ZEI Monitor: EU Progress 2019-2024

Fit for 55 package

• a) Revision of the EU Emissions Trading System (ETS), including maritime, aviation and CORSIA as well as a proposal for ETS as own resource (legislative, incl. impact assessment, Q2 2021)
  
  b) Carbon Border Adjustment Mechanism (CBAM) and a proposal for CBAM as own resource (legislative, incl. impact assessment, Q2 2021)
  
  c) Effort Sharing Regulation (legislative, incl. impact assessment, Article 192(1) TFEU, Q2 2021)
  
  d) Amendment to the Renewable Energy Directive to implement the ambition of the new 2030 climate target (legislative, incl. impact assessment, Article 194 TFEU, Q2 2021)
  
  e) Amendment of the Energy Efficiency Directive to implement the ambition of the new 2030 climate target (legislative, incl. impact assessment, Article 194 TFEU, Q2 2021)
  
  f) Revision of the Regulation on the inclusion of greenhouse gas emissions and removals from land use, land use change and forestry (legislative, incl. impact assessment, Article 192(1) TFEU, Q2 2021)
  
  g) Reducing methane emissions in the energy sector (legislative, incl. impact assessment, Articles 192 and 194 TFEU, Q2 2021)
  
  h) Revision of the Energy Tax Directive (legislative, incl. impact assessment, Q2 2021)
  
  i) Revision of the Directive on deployment of alternative fuels infrastructure (legislative, incl. impact assessment, Article 91 TFEU, Q2 2021)
  
  j) Revision of the Regulation setting CO2 emission performance standards for new passenger cars and for new light commercial vehicles (legislative, incl. impact assessment, Article 192(1) TFEU, Q2 2021)
  
  k) Revision of the energy performance of Buildings Directive (legislative, incl. impact assessment, Article 194 TFEU, Q4 2021)
  
  l) Revision of the Third Energy Package for gas (Directive 2009/73/EU and Regulation 715/2009/EU) to regulate competitive decarbonised gas markets (legislative, incl. impact assessment, Article 194 TFEU, Q4 2021)

Circular economy package

• a) Sustainable products policy initiative, including a revision of the Ecodesign Directive (legislative, incl. impact assessment, Article 114 TFEU, Q4 2021)
  
  b) Circular electronics (non-legislative, Q4 2021)

Common Agricultural Policy: Biodiversity and toxic-free environment package

a) Action plan for the Development of Organic Production - on the way to 2030 (non-legislative):  On the 25th of March 2021, the Commission published an Action plan to promote organic products. (Press release)

Goal: With the help of this action plan, at least 25 per cent of the agricultural land in the EU is to be farmed organically by 2030 and a significant increase in organic aquaculture is to be achieved. To accomplish the goal, the Commission wants to encourage more farmers to cultivate sustainably and, as a result, to promote the consumption of organic food. 

Implementation: To achieve the goals, all member states shall develop national strategies. In doing so, member states are expected to explain how they will contribute to achieving the EU-wide goals. Member states will be supported in the process by the Commission and progress will be monitored.

Timeframe: The action plan is set up for the years 2021 to 2027. During this period, 23 measures are to be implemented to achieve the targets. In spring 2021, the Commission aims to present new strategic guidelines for the sustainable development of EU aquaculture.

Origin: The Action Plan was already announced in the May 2020 Farm to Fork-Strategy and the Biodiversity Strategy and is part of the European Green Deal. The action plan is a continuation of the previous Action plan for the period 2014-2020.

The action plan is divided into three main areas:

1. Promotion of consumption

Upcoming Commission initiatives:

b) Minimising the risk of deforestation and forest degradation associated with products placed on the EU market (legislative, incl. impact assessment, Q2 2021)

c) Zero pollution action plan for water, air and soil (non-legislative, Q2 2021)

d) New legal framework on the restoration of healthy ecosystems (legislative, incl. impact assessment, Article 192 TFEU, Q4 2021)

Sustainable and smart mobility

• a) Revision of the Directive on Intelligent Transport Systems, including a multimodal ticketing initiative (legislative,incl. impact assessment, Article 91 TFEU, Q3 2021)
  
  b) Revision of the Regulation on the trans-European transport network (TEN-T) (legislative, incl. impact assessment, Article 172 TFEU, Q3 2021)
  
  c) EU 2021 Rail Corridor Initiative, including the revision of theRail Freight Corridor Regulation and actions to boost passenger rail (non-legislative and legislative, incl. impact assessment, Article 91 TFEU, Q3 2021)
  
  d) Development of post-Euro 6/VI emission standards for cars, vans, lorries and buses (legislative, incl. impact assessment, Article 114 TFEU, Q4 2021)

The European Green Deal

• Strategy for Offshore Renewable Energy: On 19th of November 2020, the European Commission presented a Communication for a strategy for offshore renewable energy, proposing to increase Europe's offshore wind capacity from 12 GW at present to at least 60 GW by 2030 and to 300 GW by 2050. The Commission estimates that investments of almost 800 billion euro will be needed by 2050 to achieve the targets it has proposed. The Commission plans to ensure that the revision of the energy and environmental state aid guidelines and the Renewable Energy Directive will facilitate the cost-effective use of offshore renewable energy. (Press release)

• Methane Strategy: On the 14th of October 2020, the European Commission adopted a methane strategy  to reduce greenhouse gas emissions. (Press release)
  

