European Council adopts key laws as part of 'Fit for 55' package
European Council adopted (25-Apr-2023) laws of the 'Fit for 55' package, including revision of the Emissions Trading System (ETS) directive, amendment of the MRV shipping regulation, revision of the ETS aviation directive, regulation establishing a Social Climate Fund and regulation establishing a carbon border adjustment mechanism. The council stated the laws adopted will enable the EU "to cut greenhouse gas emissions within the main sectors of the economy, while making sure that the most vulnerable citizens and micro-enterprises, as well as the sectors exposed to carbon leakage, are effectively supported in the climate transition". Highlights include:
- EU ETS: New rules increase the overall ambition of emissions reductions by 2030 in the sectors covered by the EU ETS to 62% compared to 2005 levels;
- Emissions from aviation:
- Free emission allowances for the aviation sector will be gradually phased out and full auctioning from 2026 will be implemented. Until 31-Dec-2030, 20 million allowances will be reserved to incentivise the transition of aircraft operators from the use of fossil fuels;
- EU ETS will apply for intra European flights, including departing flights to the UK and Switzerland, while the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) will apply to extra European flights to and from third countries participating in CORSIA from 2022 to 2027;
- Transparency on aircraft operators' emissions and offsetting will also be improved and a monitoring, reporting and verification framework for non-CO2 aviation effects will be set up. By 01-Jan-2028, building on the results of that framework, the Commission will propose, where appropriate, mitigation measures for non-CO2 aviation effects.
The laws will now be signed by the Council and the European Parliament and published in the EU's Official Journal before entering into force. [more - original PR]