The European Commission has published an impact assessment on the possible pathways to achieve the agreed objective of making the European Union climate neutral by 2050.
The Commission recommends a net reduction of 90% in greenhouse gas emissions by 2040. To achieve this, the next Commission will present a legislative proposal after the European elections in June 2024.
To achieve this 90% objective, a series of political conditions have been established that are necessary to reach a climate neutral EU. These include the full implementation of the agreed framework for 2030, which ensures the competitiveness of the European industry, greater attention to a just transition, fair competition conditions with international partners, and a strategic dialogue on the post-2030 framework. The Commission expects this to achieve a 50% reduction in emissions by 2030.
“The Green Deal must now become an industrial decarbonization agreement based on existing industrial strengths, such as wind energy, hydropower, and electrolysers, and continue to increase domestic manufacturing capacity in growing sectors such as batteries, electric vehicles, heat pumps, photovoltaic solar energy, and the circular economy,” the European Commission states.
It further adds that carbon pricing and access to financing are also essential for achieving the emission reduction objectives of the European industry. To achieve these objectives, the European Commission will, on the one hand, create a specific working group to develop a comprehensive approach to carbon pricing and carbon markets. On the other hand, it will need to mobilize investments from the public and private sectors.
The European Commission foresees the decarbonisation of the energy sector shortly after 2040, while for the transport and agriculture sectors, the dates are not as clear. However, it does specify that for the former, it will be achieved through a combination of technological solutions and carbon pricing.
“The achievement of the recommended 90% objective will require both emissions reductions and carbon uptake. It will require the deployment of carbon capture and storage technologies, as well as the use of captured carbon in the industry.”
With FI Group as your trusted partner, you can navigate your way through the changing landscape of R&D funding and make the most of the incentives available.
