MEPs adopted a position on three crucial EU draft laws to combat climate change.
After a plenary debate held on 7 June 2022, the Parliament adopted its position on three key EU laws that are part of the ‘Fit for 55’ until 2030 on 22 June. The purpose of adopting this position was to cut greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels, and to reach zero greenhouse gas (GHG) emissions (climate neutrality) by 2050, in line with the European Climate Law.
The first draft law within the ‘Fit for 55’ package deals with reforming the emission trading system (ETS) with the aim of accelerating the cancellation of allocating free emission units to the industry sector, while the citizens will be included in the reform at a later date. The Parliament wants to encourage industries to further cut down emissions and invest in low-carbon technologies.
The second draft law concerns extending the scope and accelerating the implementation of the new instrument to prevent carbon leakage. The Parliament requires this mechanism to be introduced earlier and to cancel free units in the emission trading system by 2032. The Parliament also requires extending the scope of the law to include organic chemicals, plastics, hydrogen, ammonia, as well as indirect emissions.
The third draft law concerns the creation of a new social climate fund to help citizens cope with the increased costs of the energy transition.
The Fund should support measures to cut excise taxes and fees on fuel, in order to absorb the rising road transportation fuel prices and heating power sources. Furthermore, the purpose of the fund is to invest in buildings renovation and renewable energy sources, as well as to shift from private to public transport, car-pooling, etc.
More on the topic at: European Parliament