Covering the EU’s “Fit for 55” package of climate and energy laws
Content:
- Status of the legislative process
- What happens, when and why?
- What is in the package?
- Key disputes to look out for
- Experts to contact for interviews and background, listed by policy field
- Further reading
1. Status of the legislative process
After nearly two years of legislative process, EU institutions took the final legislative step for several of the law reforms in April 2023. the ETS revision, the introduction of a carbon border tax (CBAM) and the Social Climate Fund. These reforms can now be enacted.
EU institutions also , aiming to raise theEU's binding renewable target for 2030 to a minimum of 42.5%. Parliament and Council now have to offically greenlight this agreement.
Several other items are still being negotiated, such as the Energy Performance in Buildings Directive.
Find out more about the status of legislative items on the .
2. What happens, when and why?
The European Union has agreed on a more ambitious 2030 climate target and now aims to reduce greenhouse gas emissions by “at least 55” percent. However, setting a target is one thing, reaching it is another.
That is why the EU has embarked on a lengthy legislative journey to introduce new or adapted measures and instruments to bring down emissions. With , the European Commission has prepared proposals for law reforms it deems necessary for the bloc to reach the new target. It presented the first batch of drafts in July 2021 and the second batch in December.
The package is the starting point for member state governments (EU Council), the European Parliament and the European Commission to debate and decide a complete overhaul of EU energy and climate legislation over the coming months and years. The new climate target and the Fit for 55 package are key components of the bloc’s green growth strategy – the European Green Deal.
The European Parliament has debated key elements of the package in the first half of 2022 and is set to vote on some of those on 8 June: the EU Emissions Trading System (ETS) and with it the proposed new system for transport and buildings (ETS2), the Carbon Border Adjustment Mechanism (CBAM), the Effort Sharing Regulation (ESR), the Social Climate Fund (SCF) and the Land Use, Land Use Change and Forestry (LULUCF) Regulation.
Further plenary votes are envisioned for autumn 2022. The Council of member state governments has debated the package and adopted a position on some files, but others are yet to be decided - including many of the above-mentioned elements the Parliament votes on 8 June. The French Council presidency (first half of 2022) has said it aims to finish discussions on the CBAM and other elements by the end of its term, so member states could agree on a general position on several files at the Environment Council meeting on 28 June.
3. What is in the package?
The European Commission presented these elements of the package on 14 July. Some of them are reforms of existing regulation, others are new proposals.
- Revision of the EU Emission Trading System (EU ETS), including revision of the EU ETS Directive concerning aviation, maritime and CORSIA
- Revision of the Regulation on the inclusion of greenhouse gas emissions and removals from land use, land use change and forestry (LULUCF)
- Effort Sharing Regulation
- Amendment of the Renewable Energy Directive to implement the ambition of the new 2030 climate target
- Amendment of the Energy Efficiency Directive to implement the ambition of the new 2030 climate target
- ReFuelEU Aviation - sustainable aviation fuels
- FuelEU Maritime – green European maritime space
- Revision of the Directive on the deployment of alternative fuels infrastructure
- Amendment of the Regulation setting CO2 emission standards for cars and vans
- Carbon Border Adjustment Mechanism
- Revision of the Energy Tax Directive
- Climate Action Social Facility
On 15 December 2021, the Commission presented the second part of the package with these elements:
- Revision of the Energy Performance of Buildings Directive
- Revision of the regulation on the internal markets for renewable and natural gases and for hydrogen
- Directive on common rules for the internal markets in renewable and natural gases and in hydrogen
- Regulation on methane emissions reduction in the energy sector
Links to the Commission proposals from 2021
(including legislative proposals)
4. Key disputes to look out for
The Commission proposed to reform the existing EU ETS so that it leads to a 61 percent reduction in the covered sectors by 2030 (compared to 2005). Parliament is likely to demand more, as its environment committee proposed a 67 percent cut. In addition, the Commission aims to phase out the free allocation of emission allowances to aviation and to the sectors that are to be covered by the planned CBAM. This has been a major moot point, especially for industry.
Establishing emissions trading in transport and buildings (ETS2) – The Commission proposed to set up a second emissions trading system for these sectors, but several members states and parliamentary groups have criticised this plan. Germany has been a key supporter of the proposal. It introduced a carbon price for these sectors in 2021. A key criticism is that such a system would overly burden lower-income citizens, especially at a time when fuel prices are at record highs – a situation that is exacerbated by Russia’s war against Ukraine. European lawmakers agreed a compromise proposal, which would see private individuals exempted from the CO2 price for the foreseeable future.
The Commission has proposed that a quarter of the revenues from the new emissions trading system should fill the new so-called Social Climate Fund, which states would have to use to help citizens finance investments in energy efficiency, new heating and cooling systems or clean mobility. There have been many debates about what the Social Climate Fund should or should not finance, and if countries do not adhere to democracy and the rule of law. Should private citizens be exempt from the ETS2, less money would be available for the fund. NGOs and social groups that the funds should be used to help low-income households.
