On the proposal for a Regulation of the European Parliament and of the Council amending Regulation (EU) 2021/1119 establishing the framework for achieving climate neutrality
ITRE-AD-776778
Committee on Industry, Research and Energy · Rapporteur: Niels Fuglsang
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The committee opinion proposes amendments to the Regulation on the 2040 climate target, setting an EU-wide domestic target of at least 90% emission reduction by 2040 relative to 1990 levels.¶ It introduces flexibility through limited domestic permanent removals and high-quality international credits, and highlights the need for grid modernisation, electrification, and energy efficiency.¶¶¶
Committee position. The Committee on Industry, Research and Energy proposes amendments to the Commission's proposal, setting a domestic 2040 target of at least 90% reduction and adding flexibility mechanisms.¶¶
Key points
- Sets an EU-wide domestic climate target of at least 90% emission reduction by 2040 relative to 1990 levels.¶
- Calls for a limited role for domestic permanent removals to compensate for residual emissions from hard-to-abate sectors without offsetting necessary reductions.¶¶
- Allows a possible limited contribution of up to 3% of 1990 EU net emissions from permanent high-quality international credits under Article 6(4) of the Paris Agreement, cumulatively over 2036-2040, with a robust MRV system.¶
- Emphasises the need for significant expansion and modernisation of grids and interconnectors, and advancing electrification of industrial sectors.¶¶¶
- Highlights energy efficiency as a cross-cutting enabler for industrial decarbonisation and competitiveness, and the 'energy efficiency first' principle.¶¶
- Stresses the importance of regulatory stability, predictability, and confidence for industry, investors, and citizens, and avoiding strengthening the Linear Reduction Factor of the EU ETS.¶¶
- Calls for an effective and workable CBAM in the context of phasing out free allowances in the EU ETS.¶
- Requires the phase-out of fossil fuels and enhancing security of supply, and the need to modernise infrastructure for electricity, hydrogen, and carbon transport, storage, and utilisation.¶¶
- Calls for scaling up access to capital for clean technology manufacturing, promoting public-private partnerships, and increasing job creation in clean tech sectors with skills upgrading.¶¶
- Proposes a revised review clause requiring the Commission to report within six months of each global stocktake, assessing impacts on technology maturity, competitiveness, energy prices, and employment.¶
Who is affected
- European industry, particularly SMEs, mid-caps, and start-ups, will benefit from reduced administrative burdens and increased competitiveness.¶¶
- Member states will need to reflect cost-efficiency, affordability, and solidarity in post-2030 targets.¶
- Hard-to-abate sectors can use domestic permanent removals to compensate for residual emissions.¶