EU begins 'bloody hard' battle to reach green ambition

The EU went into battle Wednesday to secure a path to its pledge of carbon neutrality by 2050, triggering an epic political clash over electric cars and fuel prices that could last for years.

The mammoth plan was unveiled by the European Commission and is intended to transform the bloc's economy from fossil fuel dependency to a world of net-zero emissions.

Brussels also hopes to establish Europe as the unquestioned leader on meeting the goals of the Paris climate accord.

"Europe is now the very first continent that presents a comprehensive architecture to meet our climate ambitions," EU Commission chief Ursula von der Leyen told reporters in Brussels.

"We have the goal, but now we present the roadmap to how we are going to get there," she added.

The myriad proposals include an effective ban on the sale of new petrol-driven cars from 2035, one of the boldest moves against gas-guzzlers to date that the car lobby was quick to slam as "not rational".

The dozen draft laws were announced by the European Commission's environment supremo Vice President Frans Timmermans, who said the political challenge was immense.

"Nothing we have presented today is going to be easy. It's going to be bloody hard. I know that," he said.

At the heart of the legislative package is the ambition to breathe new life into the EU's flawed Emissions Trading System (ETS), the world's biggest carbon market, where industry pays for the right to pollute.

The laws will now snake their way through the EU's legislative system amid high-stakes horse-trading in the European Parliament and among the bloc's 27 member states, egged on by industry lobbyists and green activists.

"Each state will have to defend its interests because their situations are very different in terms of industry, geography, energy supply and investment capacity," said a senior EU diplomat.

The jockeying has already begun, with powerful interests fighting hard to win special treatment -- or extra time -- before the constraints of a greener Europe come into force.

Environmentalists swiftly denounced the laws as not going far enough -- with the European Environmental Bureau decrying a plan that was "unfit and unfair" to fight climate change effectively.

Climate campaigner Greta Thunberg said that unless the EU "tear up" their proposals, "the world will not stand a chance of staying below 1.5 degrees Celsius of global heating".

"That's not an opinion, once you include the full picture, it's a scientific fact," she tweeted.

- 'Massive resistance' -

One major fear is resistance from the motoring public in what could resemble a continent-wide replay of the French "yellow vests" protests that erupted when the government tried to impose a new fuel tax in the name of defending the environment.

The EU's plan imposes sustainable and probably more expensive fuels in public-facing sectors such as transport, heating and construction, in a move some MEPs called "political suicide".

Timmermans said that what Europeans are most worried about was: "Is this going to be fair?"

"If we fail to prove that, I think the resistance will be massive," he said.

- 'Fit for 55' -

The legislative push is being promoted as the "Fit for 55" package, as its central aim is to align existing EU laws and targets with a deepened 55 percent net emissions reduction by 2030.

The previous objective was a cut of at least 40 percent from 1990 levels.

Another pillar is a carbon levy that will be paid by non-European companies at the bloc's external border to ensure dirtier imports don't have an unfair advantage.

The levy will be called a "carbon border adjustment mechanism" and polluting companies importing goods into the EU will have to buy ETS carbon permits, a move likely to antagonise EU trading partners like Russia, China and India.

"Our drive to reach our climate goals cannot be undermined by production moving to less climate-ambitious countries," said EU Trade Commissioner Valdis Dombrovskis.

To ease the blow, European rivals of the importers -- industries such as steel, cement, aluminium, fertilisers and electric power -- would see their existing free carbon permits phased out.

This is deeply dissatisfying to EU industry, and BusinessEurope, the corporate lobby, said the plan "risks destabilising the investment outlook for these sectors enormously".

- 'No taxes' -

Another big battle will come from airlines over a measure to tax aviation fuel for intra-European flights. Tourist destinations such as Spain, Portugal and Greece will hope to defang the proposal.

"Aviation is committed to decarbonisation as a global industry. We don't need persuading, or punitive measures like taxes to motivate change," said Willie Walsh, the head of the International Air Transport Association.

