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Legislative Updates: Sustainability Outlook European Union – July 2021

Sustainability Outlook European Union - July 2021

European Commission proposes a landmark “Fit for 55” package of climate and energy legislation.

Delivering a key component of the European Green Deal umbrella policy that it adopted in December 2019, the European Commission issued 15 legislative proposals, accompanied by three non-legislative communications. With the supporting documents, e.g. impact assessments, the package adds up to around 4,200 pages. It includes the following initiatives:

Legislative Amendment to the Renewable Energy Directive 2018/2001 (REDII) – increasing the overall binding target to 40% of renewables in the EU energy mix (please see below).

Revision of the EU Emission Trading System (ETS) Directive 2003/87 and related laws – increasing greenhouse gas emissions reductions from covered sectors to 61% by 2030 (please see below).

Regulation establishing a carbon border adjustment mechanism (CBAM) – please see below.

Revision of the Market Stability Reserve (MSR) Decision 2015/1814 – maintaining that 24% rather than 12% of allowances are placed in the reserve after 2023.

Revision of the Effort Sharing Regulation (ESR) 2018/842 – increasing the reduction target for covered sectors by 11 percentage points.

Revision of Energy Efficiency Directive 2018/2002 (EED) – increasing the energy efficiency targets at EU level and making them binding. Revision of the Energy Taxation Directive 2003/96 – to align the minimum tax rates for heating and transport fuels with EU objectives, while mitigating the social impact.

Amendment of ETS Directive 2003/87 – regarding aviation. Amendment of ETS Directive 2003/87 – regarding notifications under Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).

Amendment of the Regulation 2019/631 setting CO2 emission standards for cars and vans – setting a 100% reduction target for new cars by 2035.

Revision of the Alternative Fuels Infrastructure Directive (AFID) 2014/94 – ensuring the necessary deployment of interoperable and user-friendly infrastructure for recharging and refuelling cleaner vehicles.

Revision of the Land Use, Land Use Change and Forestry (LULUCF) Regulation 2018/841 – setting higher ambitions for the expansion of natural carbon removals.

Proposal for a Social Climate Fund Regulation – providing dedicated funding to Member States to help citizens finance investments in energy efficiency, new heating and cooling systems, and cleaner mobility.

Proposal for ReFuelEU Aviation Regulation – promoting sustainable aviation fuel blends, as well as synthetic fuels, known as e-fuels.

Proposal for FuelEU Maritime Regulation – to promote sustainable maritime fuels by imposing a maximum limit on the greenhouse gas content of the energy that ships use.

Francesca Zuccarello Cimino and Josep Nicolas Bellot also contributed to this article.

© Copyright 2022 Squire Patton Boggs (US) LLPNational Law Review, Volume XI, Number 214

About this Author

Ken Huestebeck Energy & Environmental Attorney Squire Patton Boggs Brussels, Belgium

Ken Huestebeck is a member of the European Public Policy Practice, where he focuses on energy, the environment and health law and policy.

His current focus is on circular economy policy and adjacent regulation, which includes devising and executing advocacy and communications strategies.

Ken joined the firm in September 2017. Previously, he was a lawyer in the strategic litigation team of a public interest law firm in Brussels and London. There, he successfully managed contentious competition and environmental policy matters in European upstream power and heat markets,...

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Anita Lloyd Environmental & Sustainability Attorney Squire Patton Boggs Birmingham, UK

Anita Lloyd specialises in environmental and sustainability matters, including waste, environmental permits, producer responsibility, product compliance and labelling, chemical regulation, asbestos and contaminated land, and climate change law.

Anita advises clients in all sectors but has particular expertise in the chemicals, plastics, automotive, paper and other manufacturing sectors. She regularly advises clients based in the UK, the EU and outside the EU, on environmental and product regulation and its application to their business, products, facilities and supply chains. She...

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