The Commission proposed that all new passenger cars must produce zero CO2 emissions at their tailpipe by 2035. There has been strong lobbying from some industry players to soften this and the interim targets for emissions from cars, for example by , arguing this would be climate neutral. The conservative EPP group in the European Parliament has sought to replace the de facto ban on fossil and diesel vehicles by 2035 with a 90 percent emissions reduction target. Parts of the German car industry – especially suppliers – have long fought to keep the combustion engine car alive.
5. Experts to contact for interviews and background, listed by policy field
The of European Commission will answer all questions on the package. The relevant contacts can be found below.
You can also get in touch with the responsible . In many cases this would be Thomas Haahr and Dana Popp who cover environment.
Most of the contacts listed below are EU-level experts. You can find more contacts in the factsheet Who sets the targets? Expert Q&A on European energy and climate policy.
If you are interested in the national view of a particular country, 91tv has put together a European climate and energy expert database. Here, you can find national contacts from member states and sort them by topic. Most countries are online already, others will be added soon.
You can also use the to find a female expert on EU policy.
Last but not least, you can always get in touch with the team at 91tv (info@cleanenergywire.org). We will provide information and connect you with the experts you are looking for.
GENERAL FIT FOR 55 PACKAGE
: Tim McPhie, Ana Crespo Parrondo
For political comment, you can contact the larger parties or groups in the European Parliament. Find the press contacts here.
Analysts & researchers:
(think tank):
(think tank):
: : Nils Meyer-Ohlendorf, Matthias Duwe
(FSR): media contact (Mariaclaudia.Carella@eui.eu)
, research professor environment & sustainable development, Institute for European Studies, Vrije Universiteit Brussel, and University of Eastern Finland
(25+ German research institutions on energy transition): press contact: Sarah Messina (ariadne-presse@pik-potsdam.de) will guide you to the right researcher
For an industry perspective, check with umbrella organisation Business Europe: press contact Sofiya Yevchuk (s.yevchuk@businesseurope.eu)
There are many environmental NGOs with expertise on the issue, such as:
(NGO): press team – Cristina Dascalu (cristina@caneurope.org), Nina Tramullas (nina@caneurope.org)
(DNR) (German NGO): (antje.mensen@dnr.de), EU climate & energy policy officer
CLIMATE
EU Emission Trading System (EU ETS), CO2 for cars, Effort sharing, LULUCF
: Tim McPhie
Energy Brainpool (consultancy): press contact: Lydia Bischof (lydia.bischof@energybrainpool.com)
, senior fellow at the German Institute for International and Security Affairs (SWP), lead author for Working Group III & member of the Core Writing Team for Synthesis Report IPCC
ICIS (commodity intelligence service): (florian.rothenberg@icis.com)
(financial markets data provider): – ,
The Potsdam Institute for Climate Impact Research (PIK): press contact: Jonas Viering (Jonas.Viering@pik-potsdam.de)
Clean Air Task Force Europe (advocacy/think tank): press contact: Rowan Emslie (remslie@cleanairtaskforce.org)
ENERGY
Renewable Energy Directive (RED), Energy Efficiency Directive (EED)
: Tim McPhie, Ana Crespo Parrondo
Bruegel (think tank): press contact
Ember (think tank): press contact
(RAP):
Energy industry groups:
European Renewable Energies Federation (EREF): press contact: Dirk Hendricks (dirk.hendricks@eref-europe.org)
WindEurope: press contact: Christoph Zipf (christoph.zipf@windeurope.org)
EUROSOLAR: contact: info@eurosolar.org
SolarPower Europe: press contact: Bethany Meban (b.meban@solarpowereurope.org)
European Biogas Association: press contact: Angela Sainz Arnau (sainz@europeanbiogas.eu)
Eurogas: press contact: Bronagh O’Hagan (bronagh.ohagan@eurogas.org)
Eurelectric: press contact: Ioana Petcu (ipetcu@eurelectric.org)
(EuroAce): info@euroace.org
European Alliance to Save Energy (EU-ASE): (media contact: matteo.guidi@euase.eu)
: Thomas Nowak, Secretary General (: Sarah Azau)
TRANSPORT
AFID, Maritime + Aviation fuel initiatives
: Stefan de Keersmaecker
Transport & Environment (think tank): press contact: sam.hargreaves@transportenvironment.org, eoin.bannon@transportenvironment.org )
International Council on Clean Transportation (ICCT) (think tank): Peter Mock (peter@theicct.org)
(ACEA) (interest group): press contact: communications@acea.auto
TAXATION
CBAM, Energy taxation Directive
: Daniel Sheridan Ferrie
(MIT): mmehling@mit.edu
(ERCST): Andrei Marcu acmarcu@ercst.org)
Institute for Energy Economics and Financial Analysis (IEEFA): Arjun Flora ()
For international implications: Bruegel (think tank):
6. Further reading
, by Reuters (7 June 2022)
, by European Parliament (1 June 2022)
(14 July 2021)
, website by European Commission
, by European Parliament
, website by EU Council (i.e. member state governments)
, in-depth Q&A on Commission proposal by Carbon Brief (20 July 2021)
, Bloomberg (14 July 2021)
, Reuters (14 July 2021)
, article collection by EurActiv
Energy transition in EU takes centre stage in quest for climate neutrality, dossier by 91tv (June 2021)
