To reduce carbon emissions across the continent, the European Commission recently launched Fit for 55 proposals including caps for buildings and transports for the first time. The ambitious proposal aims to eliminate greenhouse gas emissions by 2050 and to help deliver the European Green Deal.
The proposal reportedly includes 12 policy proposals which are aimed at reducing European Unions’ greenhouse gas emissions by 55 per cent before 2030, compared to 1990 levels. Curbing and reducing the emissions in the coming decade is of utter most importance to Europe as it would eventually help the continent in becoming the world’s first climate neutral continent by 2050, suggests the European Commission. Europe was the first continent to declare to be climate neutral in 2050 and now the continent is on the plans of putting up a concrete roadmap to achieve these emission reductions.
Reportedly, the proposal also aims to expand the EU's Emissions Trading System (ETS). Herein, it would, for the first time, impose a tax on polluting companies for the emissions associated with heating buildings with fossil fuels. The Fit for 55 proposals also informs three per cent of public sector buildings to be renovated every year to make them more energy efficient. It also proposes to set renewable sources in the building with at least 49 per cent by 2030. By an additional 1.1 per cent point each year until 2030, member states are expected to increase the use of renewable energy in heating and cooling. EU’s energy of about 40 per cent should come from renewable sources by 2030, including buildings, transport, heating and cooling and industries. Upon passing of the proposal, reportedly other sectors including freight shipping and road transport would be subject to emission controls and the sale of new petrol and diesel cars in the EU would be banned in 2035.
Companies are expected to pay for their emissions by purchasing carbon credits according to the ETS. The price for carbon hit a record of €50 per tonne in May. The proposal, thereby, offers a new separate ETS to avoid disturbing the existing balance of the carbon market. Fit for 55 proposes companies to pay for the emissions associated with the fossil fuels used to heat buildings and power cars from 2026. As per the proposal, the overall emissions cap would be reportedly lowered as part of the plan.