The EU’s upcoming “Fit For 55” package of measures, setting stricter and more ambitious objectives for a 55 percent carbon emission reduction by 2030, promises to bring about widespread change in the energy sector, impacting renewable energy, energy efficiency, the Emissions Trading System (ETS), energy taxation and forestry regulations.
National Energy and Climate Plans will need to be adjusted once the package comes into effect.
The package, whose details are planned to be presented by the European Commission on July 14, will, without a doubt, have an immediate impact on CO2 emission rights, seen rising even higher than yesterday’s new all-time high of 57.90 euros per ton, even though some time will be required before disagreements are overcome and the package is ratified in EU parliament.
“Fit For 55” has already prompted negative reaction from EU members states in the east.
The ETS is expected to apply to a greater number of sectors, the objective being to push CO2 emission right prices higher so that polluters are forced to reduce emissions rather than pay exorbitant amounts.
The RES sector’s representation in the EU energy mix, currently set at 32 percent for 2030, will be pushed higher to levels of between 35 and 40 percent, according to sources. Environmental organizations have been pressuring for an even more ambitious level of 50 percent.
Also, the measures will introduce transboundary taxes on non-EU countries regarded as making a lesser effort, than the EU, to combat climate change.
The new rules are also expected to reinforce Land use, land-use change, and forestry (LULUCF) regulations set by the UN Climate Change Secretariat.