As the second biggest contributor to climate change after carbon dioxide, reducing methane gas emissions is essential for achieving the EU's goal of climate neutrality by 2050. The Commission plans to work with the EU's international partners and industry to cut emissions along the supply chain. Therefore, the EU's methane strategy will focus on more accurate measurement and reporting of methane emissions (1) and the introduction of effective measures to reduce them (2):

(1) Measurement and reporting

• The Commission will propose EU legislation on mandatory measurement, reporting and verification for all methane emissions
• Improving the measurement of reporting of methane emissions by companies (including through sector-specific initiatives)
  
• Satellite-based detection of super emitters by the EU's Copernicus program
  
• Support the establishment of an international methane emissions observatory with the United Nations, including a methane emissions index
  

(2) Emission reduction measures

• Support to accelerate the development of the market for biogas from sustainable sources (including pilot projects for rural and agricultural communities)
• Reducing emissions from agriculture by promoting the best practices and technologies, changes in feed and animal husbandry, and climate-efficient agriculture
  
• A commitment to improve the leak detection and repair (LDAR) in the entire fossil gas infrastructure (in its production, transport and use)
  
• Present possible future legislation on gas, venting and flaring and standards for the entire supply chain and support the World Bank's "Zero Flaring" initiative to eliminate flaring
  
• Review of the directives on landfills, urban wastewater treatment and sewage sludge

• Strategy for the Integration of Energy Systems: On the 8th of July 2020, the European Commission also presented a "Strategy for Energy System Integration". It rests on the following three pillars:

First, a more "cycle-oriented" energy system, of which energy efficiency is a central component. The strategy sets out concrete measures for the practical application of the "energy efficiency first" principle and for more effective use of local energy sources in buildings or communities. Significant potential is offered by the reuse of waste heat from industrial plants, data centers or other sources, and energy recovery from biowaste or sewage treatment plants. The "renovation wave" will be an important part of these reforms.

Second, more direct electrification of the end-use sectors. As the share of renewable energy is highest in the electricity sector, the EU should, if possible, make increasing use of electricity, for example for heat pumps in buildings, electric vehicles in transport or electric stoves in certain industries. A network of one million charging stations for electric vehicles should be among the visible results, along with the expansion of solar and wind power.

Third, for those sectors where electrification is difficult, the strategy proposes the use of 'cleaner fuels' such as renewable hydrogen, sustainable biofuels and biogas. The Commission plans to propose a new classification and certification system for renewable and low-carbon fuels.

• Hydrogen Strategy: On the 8th of July 2020, the European Commission presented a "Hydrogen Strategy for a Climate Neutral Europe". It drafts a three-stage roadmap with expansion targets:
  
  1. from 2020 to 2024 the European Commission wants to support the installation of electrolysers with an electrolysis capacity of at least 6 gigawatts and the production of up to 1 million tons of renewable hydrogen.
  
  2. from 2025 to 2030, hydrogen is to become an essential part of the EU's integrated energy system by installing electrolysers for the production of renewable hydrogen with an electrolysis capacity of at least 40 gigawatts and by producing up to 10 million tons of renewable hydrogen.
  
  3. between 2030 and 2050, renewable hydrogen technologies should be mature and widely deployed in all sectors where decarbonization is difficult.
  
  (Press release)

• Legislative Proposal: On the 4th of March 2020, the European Commission put forward a Regulation Proposal for the first European Climate Law which aims to write into law the goal set out in the European Green Deal – for Europe’s economy and society to become climate-neutral by 2050. Union-wide emissions and removals of greenhouse gases regulated in Union law shall be balanced at the latest by 2050, thus reducing emissions to net zero by that date. The Commission is empowered to adopt delegated acts in accordance with Article 9 of this Regulation to supplement this Regulation by setting out a trajectory at Union level to achieve the climate-neutrality objective set out in Article 2(1) of the Regulation until 2050. (Press release)

• On the 11th of December 2019, the European Commission published a Communication on the European Green Deal with which it aims to provide a Roadmap with actions to boost the efficient use of resources by moving to a clean, circular economy and stop climate change, revert biodiversity loss and cut pollution. It outlines investments needed and financing tools available, and explains how to ensure a just and inclusive transition.

Financing the sustainable transition

• Legislative Proposal: On the 14th of January 2020, the European Commission presented a Proposal for a Regulation establishing the Just Transition Fund (‘JTF’) within the field of cohesion policy to provide support to territories facing serious socio-economic challenges deriving from the transition process towards a climate-neutral economy of the Union by 2050.

Sustainable production and consumption

Protecting our environment

• General Union Environment Action Programme: On the 14th of October 2020, the European Commission put forward a Proposal for a Decision on a General Union Environment Action Programme to 2030. The Proposal sets out a general action program in the field of the environment for the period up to 31 December 2030 (‘8th  EAP’). The overarching aim of the 8th EAP is to accelerate the Union’s transition to a climate-neutral, resource-efficient clean and circular economy in a just and inclusive way and achieve the environmental objectives of the United Nations’ Agenda 2030 and its Sustainable Development Goals, fully endorsing the environmental and climate objectives of the European Green Deal. The European Parliament and the Council are supposed to adopt the 8th EAP in the course of 2021.

Achieving the priority objectives of the 8th EAP will require an effective integration of environmental and climate sustainability in the European Semester of economic governance, including in the National Reform Programmes and National Recovery and Resilience plans; Phasing out environmentally harmful subsidies at Union and national level, making the best use of market-based instruments and green budgeting tools. The Commission, supported by the European Environment Agency and the European Chemicals Agency,  shall assess and report on the progress of the Union and the Member States with regard to achieving the priority objectives.

Sustainable and smart mobility