EU 2040 climate target – EU ambitions versus Polish reservations

The European Parliament has adopted a position on the European Commission’s proposal to amend the EU’s climate law, setting a new, intermediate and binding EU climate target for 2040. It calls for a 90 percent reduction in net greenhouse gas emissions compared to 1990 levels. Negotiations with member states on the final form of the law will now begin.

EU 2040 climate target

The adoption of the EU’s 2040 climate target to reduce greenhouse gas emissions by 90 percent from 1990 levels was preceded by lengthy negotiations and analysis. In an earlier issue we wrote, among other things, about the opinion of the European Economic and Social Committee. For more information, see the article: Climate target for 2040 and path toward climate neutrality by 2050. The text of the European Parliament’s position was adopted by 379 votes, with 248 against and 10 abstentions.

The European Parliament, in its position paper, recommends that the European Commission assess progress toward intermediate goals every two years, taking into account the latest scientific data, technological developments and the EU’s international competitiveness.

Among other things, the review will assess the state of net greenhouse gas emissions removal at the EU level compared to what is needed to reach the 2040 target, as well as the difficulties and potential for increasing the EU’s industrial competitiveness. The review will also consider trends in energy prices and their effects on both businesses and households.

Based on the conclusions of the review, the European Commission will propose an amendment to the EU climate law, if necessary. This could include modifying the 2040 target or taking additional measures to increase support – for example, to protect the EU’s competitiveness, prosperity and social cohesion.

EU 2040 climate target – Poland’s position

Despite lengthy negotiations and the introduction in the text of the demands that Poland fought for from the very beginning, i.e. relief for the defense industry and a review clause, according to Deputy Climate Minister Krzysztof Bolesta, we voted against the establishment of a new climate target for 2040. We did not agree with such a formulation of the document, because the level of ambition is too high, and the set target should be realistic to achieve at an acceptable cost. As Deputy Minister Bolesta mentioned, the KOBiZE’s calculations show that Europe can achieve a maximum of eighty-something percent reduction in emissions by 2040, and only by incurring very high costs.

The revision clause, which Poland has been calling for, allows for a rollback if the stated goal is not feasible. It will make it possible to assess the current situation a few years after its adoption and decide on further action.

EU ETS2 emissions trading scheme postponed until 2028.

ETS2, which was to be launched in 2027, is intended to help reduce emissions from buildings and the road transport sector, as well as additional sectors that are not covered by the EU ETS (such as small industrial installations). ETS2 will involve fuel suppliers, required to account for the emissions (and purchase allowances) that their consumption will generate.

The text of the European climate law regulation postponed the implementation of ETS2. The extension of the_CO2 emissions trading scheme to transport and construction is scheduled to take effect in 2028, rather than 2027.

The postponement of ETS2’s entry into force is significant because it raises serious questions about the potential negative social and economic impacts that result:

• significant uncertainty about the price of allowances, including the risk that they will rise to high levels;
• unfair distribution of burdens among different types of households and countries and regions with different incomes;
• differences in the fuel structure currently used by countries.

European climate law

European climate law imposes a legally binding obligation on all EU member states to achieve climate neutrality by 2050. It also sets a target for the EU to reduce net greenhouse gas emissions by at least 55 percent by 2030 compared to 1990 levels.

The setting of an ambitious EU climate target for 2040 is also important for the implementation of the Union’s international climate commitments announced at the 30th UN Climate Change Conference, held November 10-21 in Belém, Brazil.