Europe | Is the EU on track to be “Fit for 55” by 2030?
Earlier in July, the European Commission put forward a concrete set of proposals aimed at providing substance to the EU’s commitment to cut greenhouse gas emissions to “at least 55%” below 1990 levels by 2030 and to reach “climate neutrality” (i.e., net-zero greenhouse gas emissions) by 2050.
What you will learn:
- The new “Fit for 55” proposals from the Commission mark the beginning of a process of reform that seeks to align the EU’s laws and policies with its overall climate and environmental targets.
- At the centre of the proposals is a plan to more effectively price carbon by tightening the existing emissions-trading scheme and extending a new scheme to include emissions from shipping, road transport, and buildings.
- Since this will largely be a regressive tax, a new Social Climate Fund will aim to recycle the revenues raised, while a new carbon border adjustment mechanism aims to limit the scope for carbon leakage in a limited number of key sectors.
BoK’s monetary policy to tighten even as hiking cycle ends
Even without rate hikes, central banks' monetary policies can effectively tighten if the nominal neutral rate falls below the policy rate. We expect this will be the case for the Bank of Korea this year, as the gap between the policy rate and the nominal neutral rate widens.Find Out More
Why China isn’t about to save the world economy
The earlier and faster than expected ending of zero-Covid restrictions in China bodes well for the global economy and adds to the recent run of positive news.Find Out More