ZEP is pleased to provide input to the consultation on the draft delegated acts, outlined as follows:
1. Comments on the principles of the European Taxonomy for Sustainable Finance
2. Hydrogen threshold
3. Electricity threshold
4. CO2 transport
5. Biomass with CCS
6. Waste-to-Energy with CCS
7. Carbon Capture and Utilisation
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.
A new political reality in EU and beyond with climate change at the heart.
With the European Green Deal and European Climate Law, the European Union has increased its climate ambitions and formalised its support for the target of climate neutrality by 2050. Related to the European Climate Law, the European Commission has recently proposed to increase the current 2030 greenhouse gas (GHG) emissions target to reflect the increased climate ambitions of the EU. The Commission’s proposal – currently in negotiation with the European Parliament and Member States – outlines a plan to increase EU GHG emissions reduction target to at least 55% compared to 1990 levels by 2030 within the European Union.
The increased EU ambition for GHG emissions reduction by 2030 will make the role of CCS even more critical and the large-scale deployment of CCS within the 2020s becomes crucial to support the climate ambitions of the European Union.
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.
ZEP letter to DG CLIMA on CO2 shipping in EU ETS - ZEP highlights that allowing for the possibility to use ships, trains and trucks as means of CO2 transport to the Northern Lights project in the EU ETS is critical. This decision is crucial for the development of CCS in Europe, and a necessary basis for the cross-border CO2 transport and storage projects that are presently on the European Commission TEN-E list of Projects of Common Interest. ZEP believes that this important outcome will also have a positive effect for other upcoming CCS projects in Europe, paving the way for other European CO2 emitters to connect to storage sites.
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.