The European Commission has unveiled its proposed "Fit for
55" legislation to accelerate the EU's goal of reducing
greenhouse gas emissions. The new reduction target is 55% by 2030,
up from the previous target of 40%. The EU has it sights set on
Europe becoming the world's first climate neutral continent
with net-zero emissions by 2050.
The EU's approach consists of the implementation of
regulatory, tax and trade policies designed to expand the market
for clean energy and accelerate the reduction of greenhouse gas
emissions. Overall, the Commission proposes: (1) tightening the
current EU Emissions Trading Scheme and establishing a new
emissions trading system for fuel distribution for road transport
and buildings; (2) taxing high-carbon imports, aviation and
shipping fuel; (3) revising the Effort Sharing Regulation to set
binding national greenhouse gas targets for each EU member state;
and (4) strengthening carbon dioxide emissions standards for
vehicles and
