The European Council has agreed on more ambitious targets for renewable energies. Under the “Fit for 55” package, the EU targets a net reduction of greenhouse gas (GHG) emission by 55% by 2030. Fit for 55 will help the EU stay on track for its 2050 target of achieving climate neutrality.
The Fit for
55 proposal comes amid the ongoing heatwave and energy crisis crippling
European countries. Electricity demand has surged, with baseload electricity
prices up over 50% from June.
In July, Germany had to restart its mothballed
coal power plants as the country struggled to meet demand. The French minister
for the energy transition highlighted that the Fit for 55 package will help to
reduce the EU’s dependence on Russia for energy.
One of the
key tools to reduce greenhouse gas emissions will be the EU Emissions Trading
System (ETS). Under the revised Fit for 55 plan, the current ETS will be
reformed.
The ETS will cover new sectors including maritime transport and road
transport. Free allowances will gradually be phased out in certain sectors.
Allowances will be reduced by 4.2% annually, compared to 2.2% annually under
the current plan.