EU parliament to discuss 2040 GHG target rejection

: Emissions
25/09/01

The European Parliament will on 4 September discuss a legal report rejecting proposals for a 90pc greenhouse gas (GHG) reduction target for 2040, compared with 1990 levels. The Czech draftsman who called for the bill to be rejected notes the urgency of adopting a 2040 target, ahead of Cop 30 climate talks in Belem, Brazil, is "unjustified".

The report will first be voted on by parliament's environment committee towards the end of September. Negotiations between parliament and the EU member states' governments for a final legal text could start "immediately" after the whole parliament vote — expected in early October — an official noted.

Draftsman Ondrej Knotek, a Czech member of the far-right Patriots for Europe (PfE) group, called for the commission's July legislative proposal for a legally binding EU-wide GHG target for 2040, to be "rejected in order to free up capacity for a clear change of course".

The EU is "definitively not obliged to commit to a legally binding target for 2035 or 2040" in order to be able to present a non-legally binding commitment at Cop 30, Knotek said, adding "vaguely worded flexibilities" indicate that the EU finds it increasingly difficult to implement its climate policy. He listed the proposal to allow from 2036 the use of international carbon credits under Article 6 of the Paris Agreement to meet up to 3pc of the 2040 target and the use of domestic permanent removals under the EU's emissions trading system (EU ETS) as two examples which the EU has found it difficult to reach consensus on.

The deadline for tabling committee amendments to Knotek's report is 8 September. A set of compromise amendments — if supported by parliament's largest centre-right EPP group, together with the centre-left S&D, Greens and liberals — would carry a majority. If the 8 September deadline is not met, amendments to the report could still be submitted to the plenary session.

The NGO is pushing for carbon credits to only be used as a separate contribution in addition to a domestic 90pc reduction target by 2040.

Meetings this week between diplomats will further clarify whether or not EU member states will be able to finalise their position on the bloc's 2040 climate target on 18 September, when the adoption of the EU nationally determined contribution (NDC) will be put to vote. Agreement between parliament and EU states on the 2040 target would form the basis for the commission and EU states to derive an NDC, through to 2035, to be submitted to the UN climate body — the UNFCCC.

By Dafydd ab Iago

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25/12/19

Australia needs electricity carbon policy: Commission

Sydney, 19 December (Argus) — The Australian government should introduce a national market-based policy to drive electricity sector decarbonisation, potentially modelled on the existing safeguard mechanism, economic research and advisory body the Productivity Commission (PC) said in a final report today. The PC had previously recommended applying the safeguard mechanism to electricity generators at the facility level, but it may be better to consider this issue separately, it noted in a final inquiry report into "investing in cheaper, cleaner energy and the net zero transformation". "Multiple policy options will need to be considered for the electricity sector, and even if a baseline-and-credit scheme is preferred, it may be better to keep this separate from the safeguard mechanism, at least at first, to avoid risks of uncertainty and disruption in the carbon credit markets that support that policy," the PC said. Currently there is little relationship between the emissions intensity of Australia's remaining coal-fired power plants and their announced retirement dates, according to the commission. Recognising the value of emissions reduction would pave the way for more emissions-intensive plants to retire earlier, it argued. Electricity excluded from safeguard mechanism Under the safeguard mechanism, facilities emitting more than 100,000t of CO2 equivalent (CO2e) in a compliance year across several sectors earn safeguard mechanism credits (SMCs) if they report scope 1 emissions below their baselines, and must surrender SMCs or Australian Carbon Credit Units (ACCUs) if their emissions are above the threshold. The electricity sector, Australia's largest emitter, is effectively excluded from the mechanism because the emissions reduction policy for the segment has been focused on renewable electricity targets. The mechanism applies a single sectoral baseline of 198mn t CO2e/yr across all electricity generators connected to Australia's main electricity grids, which is way above recent data — emissions from the electricity generation sector reached a combined 138.9mn t CO2e in the 2023-24 compliance year. A decision on whether to expand the mechanism to electricity may be considered in the upcoming safeguard mechanism review in 2026-27 . NEM review But any new policy will need to complement reforms arising from the National Electricity Market (NEM) review, which also received a final report this week . The decision will also need to be consistent with several policies and agreements already in place to support new investment or manage the exit of coal plants across Australia, the PC noted. While the existing Capacity Investment Scheme (CIS) and the proposed Electricity Services Entry Mechanism (ESEM) scheme mainly target renewable output or capacity, a least-cost emissions-reduction policy would help companies deciding when to retire coal and gas plants, according to the commission. This will be even more important if the Australian government prioritises firming auctions, which may support new gas-fired plants. Emissions policy uncertainty has been a major barrier to investment in gas-powered generation, the PC said. "Firming auctions will be more effective if project proponents know in advance how their emissions will be treated," it noted. Apart from a policy to drive electricity sector decarbonisation, the PC's final report urges the government to expand the safeguard mechanism , phase out fuel tax credits for on-road heavy vehicle operators, and reduce barriers to adopting low-emissions technology for heavy vehicles. And it also calls the government to phase out the fringe benefits tax exemption for electric vehicles (EVs), a recommendation that was criticised by industry body EV Council . By Juan Weik Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US House passes bill to expedite permitting

25/12/18

US House passes bill to expedite permitting

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2026 set to be among 4 hottest years: UK Met Office

25/12/18

2026 set to be among 4 hottest years: UK Met Office

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Denmark pledges $9.5bn over 15 years for climate goals

25/12/18

Denmark pledges $9.5bn over 15 years for climate goals

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N Zealand proposes ETS governance penalties

25/12/18

N Zealand proposes ETS governance penalties

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