Heading to Neutrality

A look into the EU's Climate Policies

With industries like the aviation increasing their impact on the climate, authorities have to increase regulations in order to meet climate neutral goals set by the UN. One authority that has set a bunch of regulations on all industries is the EU and we’ll discuss how authorities are responsible to bring a power hungry society to a carbon neutral one.

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European Green Deal

The green deal is the first pledge that the EU has made to reach carbon neutrality by 2050. Here the main secondary goal is to decouple the economic growth from the resource use and with the help of a third of the EU recovery plan (800 billion euros) is the umbrella to other regulations to reach carbon neutrality by 2050¹.

Fit for 55

To reach the goal set by the green deal, the EU set a milestone goal to reduce its carbon emissions by 55% at least by 2030 relative to 1990 levels. The strategy encompasses a comprehensive approach that not only emphasizes the adoption of renewable energy sources but also strengthens the EU's carbon pricing mechanisms.

Carbon Tax System

Since 2005, when the EU Emissions Trading System (ETS) was introduced, carbon emissions have decreased by 41%. This cap-and-trade system requires industries with high carbon footprints to purchase emission allowances, effectively putting a price on carbon and incentivizing reductions in greenhouse gas emissions. The Fit for 55 package proposes the strengthening of the ETS, increasing the cost of emissions to further drive down pollution and support the transition to a low-carbon economy².

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Carbon Border Adjustment Mechanism

To prevent indirect carbon emissions and ensure that global trade aligns with the EU's climate goals, the Fit for 55 package introduces the Carbon Border Adjustment Mechanism (CBAM). This policy imposes carbon costs on imports from countries with less stringent climate regulations. By leveling the playing field, the CBAM encourages other countries and international companies to adopt more robust environmental policies, furthering global efforts to combat climate change. Now so where do airplanes come in?

Sustainable and Smart Mobility Strategy

The European Union's Sustainable and Smart Mobility Strategy aims to reduce transport emissions by 90% by 2050. This comprehensive plan envisions a future where transportation is not only efficient but also environmentally friendly. For the aviation sector, this means integrating sustainable aviation fuels (SAFs), improving air traffic management, and encouraging the development of electric and hybrid aircraft.

Under this program is the ReFuelEU Aviation, which mandates increasing the use of SAFs, and the Single European Sky initiative, which optimizes flight paths to reduce fuel consumption and emissions. By fostering innovation and promoting multimodal transport solutions, the strategy hopes to create a uninterrupted and sustainable travel experience. This initiative involves modernizing Europe's fragmented airspace, creating a seamless and efficient air traffic management system that benefits both the environment and the aviation industry³. The reliance on freight trains will double as well as high speed rail, reducing the need for short haul flights, which has been seen with France’s ban on internal flights that could be replaced with a 2 and a half hour train ride.

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Now with the EU adopting these new laws and regulations it doesn’t mean that the whole world will follow. Despite the CBAM being in place, countries that don’t want to change their carbon emissions will simply just look elsewhere to sell their products. This is why you need to push for your own government to do the same and this can start at a community level. There will be pushbacks but we need to approach the transition to carbon neutrality with all angles rather than just focusing on renewables.

Till next week,

Maxime

1. The European Green Deal - The European Commission

https://commission.europa.eu/strategy-and-policy/priorities-2019-2024/european-green-deal_en

2. Fit for 55 - The European Council -

https://www.consilium.europa.eu/en/policies/green-deal/fit-for-55/#0

3. Mobility Strategy - European Commission -
https://transport.ec.europa.eu/transport-themes/mobility-strategy_en