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.
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.
The revenues generated by the EU ETS will be used to help industries and states across the EU reach carbon-neutrality The Innovation Fund is providing financial support for the development of highly innovative technologies that can drive down emissions The Modernisation Fund will support low-income EU Member States in their energy transition
Aviation emissions have increased significantly in the EU, despite intra-EEA flights being included in the EU Emissions Trading System (ETS) since 2012. The revision proposes several changes such as the end of free allocation and a stronger decline of the ETS cap. CORSIA is an international mechanism to address aviation emissions, but has several flaws that threaten to severely diminish its effectiveness.
The current ETD is based on volume of fuels, rather than their energy content or impact on the environment. By default this favours fossil fuels. Instead, the revised ETD is based on the content of energy products.The revised ETD expands its regulatory scope to include aviation, shipping and fishing.The new proposal taxes polluting fuels more than cleaner fuels.
In July 2021, the European Commission presented the FuelEU maritime initiative within its Fit for 55 package measures aiming to address maritime transport emissions by addressing market barriers that hamper their use and uncertainty about which technical options are market-ready. Maritime transport is critical to the European Union’s (EU) economy but the EU estimates that maritime carbon emissions account for almost 4% of total EU emissions (and for 11% of EU transport emissions)Maritime stakeholders expressed concerns that the regulation puts responsibility on shipping companies (not on the fuel producers); that the efficiency standard is not defined at the fleet level; and that they did not want any obligation on the choice of fuel and technology.
The ReFuel EU Aviation proposal offers targets for sustainable aviation fuel (SAF) and synthetic aviation fuels from 2025 to 2050 The policy proposal safeguards competitiveness in the air transport industry while ensuring that CO2 emissions linked to fuel in the aviation sector may be reduced by circa 60-61% by 2050 compared to the baseline year The emergence of SAF on the market would lead to a dramatic decline in the reliance of aviation on fossil jet fuel, leading to a 65% reduction of the latter by 2050
As the climate emergency becomes increasingly acute, the European Union aims to become the first carbon-neutral economy by 2050. The ecological transition, however, is not cost-free and comes with several challenges that need to be addressed in order to ensure the social and economic welfare of the Union’s citizens.This article will look at the Social Climate Fund, an initiative proposed by the EU Commission whose main goal is to alleviate the potential costs that the implementation of the new ETS could bring to low-income and vulnerable households [1].
The revised proposal makes significant progress in terms of expanding the scope of the Directive. RED is responsible for driving unsustainable demand for biomass as a feedstock for biofuels.