The European Parliament adopted the main directives and regulations from the “Fit for 55” package at first reading on Tuesday. by 2030 (compared to 1990) and climate neutrality by 2050. the reform of the EU Emissions Trading System (EU ETS) and the new Boundary Carbon Mechanism (CBAM). The Social Climate Fund (SCF) was also established. Europeans have been treated to an expensive energy transformation – stressed MEP Beata Szydło in the debate.
Reform of the emissions trading system
The reform of the emissions trading system was approved by 413 votes to 167 (57 abstentions). Sectors already covered by the scheme are expected to reduce greenhouse gas emissions by 62% by 2030. compared to the level in 2005. The reform also assumes the gradual withdrawal of free allowances in the years 2026–2034. In addition, there will be a separate ETS II system for fuels used in road transport and for heating buildings. According to the system, the EU will introduce levies on greenhouse gas emissions from these sectors in 2027 (or 2028 if energy prices are exceptionally high).
Parliament also voted for the first time to include greenhouse gas emissions from the shipping sector in the ETS (500 votes in favour, 131 against, 11 abstentions). MEPs also agreed to the revision of the EU ETS for aviation (463 votes in favour, 117 against, 64 abstentions). This paves the way for the abolition of free allowances in this sector in 2026.
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Price Adjustment Mechanism
Another regulation, adopted by 487 votes to 81 (75 abstentions), concerns the provisions on the new EU mechanism for adjusting prices at borders taking into account CO2 emissions (CBAM).
It is intended to encourage non-EU countries to increase their climate ambitions. It will also help avoid undermining EU and global climate action, which happens when production is moved from the EU to countries with less restrictive climate regulations.
– we read in a communiqué published by the EP.
The new CBAM will cover raw materials such as iron, steel, cement, aluminum, fertilizer, electricity and hydrogen. Importers of these goods will have to pay the difference between the emission tax in the country of production and the price of emission allowances in the EU ETS. CBAM will be phased in from 2026 to 2034 as free ETS allowances are phased out.
Social Climate Fund
Parliament also supported (521 votes in favour, 75 against and 43 abstentions) the creation of an EU Social Climate Fund in 2026. The aim is “to ensure a just and inclusive climate transition”. The fund will benefit vulnerable households, micro-enterprises and transport users “particularly affected by energy and transport poverty”.
The texts of the regulations must now be approved by the Council of the EU, or the member states.
Expensive energy transformation
Europeans have been treated to an expensive energy transformation
– said the former Prime Minister of the Republic of Poland, and currently PiS MEP Beata Szydło, in an earlier debate.
Especially now that the crisis caused by the war in Ukraine is raging, it is a mistake to accelerate the energy transformation and use the arguments “faster is better”. First, it is more expensive
– said Beata Szydlo.
As she noted, the cost of transformation will be borne by Europeans.
Therefore, it was necessary to create a Social Fund to assist and support enterprises and households
stressed the MEP. As the former prime minister said, the funding principles of the fund raise doubts because it must be created primarily from new own resources of the European Union, but also from new own resources created on the basis of the ETS.
What does it mean? That the Europeans who will become beneficiaries of this fund will actually contribute to it
she noted.
The Polish politician concluded that the whole idea of supporting citizens financially, once the decision to accelerate the transformation is made, is necessary, but certainly not on the terms proposed in the discussed document.
Buzek happy with the solutions
Jerzy Buzek, Prime Minister of the Republic of Poland in the years 1997-2001 and currently a PO MEP, is satisfied with the solutions adopted.
Thanks to our efforts, we managed to improve the transparency of the operation of the ETS, which was an important postulate of the Polish energy and heating industry, among others. We are increasing the role of the European Securities and Markets Authority (ESMA) in monitoring ETS market participants. This will allow a more effective fight against speculative activities that have a negative impact on the prices of allowances and, as a result, on the electricity or heating bills paid by consumers.
noted Buzek.
wkt/PAP
Source: wPolityce