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

Committee on Transport and Tourism · Rapporteur: Virginijus Sinkevičius

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SHORT JUSTIFICATION

The proposed EU 2040 climate target shows that Europe stays on course to achieve climate-neutrality by 2050 at the latest. This is not only crucial to keep 1.5°C alive, it is also necessary to provide clarity and predictability for citizens and economic actors, in particular investors. The race to become the global leader in net-zero technologies has already started, and Europe should speed up to remain in pole position.

Accelerating the deployment of renewable energy and net-zero technologies across all sectors of the economy is crucial to maintain the competitiveness of Europe's industry. Even more so in the transport sector, where global competitors such as China, are already investing massively in the production of batteries and of sustainable fuel for aviation and shipping.

Achieving climate neutrality requires a timely contribution from all economic sectors for which emissions or removals of greenhouse gases are regulated in Union law. From the relevant perspective of transport and its ongoing efforts to decarbonise across all modes, in order to signal a strong sectorial commitment towards this endeavour, it seems appropriate to shift the focus away from a possible increase of flexibility between sectors. This in turn would give a mixed signal and lead to a delay in the necessary technological innovation and the ramp up of infrastructure such as recharging and refuelling points.

Accelerating the transition to clean mobility, including through the uptake of zero-emission vehicles and related technologies and a modal shift to sustainable transport options, will not only contribute to reduce our emissions, but would also enhance air quality, lower reliance on imported fossil fuels, and foster modern, efficient and affordable mobility solutions for citizens and businesses alike.

While the rapporteur personally disagrees with other flexibilities introduced by the Commission in its proposal, in his capacity taking on this Opinion as Vice Chair of the Committee on Transport and Tourism, this short draft Opinion focuses on core issues falling under the competence of the Committee on Transport and Tourism. The intention here is to allow for a targeted opinion and in consideration of the need to adopt the Opinion in advance of the vote to be taken by the lead Committee.

AMENDMENTS

The Committee on Transport and Tourism submits the following to the Committee on the Environment, Climate and Food Safety, as the committee responsible:

Amendment 1

Proposal for a regulation

Recital 8

Text proposed by the Commission

Amendment

(8) The Union has in place a regulatory framework to achieve the 2030 climate target. The legislation implementing that target consists, inter alia, of Directive 2003/87/EC, which establishes the EU ETS, Regulation (EU) 2018/842 of the European Parliament and of the Council8 , which introduced national targets for reduction of greenhouse gas emissions by 2030, and Regulation (EU) 2018/841 of the European Parliament and of the Council9 , which sets net carbon removal targets for the land use sector. The Commission should assess how the relevant Union legislation would need to be amended in order to achieve the 2040 climate target. When designing the future architecture, the Commission should prepare detailed impact assessments, including the impacts on competitiveness and small and medium enterprises, and consider taking necessary measures, including legislative proposals as appropriate. A number of elements to facilitate the achievement of the 2040 target should be appropriately reflected, including a potential limited contribution towards the 2040 target of highquality international credits under Article 6 of the Paris Agreement, in the second part of the 2030-2040 decade, in line with accounting rules of the Paris Agreement; the role of domestic permanent removals (Biogenic emissions Capture with Carbon Storage (BioCCS) and Direct Air Capture with Carbon Storage (DACCS)) in the EU ETS; enhanced flexibility across sectors. In order to assess the social, economic and environmental impacts, the future architecture should be based on robust impact assessments. The future architecture should also foster convergence while taking into account fairness and Member States’ specificities, including those of islands and outermost regions.

