Europe plans wide-ranging climate rules to slash emissions

The European Commission proposed a package of climate laws Wednesday designed to dramatically reduce the continent’s greenhouse gas emissions in pursuit of making Europe climate-neutral by 2050.

The interconnected set of proposals cover everything from forestry and agricultural strategies to stronger vehicle emissions standards to new emissions-reduction targets for European Union member states. Dubbed “Fit for 55,” the proposals aim to cut at least 55% of the continent’s greenhouse gas emissions by 2030 compared to 1990 levels.

The most controversial element is likely to be the carbon border adjustment mechanism, which would level tariffs on goods from outside the EU based on the emissions required for their production.

“This will ensure that European emission reductions contribute to a global emissions decline, instead of pushing carbon-intensive production outside Europe,” the EC explained in announcing the legislative package. It is also certain to upset the continent’s global trading partners and may also run afoul of World Trade Organization regulations.

What comes next: A lot of lobbying and discussion. The proposals, which build on existing laws designed to meet Europe’s earlier goal of 40% reduction by 2030, have to be approved by the member states and EU legislators.

They are certain to come under fire from a variety of different sources, including the continent’s automotive industry, which is likely to object to drastic reductions in emissions standards for new vehicles, and from coal-dependent countries, such as Poland.

Why this matters: It underscores the European Commission’s commitment to achieving a net-zero emissions balance by 2050.

The commission timed the announcement of the Fit for 55 package ahead of the annual U.N. Climate Change Conference of the Parties, scheduled to begin in Glasgow in November. This will put pressure on other major emitters, including the United States and China, to arrive at the summit with ambitious plans of their own.