As more and more Fit-for-55 legislations are progressing through the EU legislative process, the first batch of new EU legislations have been formally published in the Official Journal of the European Union and are now EU law:
- The new ETS revision, which sets new rules and deadlines on ETS quotas as well as specific incentives for some CCU pathways.
- The rules for ETS aviation, planning the phasing out of ETS free for aviation: 25% in 2024, 50% in 2025, and 100% from 2026; and the creation of financial mechanisms to support the transition of aviation towards sustainable aviation fuels.
- The Carbon Border Adjustment Mechanism, which creates a carbon tax for products made outside Europe (cement, iron, steel, aluminium, fertiliser, electricity, hydrogen) with the aim to make sure there is no carbon leakage.
- The Social Climate Fund, is designed to mitigate the social impact of the revised ETS system, especially in the building and transport sector.
The Fit-for-55 package is a set of proposals aimed at revising and updating EU legislation, as well as implementing new initiatives, to align EU policies with the climate goals established by the Council and the European Parliament. “Fit-for-55” refers to the EU’s target of reducing net greenhouse gas emissions by at least 55% by 2030. The proposed package aims to ensure that EU legislation is in line with this target.
More EU legislations are expected to be adopted and published in the coming weeks and months. We will keep you updated on these developments.