Mainly eastern member states, such as Poland, which rely on coal, will resist tighter emissions reduction targets and demand financial aid to change their ways.

And environmentalists are unconvinced by plans to promote natural carbon sinks like forests and meadows, fearing an effort to conceal a lack of ambition in cutting emissions off at the source.

Main points of Europe's green economy plan
Brussels (AFP) July 14, 2021 - The European Commission unveiled a vast legislative programme on Wednesday to increase the cost of pollution and drive the economy towards a carbon neutral future.

The plan will be subject to intense lobbying from industry, green activists and member states as draft laws are finalised, but here is an outline of it as it stands:

- Expanded carbon market -

European companies buy and sell allowances for greenhouse gas emissions that they are assigned on the EU Emissions Trading System or ETS.

The legislative package would see the ETS expanded to cover maritime transport, while creating a second parallel market for road transport and domestic heating.

This could have a direct impact on consumer prices for ordinary households and private motorists and will prove politically controversial.

Brussels plans a social fund to cushion the blow on consumers -- or voters.

But average expenses of the poorest households could increase by 44 percent for transport and by 50 percent for residential heating, according to the think-tank ERCST.

The idea faces opposition from NGOs and MEPs from across the political spectrum and divides the European Commission itself.

"I'm not sure it will survive," warned one EU diplomat.

- Carbon allowances -

The bulk of the pollution permits or carbon quotas now traded on the ETS originate as free allowances given to European firms to help them compete with imports from less regulated markets.

Under the proposal, the EU would charge importers the market rate for carbon permits, while phasing out free allowances granted to EU-based suppliers of steel, aluminium, cement, fertiliser and electricity.

By treating imports and local production equally, Brussels believes it will respect World Trade Organisation (WTO) rules and counter accusations of "protectionism".

The number of permits in circulation will also be reduced over time to mechanically force up the price of carbon emissions, encouraging investment in greener production.

This idea might antagonise Europe's trade partners but if it survives the Brussels horse-trading it will be phased in slowly -- too slowly for green activists.

- The end of the internal combustion engine -

The commission's draft would reduce permitted emissions from new passenger cars and light commercial vehicles to zero from 2035 -- effecting obliging the industry to move on to battery-electric models.

Brussels promises to help build one million charging points along European roads by 2025, 3.5 million by 2030 and 16.3 million by 2050.

- Air transport -

The drafts introduce a levy on jet fuel for flights within the EU. Private business jets and cargo planes will be exempt, due to international legal constraints.

In a separate directive, the commission would raise the -- still modest -- target for the use in aviation of "sustainable fuels", those containing a share of biofuels.

In addition, airlines would gradually lose the free emissions allowances they receive for their intra-EU flights.

- Energy efficiency -

The EU's energy efficiency target would be increased. Energy consumption would have to fall by at least 36 to 37 percent by 2030 compared to the current target of 32.5 percent.

- Forests and 'carbon sinks' -

Brussels plans to introduce a target for carbon absorption via natural "carbon sinks" such as forests, grasslands, and peat bogs, set at 310 million tonnes of CO2 equivalent by 2030 for the EU as a whole, with binding targets for each member state from 2026.

- Social Fund -

To counter the effects of regulations on the poorest households and to fight fuel-linked poverty or social inequalities in transport, Brussels will propose the establishment of a "social climate action mechanism", a fund fed by revenues from the new planned parallel carbon market.

EU wades into battle over its green revolution
Brussels (AFP) July 14, 2021
The EU unveils a plan Wednesday to meet its bold green pledge of carbon neutrality by 2050, at the risk of triggering an epic political clash over electric cars and fuel prices. The dozen draft legal texts are intended to transform the European economy from fossil fuel dependency to a world of net-zero emissions, low pollution and battery-powered transport. Drawn up by the European Commission, the EU's executive, the plan effectively bans the sale of new petrol-driven cars from 2035, one of the ... read more