(8) The Union has in place a regulatory framework to achieve the 2030 climate target. The legislation implementing that target consists, inter alia, of Directive 2003/87/EC, which establishes the EU ETS, Regulation (EU) 2018/842 of the European Parliament and of the Council8 , which introduced national targets for reduction of greenhouse gas emissions by 2030, and Regulation (EU) 2018/841 of the European Parliament and of the Council9 , which sets net carbon removal targets for the land use sector. The Commission should assess how the relevant Union legislation would need to be amended in order to achieve the 2040 climate target. When designing the future architecture, the Commission should prepare detailed impact assessments, including the impacts on competitiveness and small and medium enterprises, and consider taking necessary measures, including legislative proposals as appropriate. A number of elements to facilitate the achievement of the 2040 target should be appropriately reflected, including a potential limited contribution towards the 2040 target of high quality international credits under Article 6 of the Paris Agreement, in the second part of the 2030-2040 decade, in line with accounting rules of the Paris Agreement; the role of domestic permanent removals (Biogenic emissions Capture with Carbon Storage (BioCCS) and Direct Air Capture with Carbon Storage (DACCS)) in the EU ETS. In order to assess the social, economic and environmental impacts, the future architecture should be based on robust impact assessments. The future architecture should also foster convergence while taking into account fairness and Member States’ specificities, including those of islands and outermost regions.

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8. Regulation (EU) 2018/842 of the European Parliament and of the Council of 30 May 2018 on binding annual greenhouse gas emission reductions by Member States from 2021 to 2030 contributing to climate action to meet commitments under the Paris Agreement and amending Regulation (EU) No 525/2013 (OJ L 156, 19.6.2018, p. 26, ELI: http://data.europa.eu/eli/reg/2018/842/oj).

9. Regulation (EU) 2018/841 of the European Parliament and of the Council of 30 May 2018 on the inclusion of greenhouse gas emissions and removals from land use, land use change and forestry in the 2030 climate and energy framework, and amending Regulation (EU) No 525/2013 and Decision No 529/2013/EU (OJ L 156, 19.6.2018, p. 1, ELI: http://data.europa.eu/eli/reg/2018/841/oj).

Or. en

Amendment 2

Proposal for a regulation

Recital 8 a (new)

Text proposed by the Commission

Amendment

(8a) The transport sector is one of the largest sources of greenhouse gas emissions in the Union. Transport emissions remain higher than their 1990 levels. Achieving the Union climate-neutrality objective, including the 2040 climate target, requires an acceleration of the modal shift towards sustainable transport means and increased private and public investments in transport decarbonisation solutions. In particular, the detailed Impact Assessment accompanying the Commission Communication of 6 February 2024 on “Securing our Future: Europe’s 2040 climate target and path to climate neutrality by 2050 building a sustainable, just and prosperous society” shows that EU transport emissions can be reduced by 95-96% by 2050 while maintaining a sustained growth in transport activity. This is achieved mostly through large-scale electrification (notably in road and rail transport) and improved energy efficiency, combined with an increased use of zero- and low-emission energy carriers in aviation and maritime which will almost fully replace fossil fuels by 2050. A modal shift to rail and active modes of transport has a significant role to play in reducing EU transport emissions and should be further incentivised. The Sustainable Transport Investment Plan should contribute to scale-up investments in transport decarbonisation solutions while supporting European industrial leadership in global clean tech innovation.

Or. en

Amendment 3

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point c

Text proposed by the Commission

Amendment

(c) the achievement of targets in a cost-effective way while ensuring that all sectors contribute their fair share of the achievement of climate neutrality within the Union by 2050 and net-negative emissions thereafter;

Or. en

Justification

As mentioned in recital 10 of Regulation (EU) 2021/1119, achieving climate neutrality should require a contribution from all economic sectors for which emissions or removals of greenhouse gases are regulated in Union law. Introducing enhanced flexibility across sectors to meet the EU 2040 climate target means that these sectors will have to reduce their emissions faster after 2040 to ensure that the Union's climate-neutrality objective is met, which is likely to be more costly.

Amendment 4

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point q a (new)

Text proposed by the Commission

Amendment

(qa) the benefits of circular economy and demand-side measures in reducing greenhouse gas emissions;

Or. en