Europe wants to lead the global fight against climate change to become the world’s first net-zero emissions continent by 2050 under its Green Deal. To reach the goal, it will need to overhaul every corner of its economy, with reducing greenhouse gases in transport and industry being the biggest challenges.
The EU executive will next week propose strengthening and expanding its carbon market, revising energy taxation rules to discourage the use of fossil fuels and imposing the world’s first climate levy on certain emissions-intensive goods brought into the region. The Fit for 55 package will also include more ambitious climate targets for member states in areas not covered by the carbon market.
The revised renewable energy law will set targets for the use of sustainable fuels in transport, heating and cooling, buildings and industry. To help the massive roll-out of electric vehicles, a regulation on alternative fuels will require member states to ensure electric charging points are installed every 60 kilometers (37 miles) on major highways. Hydrogen refueling points would have to be available at the maximum interval of 150 kilometers.
The USA is now energy independent in practice which is a significant economic advantage relative to Europe. That has resulted in a growing disinterest in ensuring global energy security which increases costs to Europe. At the same time the bloc’s industrial base is under threat from China’s continued development; with the risk of the historic trade surplus reversing. That’s particularly true of the automotive sector. This evolving situation has also sharpened focus on China’s ambitions for global economic domination.Click HERE to subscribe to Fuller Treacy Money Back to top