We’ve put together a comprehensive glossary booklet to help you understand the jargon around EU climate policy. The first section covers general terms, the second one (from p. 21 onwards) proposal related terminology.
The proposal for a Methane Regulation seeks to address and mitigate emissions of the greenhouse gas known as methane across the EU’s energy sector, tying into the EU’s broader climate objectives. It would be the first EU legislative proposal of its kind, imposing a range of obligations on the oil, gas, and coal sectors in the EU. It sets obligations on energy companies to monitor, report and reduce methane emissions but does not set reduction targets.
The legislative proposal seeks to find a middle ground between guaranteeing competition and encouraging private investment through a hybrid regulatory approach (market and non-market mechanisms). Regulatory principles utilised in gas and electricity markets can not be transposed onto hydrogen markets, and cross-subsidisation is not a viable long-term option. Market volatility means higher or possibly inaccessible costs to consumers. The proposal seeks to address this by adopting an integrated EU-wide approach to storage.
By Clarice Agostini In May and June 2022, the plenary of the European Parliament will vote on the key elements of the Fit for 55 package of energy and climate legislation. Before that, the individual lead committees will vote on the proposals. Here are the proposals that are most relevant to the objectives of the...
Expanding the EU-ETS to cover the sectors of building, maritime and road transport is essential to meet the EU’s enhanced climate ambitions. Phasing the sectors in progressively allows for adjustments. The regressive effects of carbon pricing, especially in road transport and buildings, require countermeasures to ensure social acceptability.
The UK’s net zero strategy builds upon the Climate Change Act of 2008 and the 2020 Ten Point Action Plan The UK sets an indicative delivery pathway, aligned with carbon budget 6 (2033-2037), to achieve Net Zero by 2050 The strategy outlines how the UK intends to reach net-zero emissions across eight sectors of the economy.
Emissions trading schemes (ETS) incentivize polluters to reduce CO2 emissions through carbon pricing. ETS in China, South- Korea, Switzerland, the UK and California tend to target energy-intensive industries and can cover up to 80% of all greenhouse gas emissions. Most ETS, excluding South Korea, make polluters pay for the majority of their emissions by obliging them to buy a permit (rights) to emit more CO2 than the baseline, thereby encouraging green investment.
The colour code tells you which energy type was used to produce the hydrogen in gas form. Currently 95% of hydrogen is based on fossil fuels (grey hydrogen) still leading to high CO2 emissions. To make hydrogen a sustainable source of energy it must be produced by renewable energy (green hydrogen). However, huge investment in green hydrogen production is necessary to scale-up green hydrogen in the amount needed for the Green Transition.