Starting from 2035 in the European Union it will no longer be possible to sell petrol and diesel cars, taxes on electricity will be reduced, but above all those who pollute the most will pay more. These are some of the proposals contained in the climate package presented by the European Commission which indicates the tools to be used to carry on the green revolution. The main objectives are already known: by 2030 CO2 emissions will have to be reduced by 55%, with the final goal of zeroing them by 2050. The maxi plan published today outlines the way to reach the goal. A path that aims to "punish" those who pollute the most, attributing a price to harmful emissions, and to "reward" those who produce, consume and innovate while respecting the planet.
The proposals contained in the plan dubbed FitFor55 will have to pass the scrutiny of the Parliament and the EU Council, where rather heated negotiations are already expected.
“The fossil fuel economy has reached its limits, new models are needed. We kept our promise. Europe is the first continent to present a global architecture to deliver our climate ambitions with a roadmap. Attributing a price to carbon will be the central point that will guide the economy and will be linked to a social fund”. These are the words of the President of the EU Commission, Ursula von der Leyen. "The goals and commitments to achieve them are no longer just a political aspiration but will become legal obligations, this is the common path that we share, that the states share", she added.
“We are updating our twenty-year-old energy taxation rules to encourage the use of greener fuels and curb harmful tax competition in the energy sector,” he summarized. the Commissioner for the Economy, Paolo Gentiloni. “We are also proposing a carbon border adjustment mechanism that will align the carbon price for imports with that applicable within the EU. In full compliance with WTO commitments, this will ensure that our climate ambitions are not undermined by foreign companies subject to less stringent environmental obligations. It will also encourage greener standards beyond our borders. We need to act now: this is the last chance”, concluded Gentiloni.
The EU objectives are ambitious but do not scare Enel: “We support with conviction – he commented Francesco Starace, managing director of the electric group – the European Commission's proposal to deliver the ambitious EU Green Deal through a set of necessary, concrete and comprehensive tools. We are definitely in favor of higher targets on Renewables, such as 40% by 2030, specific Energy Efficiency targets and the announced enhancement of the already existing and functioning ETS. Targets are important, but a rapid and effective streamlining of permitting procedures at Member State level, especially for renewables, is equally essential to achieving them. For Enel, this set of proposals is also paving the way for a much-needed acceleration towards further electrification of energy end-uses, such as road transport and heating, which already represents the most competitive and cleanest alternative to fossil fuels .”
CAR
The Brussels proposal on cars plans to cut polluting emissions from cars by 55% from 2030 and 100% from 2035 compared to 2021 levels. On balance, it means banning the sale of petrol and diesel vehicles, sanctioning the final farewell to internal combustion engines.
“All new cars registered from 2035 will be zero-emissions – reads the commission website – To allow drivers to have access to a reliable network across Europe for recharging or refueling their vehicles, the revision of the regulation on alternative fuels infrastructure will require Member States to increase charging capacity in line with sales of zero-emission cars and to install recharging and refueling points at regular intervals on major highways: every 60 km for electric charging and every 150 km for hydrogen refuelling”.
RENEWABLE
The Commission has proposed to increase the target for energy production in order to produce 40% of all energy produced in the EU from renewable sources by 2030. All states will have to contribute to achieving this goal. Specific targets foreseen for the use of renewable energy in transport, heating and air conditioning.
“We strongly support the European Commission's proposal to implement the ambitious EU Green Deal through a set of necessary, concrete and comprehensive tools: the so-called “Fit for 55″ package. We are definitely in favor of higher targets for Renewables, such as 40% by 2030, specific Energy Efficiency targets and the announced enhancement of the already existing and functioning ETS”, commented Francesco Starace, CEO of Enel.
MUG
Another key proposal in the climate package is to move from volume-based energy taxation to one based on the energy content of fuels. Brussels has also carried out a simulation using the new system which could gradually enter into force starting from 2023. According to what has been established, the minimum tax on petrol would go from 0,359 to 0,385 cents per litre, that on diesel from 0,330 to 0,419 cents per litre.
On the contrary, the Commission plans to significantly reduce the minimum taxes on electricity: from one euro per megawatt/hour to 58 cents.
FUND FOR THE CLIMATE
The EU Commission has proposed to create a new social fund for the climate into which, from 2025 to 2032, 72,2 billion euros will flow, deriving from the expected revenues from the trading of emission allowances from construction and fuel for road transport . With the contribution of the Member States, the amount of the fund could double, reaching 144,4 billion.
These resources that will be used to help families most penalized by climate objectives that will cause an increase in bills. “The benefits of acting now to protect people and the planet are clear”, comments Brussels, explaining that “The central challenge of the green transition in Europe is to ensure that the benefits and the resulting opportunities are accessible to all in the way as quickly and fairly as possible".
EMISSIONS MARKET
The plan aims to reform the EU's Emissions Trading System, known by its acronym ETS. To date, the mechanism allows companies that pollute the most to buy emission allowances from companies that have excess. Over the past 16 years, "this system has made it possible to reduce emissions from electricity production and energy-intensive industries by 42,8%," explained Brussels. The new proposal envisages extending the ETS market to the aviation and maritime sectors, in parallel creating a new separate system for trading emissions quotas for the distribution of fuel for road transport and fuel for buildings.
DUTIES FOR THOSE WHO RELOCATE
The FitFor55 plan plans to introduce a new carbon border adjustment mechanism that will set a carbon price for imports of certain products. The aim is to encourage the implementation of ambitious environmental policies and prevent carbon-intensive production from moving outside Europe, where less stringent standards apply. The mechanism could come into force in 2026 and could be valid concrete, steel, aluminum, fertilizers and electricity.
