This week, the European Commission (EC) has published its and on a 2040 climate target, aiming for a 90% net reduction in greenhouse gas (GHG) emissions by 2040, compared to the 1990 baseline.
Specifically, the EC selected this target after assessing three different options, all aligned with achieving carbon neutrality by 2050:
•A target up to -80%, maintaining a linear emissions reduction trajectory between 2030 and 2050
•A target between -85-90%, in addition to the current policy framework (Fit-for-55), foreseeing an uptake of carbon capture, e-fuels, and emissions reduction in the land sector
•A target between -90-95%, requiring the extension of the current policy framework while fully developing a carbon management industry and promoting increased consumption of e-fuels
Compared to the draft communication to which SGS INSPIRE had access to in January, references to a proposed carbon pricing mechanism for the agricultural sector and a phase-out of fossil fuel subsidies have both been removed.
It's important to remember that the communication only outlines the EC’s recommendations, it’s a non-binding and non-legislative document. A formal legislative proposal for a 2040 target is expected only during the next EC mandate, starting on November 1 this year.
Among some key highlights of the communication regarding transport, the document states the following:
•The transport sector is expected to decarbonize through a combination of technological solutions and carbon pricing
•The starting point is the full implementation of the existing legislation to reduce emissions by at least 55% by 2030
•CO2 standards for cars and vans -100% vs 2021 from 2035 onwards
•CO2 standards for heavy-duty vehicles (HDVs): -100% vs 2019 from 2040, more efficient operation of freight vehicles and delivery of goods by optimising multi-modal delivery solutions
•Deployment of carbon capture, utilization and storage (CCUS) technologies as well as the use of captured carbon in industry. Synthetic fuels are mentioned a few times in the context of CCUS. On the same day, the EC published a on industrial carbon management