Latest News
European Parliament Moves Forward with Several Climate Text Approvals, Including Sustainable Carbon Cycles
25th April 2023
The European Parliament (EP) has approved several key pieces of legislation that are part of the “Fit for 55” package that aims to reduce greenhouse gas emissions (GHG) in the EU by at least 55% by 2030. These newly approved texts include legislation relevant to CCS deployment, including the EU Emissions Trading Scheme (EU ETS) and the Carbon Border Adjustment Mechanism (CBAM). The EP also adopted a resolution on Sustainable Carbon Cycles.
A communication on Sustainable Carbon Cycles was initially published by the Commission in 2021, which called for the scale-up of CCS and carbon removal. In the now-approved texts, the EP echo’s that CCS is a proven technology that can support the EU’s climate neutrality targets, and calls on the Commission to establish a system that will reliably trace and differentiate between CO2 being captured from the atmosphere and on site to address potential issues tied to double counting. The EP also acknowledges the Commission’s proposal to develop a regulatory framework for the certification of carbon removals, which, once established, will serve to ensure the quality and governance surrounding carbon removals in the EU.
The EP also moved forward with approvals for the proposed Carbon Border Adjustment Mechanism, which seeks to ensure that imported goods align with the climate standards of EU member states, subsequently aiming to reduce the risk of carbon leakage of European-based industries.
Proposed revisions to the EU ETS have also been approved by the EP. Notably, ETS sectors will be expected to expand their climate ambitions by reducing emissions by 62% by 2030, compared to 2005 levels. Additional EU ETS reforms include the phase-out of free allowances to the aviation sector by the mid-2020s and the inclusion of emissions by the maritime transportation sector.
Read here for more on the EU ETS and CBAM
Read here for more on the Sustainable Carbon Cycles