The European Commission (“EC”) adopted the Fit for 55 climate action plan on Wednesday, announcing a legislative package that aims to cut carbon emissions in the European Union (“EU”) by 55% by 2030, compared to levels measured in 1990. It also calls for action to make the continent carbon neutral by 2050.
The Fit for 55 package includes provisions on expanding the EU Emissions Trading System to charge for carbon emissions in more sectors. Additionally, it proposes Effort Sharing Regulation and prescribes new emissions-cutting targets per Member State. It also calls for an increase in renewable energy sources use, creates the new Carbon Border Adjustment Mechanism (“CBAM”) and proposes a series of other legislative changes to cut carbon emissions.
Additionally, the EC proposed the creation of a Social Climate Fund which should make €144.4 billion available to the Member States for a socially fair transition.
Earlier, Gecić Law wrote about the Fit for 55 package and our team is preparing a series of articles on the upcoming legislation which will bring many new rules related to Environmental Law and international trade to EU Member States and anyone doing business in the EU.
The legislative package is part of the European Green Deal which was presented in 2019.
