The brief: Provisional agreement on EU Climate Law has been reached

A provisional agreement between co-legislators on the European Climate Law was reached on April 21st. This seems to be an important step if the European Union really wants to set out a change for a sustainable future.

The previsions

As one of the key elements of the European Green Deal, the European Climate Law enshrines the EU’s commitment of reaching climate neutrality by 2050. This agreement on the European Climate Law is a key milestone for the von der Leyen Commission, delivering on one of the commitments announced in the President’s Political Guidelines in July 2019.

In addition to the 2050 climate neutrality target, the deal reached strengthens the European framework for climate action. It does so by introducing an ambitious 2030 climate target of at least 55% reduction of net emissions as compared to 1990, with clarity on the contribution of emission reductions and removals.

How it could change the current situation

According to the European Commission, the agreement strengthens the European framework for climate action by introducing a process for setting a 2040 climate target. This takes into account an indicative greenhouse gas budget for 2030-2050 to be published by the Commission. It also comprises of a commitment to negative emissions after 2050 and the establishment of a European Scientific Advisory Board on Climate Change, that will provide independent scientific advice. