European Commission Proposes a Landmark “Fit for 55” Package of Climate and Energy Legislation (1 in 4-Part Series)

Delivering a key component of the European Green Deal umbrella policy that it adopted in December 2019, the European Commission issued 15 legislative proposals, accompanied by three non-legislative communications in July 2021. With the supporting documents, e.g. impact assessments, the package adds up to around 4,200 pages. It includes the following initiatives:

(*) Amendment to the Renewable Energy Directive 2018/2001 (REDII) – increasing the overall binding target to 40% of renewables in the EU energy mix.
(*) Revision of the EU Emission Trading System (ETS) Directive 2003/87 and related laws – increasing greenhouse gas emissions reductions from covered sectors to 61% by 2030.
(*) Regulation establishing a carbon border adjustment mechanism (CBAM)
(*) Revision of the Market Stability Reserve (MSR) Decision 2015/1814 – maintaining that 24% rather than 12% of allowances are placed in the reserve after 2023.
(*) Revision of the Effort Sharing Regulation (ESR) 2018/842 – increasing the reduction target for covered sectors by 11 percentage points.
(*) Revision of Energy Efficiency Directive 2018/2002 (EED) – increasing the energy efficiency targets at EU level and making them binding.
(*) Revision of the Energy Taxation Directive 2003/96 – to align the minimum tax rates for heating and transport fuels with EU objectives, while mitigating the social impact.
(*) Amendment of ETS Directive 2003/87 – regarding aviation.
(*) Amendment of ETS Directive 2003/87 – regarding notifications under Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).
(*) Amendment of the Regulation 2019/631 setting CO2 emission standards for cars and vans – setting a 100% reduction target for new cars by 2035.
(*) Revision of the Alternative Fuels InfrastructureDirective (AFID) 2014/94 – ensuring the necessary deployment of interoperable and user-friendly infrastructure for recharging and refuelling cleaner vehicles.
(*) Revision of the Land Use, Land Use Change and Forestry (LULUCF) Regulation 2018/841 – setting higher ambitions for the expansion of natural carbon removals.
(*) Proposal for a Social Climate FundRegulation – providing dedicated funding to Member States to help citizens finance investments in energy efficiency, new heating and cooling systems, and cleaner mobility.
(*) Proposal for ReFuelEU AviationRegulation – promoting sustainable aviation fuel blends, as well as synthetic fuels, known as e-fuels.
(*) Proposal for FuelEU Maritime Regulation – to promote sustainable maritime fuels by imposing a maximum limit on the greenhouse gas content of the energy that ships use.

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