As part of the 'Fit for 55' package, the Commission presented a legislative proposal to review the EU Emissions Trading System (ETS). The aim of the review is to align the EU ETS Directive with the EU target set out in the European Climate Law to reduce net greenhouse gas (GHG) emissions by 55 % by 2030, compared to 1990 levels. To this end, the amount of emission allowances would be reduced, fewer allowances would be allocated for free, and the ETS would be extended to maritime transport. This would reduce emissions in the ETS sectors by 61 % by 2030, compared to 2005. A separate new emissions trading system would be established for fuel distribution for road transport and buildings.

EPRS policy podcast - Review of the EU ETS: 'Fit for 55' package

As part of the 'Fit for 55' package, the Commission is proposing a revision to the EU's emissions trading system (ETS) as regards carbon dioxide emissions from aviation. The proposal seeks to ensure that the sector contributes to the EU's climate targets through increased auctioning of allowances, with an end to free allowances from 2027, and by applying the linear reduction of aviation allowances. The proposal will also integrate, into the revised ETS, the International Civil Aviation Organization's agreed global market-based Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) and apply it to international flights departing from or arriving at an airport inside the European Economic Area (EEA). For domestic flights in the Member States or flights within the EEA, the ETS would continue to apply.

EPRS policy podcast - Revision of EU ETS as regards aviation: 'Fit for 55' package

<div style="padding-top: 10px;"><strong>The aim of the EU emissions trading system (EU ETS) is to help EU Member States achieve their commitments to limit or reduce greenhouse gas emissions in a cost effective way. Allowing participating compagnies to buy or sell emission allowances means that emissions cuts can be achieved at least cost. </strong></div>

<div style="padding-top: 10px;">The EU emissions trading system (EU ETS) is a cornerstone of the EU's policy to combat climate change and its key tool for reducing greenhouse gas emissions cost-effectively. It is the world's first major carbon market and remains the biggest one.</div>

Green house emissions trading systems

Plans to reduce the energy consumption and greenhouse-gas emissions from the buildings sector are debated by plenary. 

The revision of the Energy Performance of Buildings Directive, agreed with the Council in December, aims to substantially reduce greenhouse gas (GHG) emissions and energy consumption in the EU building sector by 2030, and have it achieve climate neutrality by 2050. The new rules also mean more of the worst-performing buildings will undergo renovation, and information-sharing on energy performance will be improved.
New buildings must be zero-emission as of 2030, and new buildings occupied or owned by public authorities must be zero-emission as of 2028. For residential buildings, member states have to put in place measures to ensure a reduction in the average level of primary energy used of at least 16% by 2030 and at least 20-22% by 2035.

Member states also have to adopt measures to decarbonise heating systems and phase out fossil fuels in heating and cooling with fossil fuel boilers being completely phased e out by 2040.

Plenary Debate - Energy performance of buildings

EP Plenary session - Energy performance of buildings

EP Plenary session - Commission statement - EU2040 climate target

Vote on Binding annual greenhouse gas emission reductions for a resilient Energy Union

EMIS committee - Vote on the final inquiry report and draft European Parliament recommendation

Aviation emission trading. Press conference by Peter LIESE

The European Climate Law instructs the Commission to propose an EU climate target for 2040 at the latest within six months of the first global stocktake carried out under the Paris Agreement that took place at the COP28 in December 2023. Plenary debates proposals for setting the EU 2040 climate target, shortly after the Commission publishes a Communication and an impact assessment to initiate the process of setting a 2040 climate target. Closing statements

EU2040 climate target: Closing statement by Wopke HOEKSTRA, European Commissioner for Climate Action

The European Climate Law instructs the Commission to propose an EU climate target for 2040 at the latest within six months of the first global stocktake carried out under the Paris Agreement that took place at the COP28 in December 2023. Plenary debates proposals for setting the EU 2040 climate target, shortly after the Commission publishes a Communication and an impact assessment to initiate the process of setting a 2040 climate target. Second part of the MEPs debate

EU2040 climate target: MEPs debate (part 2)

The European Climate Law instructs the Commission to propose an EU climate target for 2040 at the latest within six months of the first global stocktake carried out under the Paris Agreement that took place at the COP28 in December 2023. Plenary debates proposals for setting the EU 2040 climate target, shortly after the Commission publishes a Communication and an impact assessment to initiate the process of setting a 2040 climate target. First part of the MEPs debate

EU2040 climate target: MEPs debate (part 1)

The European Climate Law instructs the Commission to propose an EU climate target for 2040 at the latest within six months of the first global stocktake carried out under the Paris Agreement that took place at the COP28 in December 2023. Plenary debates proposals for setting the EU 2040 climate target, shortly after the Commission publishes a Communication and an impact assessment to initiate the process of setting a 2040 climate target. Opening statements by Wopke HOEKSTRA, European Commissioner for Climate Action. This transcription is a result of an automatic process. Please check against delivery.

EU2040 climate target: Opening statements by Wopke HOEKSTRA, European Commissioner for Climate Action

Roberta METSOLA, EP President and Jessika ROSWALL, Swedish Minister for EU Affairs signs various COD LEX texts. Equal Pay Directive, Proposal for a Regulation on general product safety, amending Regulation Social Climate Fund (Fit for 55 package), greenhouse gas emission trading system,EU ETS Directive (Fit for 55 package), MRV Regulation (Fit for 55 package), Regulation establishing a carbon border adjustment mechanism, CBAM (Fit for 55 package), Directive on the exchange of information between the law enforcement authorities of Member States and repealing Council Framework Decision 2006/960/JHA, Information exchange between law enforcement authorities, Directive amending Directive 2003/25/EC as regards the inclusion of improved stability requirements and the alignment of that Directive with the stability requirements defined by the International Maritime Organisation, Ro-Ro passenger ships, Decision the European Parliament and the Council on a European Year of Skills.

Lex Signing ceremony: signature of Eleven COD LEX texts by Roberta METSOLA, EP President and by Jessika ROSWALL, Minister for EU Affairs, on behalf of the Swedish Presidency of the Council.

In April 2023, the European Parliament approved the deals reached with EU countries in late 2022 on several key pieces of legislation that are part of the “Fit for 55 in 2030 package”. This is the EU’s plan to reduce greenhouse gas emissions by at least 55 % by 2030 (compared to 1990 levels) in line with the European Climate Law. Restrictions: ©The material may not be edited and must be shown entirely.

EPRS - Fit for 55: how will we cut our emissions?

Negotiations starts with the Czech Council Presidency on the EU Emissions Trading System (ETS) and the Carbon border Adjustment Mechanism (CBAM), after Parliament and member states agreed on their respective positions in June.

ETS and CBAM trilogues (Fit for 55): arrivals and roundtable

MEPs votes on eight draft laws aimed at combatting climate change and protecting European jobs and citizens. Plenary rejects the report on the Emissions Trading System including for aviation. MEPs decides to send back to Committee the Carbon Border Adjustment Mechanism and the Social Climate Fund. MEPs adopts the reports on CO2 emissions reductions for new cars, land use and forestry and effort sharing.

European Union Emissions Trading System (T)

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