Energy Union and Climate Action: Driving Europe’s transition to a low-carbon economy

The Commission is working to keep the EU competitive as the global social economic model changes following the impetus to move towards a modern and low-carbon economy set by the Paris Agreement on climate change. The new proposals set clear and fair guiding principles to Member States to prepare for the future and keep Europe competitive. This is part and parcel of the Energy Union and a forward-looking Climate Change policy.

In 2014 the EU agreed to a clear commitment: to collectively reduce greenhouse gas emissions of at least 40% by 2030 compared to 1990 levels across all sectors of the economy. The new proposals present binding annual greenhouse gas emissions targets for Member States from 2021-2030 for the transport, buildings, agriculture, waste, land-use and forestry sectors as contributors to EU climate action (see Fact sheet MEMO/16/2499 and Fact sheet MEMO/16/2496). The new framework is based on the principles of fairness, solidarity, cost-effectiveness and environmental integrity. All Member States are concerned, as they will be in the forefront in deciding how to implement the measures to meet the agreed 2030 target. The Commission is also presenting a strategy on low-emission mobility setting the course for the development of EU-wide measures on low and zero-emission vehicles and alternative low-emissions fuels (see Fact sheet MEMO/16/2497).

Vice-President in charge of the Energy Union Maroš Šefčovič said:"The Energy Union is delivering. With the proposed reform of the Emissions Trading System last year and today's proposal on greenhouse gas emissions targets for Member States, we anchor the 2030 Energy and Climate framework in legislation. We are also setting our transport system firmly on the path towards zero-emissions. Today's package shows that we are mobilising all our policies towards the competitive, circular and low-carbon economy that we promised in the Energy Union Strategy".

In the EU, efforts have already started to align private investments with climate and resource-efficiency objectives. The EU financial instruments are significant contributors to climate funding. Over 50% of the investments approved so far are climate relevant. As part of the Investment Plan for Europe, the European Fund for Strategic Investments is on track to deliver on mobilising at least EUR 315 billion in additional investment in the real economy by mid-2018. In addition, the Commission actively works to ensure that the EU budget spending is aligned with climate objectives. At least 20% of the current EU budget is explicitly climate related.

Background

In October 2014, the Heads of State or Government of the EU set a binding economy-wide domestic emissions reduction target of at least 40% by 2030 compared to 1990. All sectors of the economy should contribute to achieving these emission reductions. To do so in a cost-effective manner, the industrial and power sectors covered by the EU Emissions Trading System (ETS) will need to reduce emissions by 43% by 2030 compared to 2005. Other sectors of the economy as transport, buildings, agriculture, waste, land-use and forestry would need to reduce emissions by 30% by 2030 compared to 2005.

Together with last year's proposal for the revision of the EU Emission Trading System (ETS) and the new climate-related legislative proposals will steer Europe's low-carbon transition and respond to the commitments made by the European Union countries under the Paris Agreement on climate change. The Commission will start working on the Action Plan on low-emission mobility to present the remaining initiatives without delay. By the end of the year, the Commission intends also to present further initiatives on renewables, energy efficiency and internal energy market which form part of the Energy Union Strategy.

Source: ec.europa.eu