HE European Parliament This Tuesday it completed the official approval of three other key parts of Fit for 55, the legislative package the European Union seeks to reduce human consumption. polluting emissions Achieving carbon neutrality of 55% by 2030 (vs. 1990) and by 2050: reform of the emissions trading regime, including the maritime and aviation sector, new carbon cap adjustment mechanism and new social climate fund, to compensate the most vulnerable consumers. This new legislation will force electricity producers and major polluters to reduce their emissions by 62% by 2030 compared to 2005; and first cap tax on carbon.
The interim political agreement between the European Parliament negotiators and the Council was closed at the end of December. After two years of intense negotiations and the approval of the plenary, the final step will be the Council’s formal approval in the coming weeks. HE emissions trading plan This main tool It is used by the EU to reduce CO2 emissions, based on a system of maximum amounts and an exchange of rights between major energy consuming sectors. So far, it covers around 40% of total EU CO2 emissions, while emissions have fallen by 41% since its launch in 2005.
The new regulation, which was passed with 413 votes in favor, 167 against and 57 abstentions, will make it possible to further reduce and increase the ambition by expanding the scope to include other sectors. aviation and sea transport. The aim is to phase out free emission permits for the aviation industry by 2026 at the latest and to promote the use of sustainable fuels. In addition, electricity producers and major polluters will be obliged to reduce their pollution by 62% by 2030. The standard includes a two-year global maximum emission limit of 90 and 27 million emissions, respectively, and increases the reduction percentage of emissions. Maximum limit of 4.3% per year from 2024 to 2027 and 4.4% from 2028 to 2030. market.
area facilities free assignments they will have to comply with conditionality requirements such as energy audits and, in the case of certain facilities, climate neutrality plans. The agreement also includes a commitment to evaluate and submit a report by mid-2026 on the final inclusion of Brussels’ municipal waste incineration sector into the regime from 2028. In addition, under certain conditions and in some Member States, additional temporary free allowances may be granted to the district heating sector to encourage investments in decarbonisation; this is a controversial issue due to fears that the policy will have a disproportionate impact on vulnerable households.
Support for sensitive digits
To avoid this scenario, the fix is also a new Social Climate Fund It will be available from 2026 and will be financed through emission rights auctions up to a maximum of 65,000 million. Adopted with 521 votes in favour, 75 against and 43 abstentions, the fund will be created for the period 2026-2032 and will require Member States to contribute 25% co-financing from their own budgets at national level. current amount to 87,000 million).
The puzzle is completed with its creation. world’s first carbon cap taxin your name Carbon Limit Adjustment MechanismThat the EU aims to protect European companies from harm, while also encouraging third countries to step up their claims on climate targets. The mechanism adopted with 487 votes in favor, 81 against and 75 abstentions will apply to products such as: iron, steel, cement, aluminum, fertilizer, electricity and hydrogenand, in certain cases, indirect emissions. Importers of these products will have to pay the difference between the carbon price paid in the country of manufacture and the price of the carbon allowances in the emissions trading scheme. The tax will be applied gradually from 2026 to 2034, at the same rate as the phasing out of free benefits in the EU.