“Fit for 55”
EU negotiates the heart of the climate package
The EU Commission under Ursula von der Leyen wants to reduce the number of pollution rights more quickly and set up a climate social fund of up to 144.4 billion euros by 2032. Photo
© Jean-Francois Badias/AP/dpa
Important parts of the EU climate package are being negotiated. Among other things, it is about the fact that CO2 emissions have to be paid for more frequently. Delicate talks are brewing in the coming days.
The EU could take a big step in the fight against climate change this weekend. Negotiations between the EU Parliament and the states on a reform of European emissions trading and a fund to support consumers during the energy transition began on Friday. “Now it’s about everything,” said Green MP Michael Bloss, who is taking part in the negotiations. “We have to save more CO2 to comply with the Paris climate agreement and that’s what we’re fighting for.”
In view of difficult talks, however, it is still unclear whether an agreement can be reached. “Such an agreement is far from guaranteed,” wrote French MEP Pascal Canfin, who is leading the talks, on Twitter. A deal is expected on Sunday night at the earliest.
In order to reduce greenhouse gases, the so-called emissions trading system (ETS) was set up in 2005. Certain companies have to pay if they emit climate-damaging gases such as carbon dioxide (CO2). This is a strong incentive to avoid emissions.
Dispute about the date of the certificate expiration
In 2021, the EU Commission proposed reducing the number of pollution rights more quickly and gradually phasing out free certificates for companies. However, Parliament and the states disagree on how quickly this should happen. Parliament wants the certificates to expire in 2032 – the states are pushing for 2035. From this point on, producers abroad should also pay for CO2 emissions if they want to sell their goods in the EU – through a so-called CO2 border adjustment . Negotiators had already agreed in principle on this mechanism at the beginning of the week.
Emissions trading is also to be extended to heating buildings and transport, so that emissions would have to be paid for here as well. However, this is controversial, critics fear higher energy costs for consumers. Therefore, Parliament wants the ETS to initially only apply to commercial buildings and transport, while countries want to introduce it for all. In Germany, emissions trading already applies to all buildings and traffic.
How big will the climate social fund be?
Another sore point is the so-called climate social fund, which is intended to absorb higher costs for consumers due to the energy transition – such as rising heating costs. This is intended to relieve households and finance investments, for example in more efficient buildings. The fund is to be fed, for example, by income from emissions trading. The EU Commission wants a fund of up to 144.4 billion euros by 2032. The EU Parliament is in favor of around half. The EU countries are for an even smaller pot of around 59 billion euros. Germany in particular had advocated downsizing.
The projects are part of the European Commission’s “Fit for 55” package. It aims to help EU countries reduce CO2 emissions by 55 percent by 2030 compared to 1990 levels and become carbon neutral by 2050.