The European Commission’s so-called “Fit for 55” legislative programme embraces an overhaul of climate and energy policy and does not lack ambition. It details changes required under the European green deal through which the European Union can meet legal commitments to cut carbon by 55 per cent by 2030 compared to 1990 levels; a key landmark to enable “climate neutrality” by 2050.
The commission also announced reforms of its emissions trading scheme relating to the way carbon is traded with caps on emissions. It is an essential mechanism, given the scale of the climate crisis, but has been hampered by exemptions.
With transport and heavy industry responsible for most EU emissions, it is no surprise that carmakers, airlines and shipping are targeted, and are already complaining the programme is anti-competitive and will stifle innovation. Agreement on the measures will take years to finalise but these sectors have to face up to the reality underlined by European Commission president Ursula von der Leyen that "our current fossil fuel economy has reached its limits".
Reforms will force airlines to pay more for their emissions – a cost likely to be passed on to consumers. They will also feel financial pain if they continue to use fossil fuels though the commission insists renewable energy will become the cheaper option and a €72 billion “social climate fund” will make the transition fair. If a just transition process is not rolled out in tandem with decarbonisation, it will derail Europe’s attempt to be a global leader on climate action. This is where political buy-in will need to be the great enabler of collective action.
A new requirement that land use be "climate neutral" by 2035 will be most challenging for Ireland because of the current structure of Irish agriculture.
The Government has more than matched EU ambition with the 51 per cent cut in emission by 2030 (compared to 2018) enshrined in the Climate Bill. Such progress is essential but is dependent on a seismic shift from rhetoric to action.