Climate & Industry
Climate & Industry
The European Green Deal, presented by the European Commission President in December 2019, outlines Europe’s vision to achieve net zero emissions by 2050. Proposing policies and overarching targets for emissions reductions, the EU Green Deal provides a ‘growth strategy’ for every major aspect of the European economy from energy to food, transport to manufacturing and construction as well as goals to halt biodiversity loss and reduce pollution.
This ambitious policy agenda aims to transform the European Union from a high to low carbon economy by boosting European industry competitiveness and encouraging private sector investment, while ensuring a fair and inclusive transition for workers in the regions affected.
Major policy areas of the EU Green Deal are:
- Climate Action
- Clean/Renewable Energy
- Circular Economy
- Sustainable buildings and construction
- Sustainable Mobility
- Sustainable Agriculture and Food Systems
- Eliminating Pollution
Europe’s ‘Green Recovery’ Plan
The Next Generation EU plan proposed on 27 May 2020, sets out a stimulus package of EUR750 billion of loans and grants that places climate change at the centre of Europe’s post-pandemic economic recovery. Priority sectors identified for investment include a ‘renovation wave’ for building energy efficiency and green heating, acceleration of renewable energy and green hydrogen, clean mobility and the transition to a circular economy. These funds are additional to EU’s long term €1.1 trillion multiannual financial framework (MFF) for 2021 – 2027, which was adopted by the European Council in December 2020.
A summary of the key programs and instruments proposed to support the Recovery Plan can be found here. Key facts and figures about the NextGenerationEU and the MFF can be found here.
Recently proposed and launched key policy directives and strategies under the EU Green Deal include:
- EU Green Deal
- European Sustainable Investment Plan
- Just Transition Mechanism
- EU Climate Law
- European Climate Pact
- European Industrial Strategy
- Circular Economy Action Plan
- EU Biodiversity Strategy for 2030
- ‘Farm to fork strategy’
- EU Strategies for Energy System Integration
- EU Hydrogen Strategy
- 2030 Climate Target Plan
- Renovation Wave
- Methane Strategy and Chemicals Strategy for Sustainability
- Offshore renewable energy
- Sustainable and Smart Mobility Strategy
- New European Bauhaus
- New EU strategy on adaptation to climate change
- Organic Action Plan
- Zero pollution Action Plan
- Sustainable blue economy
In July 2021, the European Commission adopted a package of proposals to make the EU’s climate, energy, land use, transport and taxation policies fit for reducing net greenhouse gas emissions by at least 55% by 2030, compared to 1990 levels. The legislative tools in this “Fit for 55 package” to deliver on the targets agreed in the European Climate Law include:
- Emission Trading System Scheme (proposed in July 2021)
- Effort Sharing Regulation (proposed amendment to Regulation (EU) 2018/842, July 2021))
- Revision of the Regulation on the inclusion of greenhouse gas emissions and removals from land use, land use change and forestry (proposal, July 2021)
- Amendment to the Renewable Energy Directive to implement the ambition of the new 2030 climate target (proposal, July 2021)
- Proposal for a Directive on energy efficiency (recast, proposed July 2021)
- Amendment of the Regulation setting CO2 emission standards for cars and vans (proposal, July 2021)
- Revision of the Directive on deployment of the alternative fuels infrastructure (proposal, July 2021)
- ReFuelEU Aviation and FuelEU Maritime (proposal, July 2021)
- Revision of the Energy Tax Directive (proposal, July 2021)
- Carbon Border Adjustment Mechanism for selected sectors (proposal, July 2021)
Australia’s first National determined contributions (NDC) to the United Nations Framework Convention on Climate Change (UNFCCC) includes an economy-wide target to reduce greenhouse gas emissions by 26 to 28 per cent on 2005 levels by 2030. Australia will submit its next NDC, with a post–2030 target, to the UNFCCC in 2025.
For information on Australia’s climate change strategies and on how it is meeting its international climate change commitments, check the Department of Industry, Science, Energy and Resources webpage.
Australia’s whole-of-economy Long-Term Emissions Reduction Plan published in October 2021 sets out how to achieve net zero emissions by 2050. The Plan outlines how the Federal Government aims to: drive down the cost of low emissions technologies and to deploy these technologies at scale; help our regional industries and communities seize economic opportunities in new and traditional markets and work with other countries on the technologies needed to decarbonise the world’s economy.
The Long-Term Emissions Reduction Plan brings together and builds on other Australian Government strategies such as:
- Technology Investment Roadmap
- National Hydrogen Strategy
- Future Fuels and Vehicles Strategy
- Modern Manufacturing Strategy
- Critical Minerals Strategy
- Bioenergy Roadmap
- National Energy Productivity Plan
- Trajectory for Low Energy Buildings
- National Waste Policy and Action Plan
- National Soil Strategy
- Delivering Ag2030
- 2021 Australian Infrastructure Plan
For more on Australian Federal Climate Change policies, schemes and initiatives see here.