European Parliament approves climate law, endorsing 55% CO2 emissions cut by 2030

The European Parliament approved the so-called European Climate Law (EU Climate Law) late this week, including legally binding targets to cut CO2 emissions by 55 % by 2030 and achieve climate neutrality by 2050. The only remaining step in the legislative process is formal approval by the Council of the EU.

The European Union has taken another significant step towards implementing the targets it set under the so-called European Green Deal, under which it committed to reducing emissions by 50 % to 55 % compared with 1990 levels. Under the Climate Law, the European Commission proposed 55 %, and the target was approved by the European Parliament in this form.

The legislative process is therefore largely complete, and following approval by the Council of the EU, the legislation will be published in the Official Journal of the EU and enter into force after twenty days. The targets will thus become legally binding for the EU.

From the perspective of European Union climate policy, this is a crucial step that significantly accelerates Europe's path towards decarbonisation. Until 2020, only a 20% greenhouse gas emissions reduction target was in place, while until recently the target was a 40 % emissions reduction by 2030, introduced by the Winter Package.

In addition to the targets already mentioned, a separate target for 2040 will also be set. This is not yet part of the Climate Law proposal, but will be established after 2023, following an assessment of compliance with commitments under the Paris Climate Agreement.

EU prepares new energy package called the "Fit for 55 Package"

Although the main target is set out in the Climate Law, changes to related energy and climate legislation will be far more important. The European Commission plans to present these under the so-called Fit for 55 Package, which, as its name suggests, is intended to enable the emissions target for 2030 to be achieved.

The package will be presented in two phases, with the first part of the legislation due to be presented on 14 July this year and the second in the fourth quarter of this year. The changes should primarily concern emissions trading, agricultural emissions and the carbon border levy. In a subsequent phase, the Energy Performance of Buildings Directive and gas rules under the third energy package (Directive 2009/73/EU and Regulation 715/2009/EU) should be amended.