Revision of the EU ETS will need to be aligned with climate neutrality by 2050 and deliver on increased 2030 ambitions.
The upcoming revision of the EU ETS directive presents the opportunity to raise the ambitions of the EU ETS, aligning it to the objective of climate neutrality by 2050 and to the new, increased 2030 greenhouse gas emissions reduction target, as soon as the negotiations will be finalised. As noted in previous responses, ZEP believes that the 2030 target should put the EU on a cost-efficient pathway towards net-zero by 2050.
Achieving climate neutrality will prove to be an unprecedented challenge for the European Union. As the European Climate Law states, reaching the objective of climate neutrality within the European Union by 2050 will require efforts from all economic sectors in the Union. For energy-intensive industries such as cement, lime and steel – key industrial chains for the European economy – the pathway towards net-zero greenhouse gas (GHG) emissions by 2050 will be technically and economically challenging and the risk of carbon leakage is a serious factor that has to be taken into account.
With the European Green Deal and the objective of climate neutrality by 2050, the European Commission has a possibility to review all related pieces of legislation. This is an opportunity to remove overlaps or contradictions between existing policies and to fully focus on the net-zero target and GHG emissions reduction. By introducing legislation that is directly compatible with net-zero and focused on GHG/CO2 threshold-driven measures, the energy and climate transition will be more cost-efficient, providing a clearer framework for industry and EU regions to plan and realise their decarbonisation pathways.
The European Commission today presented their plan to increase the EU’s 2030 target for emission reduction to at least 55%, up from 40%. This ambitious revision of the target would further support Europe’s commitment to become climate-neutral by 2050, in line with the European Green Deal.
The EU Commission has indicated that carbon capture, utilisation and storage technologies will play an important role in ensuring that a 55% reduction in emissions can be met, particularly as a solution for the industrial transition towards net-zero. CCS and CCU technologies can contribute considerably to reducing emissions from energy-intensive and difficult-to-decarbonise industries, while safeguarding industrial activity, maintaining jobs, and boosting economic growth.
ZEP supports the European Union’s commitment to reach climate neutrality by 2050, defined as net-zero greenhouse gas (GHG) emissions by 2050. To this end, carbon capture and storage (CCS) and carbon capture and utilisation (CCU) technologies play a crucial role.
In the context of the revision of the EU ETS Monitoring and reporting rules, ZEP has provided a response, stating that all CO2 transport modalities – pipeline, ship, barge, truck, and train – should be included in the EU ETS.
The value of CCS and CCU projects to climate change mitigation is crucial, however, how to assess the added value, to be more exact, is complex. There are many factors that could play a major role, such as which boundary conditions and assumptions to use.
With this report, we are introducing three fundamental characteristics for the classification of technologies for climate change abatement of CCU and CCS projects: mitigation effect, net energy consumption, and implementation period. This report also includes examples showing the value of this concept.