carbon removals by natural sinks, equivalent to 310 million tons of CO2 emissions by 2030.

Energy production and use accounts for 75% of EU emissions, so accelerating the transition to a greener energy system is crucial, the commission believes.

The Renewable Energy Directive will set an increased target to produce 40% of energy from renewable sources by 2030.

“We are updating our two-decades old energy taxation rules to encourage the use of greener fuels and reduce harmful energy tax competition,” commissioner for economy Paolo Gentiloni says.

“And we are proposing a carbon border adjustment mechanism that will align the carbon price on imports with that applicable within the EU.”

Commissioner for energy Kadri Simson says: “The proposals set more ambitious targets, remove barriers and add incentives so that we move even faster towards a net-zero energy system.”

Commissioner for transport Adina Vălean adds that with the three transport-specific initiatives the commission will support the transport sector’s transition into a future-proof system.

“We will create a market for sustainable alternative fuels and low-carbon technologies, while putting in place the right infrastructure to ensure the broad uptake of zero-emission vehicles and vessels.”