Top EU official proposes new 2030 target to reduce emissions

17 Sep, 2020 09:19
source: Singularity Financial

Singularity Financial Hong Kong September 17, 2020 – The European Commission has announced a new ambitious target to cut carbon emissions by 55% by 2030, up from an original target of a 40% reduction over the same timeline.

The news follows a letter, sent by 170 European business leaders and investors to EC president Ursula von der Leyen, demanding this new target of a 55% reduction over the next decade be set.

It also echoes demands by influential investor group Climate Action 100+ ,which has recently written to 161 companies asking to set a medium-term objective to cut emissions by 45% by 2030 compared to 2010 levels.

The 2030 climate and energy framework includes EU-wide targets and policy objectives for the period from 2021 to 2030.

Key targets for 2030:

1) At least 40% cuts in net greenhouse gas emissions (from 1990 levels) – proposed to be increased to at least 55%

2) At least 32% share for renewable energy

3) At least 32.5% improvement in energy efficiency

The framework was adopted by the European Council in October 2014. The targets for renewables and energy efficiency were revised upwards in 2018.

Greenhouse gas emissions – raising the ambition

EU leaders agreed in 2014 on a binding target to cut emissions in the EU by at least 40% below 1990 levels by 2030.

As part of the European Green Deal, the Commission proposed in September 2020 to raise this target to at least 55% in a responsible way.

This will enable the EU to move towards a climate-neutral economy and implement its commitments under the Paris Agreement.

Renewables – increasing to at least 32% share

A binding renewable energy target for the EU for 2030 of at least 32% of final energy consumption, including a review clause by 2023 for an upward revision of the EU level target.

The original target of at least 27% was revised upwards in 2018.

Energy efficiency – increasing by at least 32.5%

A headline target of at least 32.5% for energy efficiency to be achieved collectively by the EU in 2030, with an upward revision clause by 2023.

The original target of at least 27% was revised upwards in 2018.

Governance system

A transparent and dynamic governance process will help deliver on the 2030 climate and energy targets in an efficient and coherent manner.

The EU has adopted integrated monitoring and reporting rules to ensure progress towards its 2030 climate and energy targets and its international commitments under the Paris Agreement.

Based on the better regulation principles, the governance process involves consultations with citizens and stakeholders.

National energy and climate plans

Under the governance system, Member States are required to adopt integrated national energy and climate plans (NECPs) for the period 2021-2030. Member States had to submit their draft plans by the end of 2018 and final plans by the end of 2019.

National long-term strategies

Under the governance system, Member States are required to develop national long-term strategies and ensure consistency between these strategies and their NECPs.

Benefits

A joined-up approach for the period up to 2030 helps ensure regulatory certainty for investors and coordinate EU countries’ efforts.

The framework helps drive progress towards a low-carbon economy and build an energy system that:

  • ensures affordable energy for all consumers;
  • increases the security of the EU’s energy supplies;
  • reduces our dependence on energy imports;
  • creates new opportunities for sustainable growth and green jobs, and
  • brings environmental and health benefits – e.g. through reduced air pollution.