Under the leadership of the Swedish Presidency, negotiations on the EU’s ambitious Fit for 55 climate package have been successfully concluded, heralding a major milestone in climate action. The comprehensive legislative package encompasses new and updated regulations in the domains of climate and environment, energy, and transport, with the goal of reducing emissions by at least 55 percent by 2030 and achieving climate neutrality by 2050.
The Fit for 55 climate package was initially proposed by the European Commission in July 2021 and has since undergone intensive deliberations between the Council and the European Parliament. Throughout the first half of this year, significant progress has been made under the Swedish Presidency, resulting in preliminary agreements with the European Parliament on key aspects of the package.
These agreements include measures related to renewable energy, energy efficiency, expansion of charging infrastructure, sustainable fuels for maritime and air transport. Notably, on 16 June, EU Member States reached consensus on legal instruments governing renewable energy and sustainable fuels for air transport. The Renewable Energy Directive establishes an ambitious target of achieving a renewable energy share of at least 42.5 percent, with a preference for 45 percent, by 2030, nearly doubling the current share. Additionally, sub-targets have been set for various sectors, and procedures for renewable energy supply will be streamlined while ensuring enhanced sustainability criteria for bioenergy.
During the Swedish Presidency, the Council approved several significant legal instruments, including the expansion of the Emissions Trading System (ETS) to cover new sectors and strengthen the existing emissions trading system, the establishment of the Social Climate Fund, the introduction of a carbon border adjustment mechanism to prevent carbon leakage, the Effort Sharing Regulation (ESR), the Regulation on greenhouse gas emissions from land use, land use change, and forestry (LULUCF), and rules mandating zero CO2 emissions for new passenger cars and vans from 2035.
However, certain proposals within the Fit for 55 package, such as reducing methane emissions in the energy sector, improving the energy performance of buildings, and reviewing the Energy Taxation Directive, are still under discussion and have not yet reached consensus. As these proposals were presented later in the process, further work will be carried out under the upcoming Spanish Presidency to advance these critical aspects of the climate package.
The successful conclusion of negotiations under the Swedish Presidency marks a significant step forward in the EU’s commitment to combatting climate change and achieving ambitious emissions reduction targets. The Fit for 55 climate package represents a collective effort to shape a sustainable future for Europe, highlighting the importance of international collaboration and decisive action in the face of the global climate crisis.