EU governments and the European Parliament agreed in principle to a brand new legally binding climate deal, the ‘European Climate Law’, with a 55% target reduction in net greenhouse gas emissions by 2030, compared with 1990 levels, and zero net emissions by 2050.
It is believed the new law will impact greatly on the economy of industries such power, energy and transport as they will be subjected to stricter limitations.
The law will form part of a legislative ‘package’ to be announced in June, which outlines the EU’s aims for preserving the planet. It is expected to include:
- Strengthening and expanding the EU carbon market and setting more ambitious national targets in sectors not covered by the emissions cap-and-trade program
- Restoring European forests
- Increasing renewable energy and energy efficiency targets
- Tougher CO2 standards for cars
- Further deployment of alternative fuels infrastructure
- Higher taxation on most polluting fuels
- Full-fledged scheme for hydrogen certification
- Measure to impose a carbon price on some imported goods, or Carbon Border Adjustment Mechanism
- Curtailing the import of products that drive deforestation or forest degradation around the world
