Aus den Ländern (Brüssel) - Fit for 55 Package under the Green Deal

On the 22nd of June the Economic Council Brussels met with Diederik Samsom, Head of Cabinet of EVP Frans Timmermans, in order to discuss the upcoming “Fit for 55 Package under the European Green Deal”. 

With the “Fit for 55 Package” the European Union wants to reduce its carbon emission by 55% until 2030 in reference to 1990. Furthermore, it aims to set Europe on course to carbon neutrality until 2050. With 14 different proposals the European Commission wants to advance the mission to carbon net zero. The package is set to be released on July 14th. Diederik Samsom started his speech by pointing out the progress Europe has made in the last years in regards of reducing its emissions. Nevertheless, a further reaching and more coordinated approach is needed at this point. One of the main piece of the package is the revision of the EU Emission Trading System (ETS). The revision will extend the current ETS and will include road transport, as well as the building sector. The financial contribution generated through the emission trading, will be used to further invest in decarbonization and technologies that will support Europe’s green transition. Furthermore, the European Commission plans to present the “Carbon Border Adjustment Mechanism” (CBAM). CBAM aims to avoid so called “carbon leakage”, a situation that may occur if production of emission intense goods is moved outside of the European Union, to places with laxer emission standards and later reimported. The “Fit for 55 Package” also plans to add an amendment to the “Renewable Energy Directive” (RED). Currently RED defines the overall EU targets for the usage of renewable energy. With the adjusted emission reduction goals, these targets also have to be redefined. The “Fit for 55 Package” is ambitious and will challenge the domestic industry. Nevertheless, the European Commission will ensure that Europe’s industry will not be outcompeted by third countries and aims to raise the international level of the playing field.

After an overview of the upcoming “Fit for 55 Package” the Q&A with the members began. The first questions focused on the challenge of political coordination. In order to ensure a successful implementation the design, as well as the responsibility throughout the institutions and member states has to be aligned. Additionally the question was raised regarding the according infrastructure for the energy and automotive sector. Only by working hand-in-hand a proper energy and mobility transition can be accomplished. Innovation and openness to technology are key. The discussion with the members of the Economic Council Brussels also focused on how to convince the public to accept and join the ambitious plans of the Green Deal. The recent Swiss national referendum showed that even a wealthy nation, with seeable negative environmental impact on their mountain regions, do not fully support an emission reducing legislative package. Other discussion points focused on the role of the ICT sectors, the aviation industry, as well as the need for international partners to tackle climate change.