emissions down by 90% by 2040: The European Commission has submitted a plan for the green transformation of Europe
On July 2, the European Commission (EC) introduced amendments to the EU climate law, proposing that the bloc reduce net greenhouse gas emissions by 90% by 2040 compared with 1990 levels.
As they say, this will give confidence to investors, innovation, strengthen the industrial leadership of European enterprises and increase the energy security of the region.
The EC notes that the bloc is moving well towards achieving the 55% target for 2030. The new proposal builds on this current legally binding EU goal and defines a more pragmatic and flexible way to achieve it.
At the same time, the European Commission has included flexible conditions to mitigate emissions reductions for industry. In addition, the proposal allows carbon credits from non-EU countries to be accounted for up to 3% of the 90% target starting in 2036, which is a new approach.
The EC's proposal to set a climate target by 2040 will be submitted to the European Parliament and the European Council.
At the same time, according to Reuters, by the end of this year, the EC will propose a scheme that will use the revenues received from CBAM to support companies exporting goods to foreign markets where competitors do not pay the cost of CO2 emissions. It will be associated with the gradual loss of free permissions. According to EU Climate Commissioner Vopke Hoekstra, compensation is expected to cost the bloc 70 million euros in 2026. The EU expects its carbon border levy to generate 2.1 billion euros in revenue by 2030.
The Commission is still working on developing this scheme, which it will propose by the end of 2025, along with measures aimed at preventing foreign companies from circumventing the CBAM fee.
The European Steel Manufacturers Association (EUROFER) has commented on the new EC proposal to reduce emissions. They note that the proposed goal of 90% requires an unprecedented transformation of society and industry in the bloc in just 15 years.
For the transition in metallurgy to be possible, the EU must more decisively implement an action plan for steel and metals, ensure effective trade protection against global overcapacity, access to competitive low-carbon energy and scrap, and a watertight CBAM Mechanism.
EUROFER CEO Axel Eggert noted that European metallurgists have planned more than 60 industrial–scale projects that can significantly reduce emissions by 2030 if they receive timely and effective support. However, in the absence of conditions, many of the initiatives have already been delayed, and some have been stopped altogether.
The Association also criticized the CISAF program, announced last week, in particular because of its heavy reliance on National implementation.
In addition, EUROFER commented