EU Parliament adopts industry laws to cut greenhouse gas emission

By Agnes Szucs

BRUSSELS (AA) — The European Parliament adopted five new acts on Tuesday to help meet the EU's climate goals, including new rules on carbon emissions for the maritime and aviation industries, as well as for non-EU trade partners.

EU lawmakers gave the green light for several key pieces of the bloc's "Fit for 55" legislative package, aiming to reduce the its collective greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels, the European Parliament said in a statement.

The new measures aim to reform the so-called Emission Trading System (ETS), the EU's carbon market under which polluters are required to purchase "carbon credits."

Under the new rules, ETS sectors, such as energy-intensive iron, paper, or oil industries, must cut their greenhouse gas emission by 62% compared to 2005 levels.

Free allowances for companies will be phased out from 2026, including for the aviation sector.

The amendments also create a separate emissions regime for road transport and construction, and, for the first time, include the maritime industry in the ETS.

To prevent unfair competition from non-EU trade partners, the bloc also introduced a new carbon leakage instrument.

Importers of iron, steel, cement, aluminum, fertilizers, electricity, and hydrogen will be obliged to pay the difference of carbon price as if the products were made in the EU.

The European Parliament also authorized the establishment of a €65 billion ($71 billion) Social Climate Fund to support vulnerable households, small businesses, and transport users to adapt to the higher climate standards.

EU member countries have yet to adopt the new laws, but that procedure is expected to be a mere formality after the EU institutions reached the deal on the Fit for 55 package in December.