EU finalises Fit for 55 climate package ahead of COP28

The legislation features the revised Renewable Energy Directive and the ReFuelEU Aviation Regulation, creating legally binding climate targets across all crucial sectors of the economy. Notably, it introduces the Carbon Border Adjustment Mechanism, making imported goods subject to an equivalent carbon price. Other measures include phasing out polluting vehicles by 2035, augmenting charging infrastructure, and promoting the use of alternative fuels in various modes of transport, the European Commission said in a press release.

Initially tabled in July 2021, the ‘Fit for 55’ package has been updated to reflect increased goals on renewable energy and energy efficiency, particularly in response to Russia’s invasion of Ukraine. The final package aims to reduce the EU’s net greenhouse gas emissions by 57 per cent by 2030, exceeding the initial target of 55 per cent.

The newly established Social Climate Fund will allocate €65 billion from the EU budget to support vulnerable citizens and small businesses during the green transition. Member states will also spend 100 per cent of their emissions trading revenues on climate and energy-related projects. Additionally, the legislation outlines new targets for renewable energy and energy efficiency. By 2030, at least 42.5 per cent of the EU’s energy should come from renewable sources, up from the current 32 per cent target.

As the legislation begins its implementation phase in member states, dialogue continues among citizens, industries, and policymakers on the European Green Deal’s future. While the ‘Fit for 55’ package forms a core part of this strategy, additional legislative files and proposals are under discussion to supplement it, including energy, circular economy, and pollution laws. The commission is urging member states to expedite negotiations on the yet-to-be-finalised Energy Taxation Directive.

Fibre2Fashion News Desk (NB)