EV fleet expansion key within updated Fit for 55 legislation

The European Commission has adopted two final pillars under its Fit for 55 legislative package, setting in place legally binding climate targets across sectors and prioritising the shift away from polluting vehicles as soon as possible.

The pillars include a revised Renewable Energy Directive and the REFuelEU Aviation Regulation.

Under these pillars, the EU has updated targets on renewable energy and energy efficiency, and will phase out new polluting vehicles by 2035, while boosting charging infrastructure and the use of alternative fuels in road transport, shipping and aviation.

The overall package also includes a target to boost natural carbon sinks and an updated emissions trading system to cap emissions, put a price on pollution and generate investments in the green transition.

The revised CO2 standards regulation will ensure that all new cars and vans registered in Europe will be zero-emission by 2035. As an intermediary step towards zero emissions, average emissions of new cars will have to come down by 55% by 2030, and new vans by 50% by 2030.

The new Regulation for the deployment of alternative fuels infrastructure (AFIR) sets mandatory deployment targets for electric recharging and hydrogen refuelling infrastructure along European roads.

In this way, states the Commission in a press release, publicly accessible recharging infrastructure for cars and vans will grow at the same speed as the EV fleet.

ReFuelEU Aviation also sets out EU-wide harmonised rules for the promotion of sustainable aviation fuels (SAF), with an increasing minimum share of SAF required to be blended with kerosene by aviation fuel suppliers and supplied to EU airports.

The FuelEU Maritime Regulation will promote the uptake of renewable and low-carbon fuels through the establishment of a target for gradual reductions for the annual average GHG intensity of the energy used onboard by ships.

Have you read:
Are Europe’s distribution grids ready for heavy-duty EVs?
European Parliament greenlights Renewable Energy Directive

A fair transition and competition

To ensure a level playing field for European companies, the new Carbon Border Adjustment Mechanism ensures that imported goods pay an equivalent carbon price on targeted sectors.

In combination with the EU Emissions Trading System, it reduces the risk of ‘carbon leakage’, whereby companies would move their production out of Europe to countries with less strict environmental standards.

Carbon pricing and an annual emissions cap aim to ensure that polluters pay, and that Member States generate revenues which they can invest in the green transition. The revised EU emissions trading system gradually extends carbon pricing to new sectors of the economy to support their emissions reductions, in particular transport and heating fuels, and shipping.

With this reform, Member States will now spend 100% of their emissions trading revenues on climate and energy-related projects and the social dimension of the transition.

The newly-created Social Climate Fund will dedicate €65 billion ($68.7 billion) from the EU budget, and over €86 billion ($90.9 billion) in total to support the most vulnerable citizens and small businesses with the green transition.

Boosting renewables and saving energy

The agreement on the revised Renewable Energy Directive sets the EU’s binding renewable energy target for 2030 at a minimum of 42.5%, up from the current 32% target. In practice, this would almost double the existing share of renewable energy in the EU. It is also agreed that Europe will aim to reach 45% of renewables in the EU energy mix by 2030.

On the Energy Efficiency Directive, negotiators agreed to a new EU-level target to improve energy efficiency by 11.7% by 2030. Member States will have to make annual savings of an average of 1.49% from 2024 to 2030. The public sector will lead the way, with a 1.9% annual savings target.

The agreement also includes the first ever EU definition of energy poverty. Member States will now have to implement energy efficiency improvements as a priority among people affected by energy poverty.

European Commission President Ursula von der Leyen said: “The European Green Deal is delivering the change we need to reduce CO2 emissions. It does so while keeping the interests of our citizens in mind and providing opportunities for our European industry.

“The legislation to reduce our greenhouse gas emissions by at least 55% by 2030 is now in place, and I am very happy that we are even on track to overshoot this ambition. This is an important sign to Europe and to our global partners that the green transition is possible, that Europe is delivering on its promises.”

Next steps

The implementation of the Fit for 55 legislation is now starting in the Member States. The National Energy and Climate Plans (NECPs) currently being finalised by Member States will need to integrate this new legislation and demonstrate how the 2030 climate and energy targets will be met at national level.

The Fit for 55 package was tabled in July 2021 to respond to the requirements in the EU Climate Law to reduce Europe’s net greenhouse gas emissions by at least 55% by 2030.

It was updated when the Commission proposed increased ambition on renewable energy and energy efficiency in the REPowerEU plan to respond to Russia’s invasion of Ukraine and boost Europe’s energy security.

The final legislative package is expected to reduce EU net greenhouse gas emissions by 57% by 2030. While this legislative package is a central part of the European Green Deal, work continues on other pending legislative files and proposals and on the implementation of legislation in the Member States.