Europe’s ambitious climate agendaDate: 16 July 2021 Tags: Miscellaneous
European Union will be adopting newer standards in terms of its industrial policy to cut its carbon footprint by half in coming decades.
The plans made and the course of action taken is more aggressive than USA as it aims to reduce carbon emissions by 40-43% over same time.
European Union will ban all cars running on fossil fuels. Ships wanting to dock in ports of Germany or Rotterdam will have to use clean fuel.
Aircrafts stopping over in EU will have to adhere to fuel that are completely green and produced without carbon footprint.
The plans aim to reduce carbon usage by half in a single decade. It is sure to have profound impact on all economic sectors including major job generators such as steel industry.
Aim of the policy
The European Union’s plan is known as Fit for 55. It will cut carbon emission by 55% by 2030 compared to 1990 level.
Industry specific measures
It mandates that automakers should migrate to electrical vehicles. There has been no time line for stopping fossil fuel vehicles.
The commission also aims to build charging station every 60 km so that more people are ready to buy electric vehicles. Hydrogen fuel stations are also being planned.
Airlines will have to mix synthetic fuel with fossil fuels. They will have to pay higher taxes if they continue to operate on polluting sources.
Ships using high polluting fuels will be forced to pay more taxes. They will have to adopt fuels or sources that are eco-friendly.
New regulations make heavy industries to pay more for their pollution. The rate of carbon credits have already gone up by more than 50%.
They fear that their profits will be eroded further and they will lose their competitive advantage over China.
The contribution of renewable energy is currently 20%. There are plans to increase it to about 40% by 2030. Higher taxation on fossil fuel sources would make it discouraging.