This knowledge hub includes thought leadership from the Corporate Leaders Group Europe on the “Fit for 55” package of EU emissions reduction legislation aimed at achieving net 55% greenhouse gas emissions reduction by 2030. This new package has the potential to deliver deep transformations across the EU’s energy systems, housing, mobility and industry using the Green Deal as its blueprint. |
In October 2014, the European Council adopted the 2030 climate and energy framework which includes EU-wide targets for cutting greenhouse gas emissions (GHG) and increasing the share of renewable energy and energy efficiency for the period from 2021 to 2030. This included a target for at least 40 per cent cuts in greenhouse gas emissions (from 1990 levels) by 2030, which was also translated into the first EU’s first nationally determined contribution (NDC) under the Paris Agreement.
Much has changed since these first 2030 targets were first agreed. In response to evolving climate science and further to the EU’s long-term strategy to be climate neutral by 2050, the EU agreed a legally binding target of a net 55% greenhouse gas reductions by 2030 in its Climate Law. On 14 July, the EU presented the “Fit for 55 Package” which is a comprehensive and far-reaching review of the EU’s energy and climate related legislation covering the Emissions Trading System, a new Carbon Border Adjustment Mechanism, Effort Sharing between Member States, Renewable Energy, Energy Efficiency, Land Use, Land Use Change and Forestry (LULUCF), Energy taxation, new rules on Aviation and Maritime Fuels, Alternative Fuels Infrastructure Directive, CO2 emissions standards for cars and vans, a new Social Climate Fund linked to proposals to extend the ETS to buildings and transport and a new Forests Strategy. Later this year a review of the Energy Performance of Buildings is also expected as well as a review of the gas package.
Now, the package goes to the European Parliament and the Council for negotiation and adoption. It will be critical for EU leaders to seize the opportunity to deliver this key legislation as soon as possible and ensure that it is a coherent and effective set of measures to tackle climate change.
Key outputs
“We have the chance to truly reconstruct a better future, and while doing it, we need to ensure that the recovery measures taken today are not at the cost of our planet. It is now more important than ever that companies and governments show leadership standing by their commitments in climate action, and that we take responsibility together.”
Helena Helmersson, CEO, H&M Group
“Europe´s leadership on climate action will be enhanced with a robust and coherent “Fit for 55%” policy package, which can create optimism for the whole world. The correct policy signals will give investors the certainty needed to accelerate the transition towards a net zero economy, by unlocking significant investment in renewable energy, networks, storage and forward looking industries, such as green hydrogen. Ambitious climate policies will also drive the economic recovery.”
Ignacio S. Galán, Chairman & CEO, Iberdrola
“Salesforce welcomes climate legislation that is science-based and facilitates a just transition to a 1.5°C future. The Fit for 55 package must bring together Europe’s climate ambition and growth strategy to enable economic resilience and create a more equal society, while putting us on the necessary pathway to net zero.”
Gavin Patterson, President & Chief Revenue Officer, Salesforce
“Together, we have committed to build a growing, inclusive, net-zero economy. This can only be delivered in partnership - with ambitious climate action from business matched by ambitious public policy frameworks.”
Alan Jope, CEO, Unilever
