Research Briefing | Aug 19, 2021

Europe | Is the EU on track to be “Fit for 55” by 2030?

Ipad Frame - 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.
Back to Resource Hub

Related Services

Post

UK: Sterling’s woes, Kwarteng’s vows, Bailey in the middle

The negative market reaction to last week's fiscal announcements appears to be a function of doubts over the credibility of the UK government's long-term fiscal plans. Though we think the structural position is not as bad as last Friday's drop in asset prices implies, it's clear the government will struggle to retain credibility if it fails to engage with market concerns.

Find Out More
Tokyo, Japan

Post

BoJ to look through a temporary decline in monetary base

The Bank of Japan (BoJ) left monetary policy unchanged at today's (22nd Sep) meeting, maintaining current short- and long-term interest rates, despite another wave of yen weakening and upward pressures on JGB yields. 

Find Out More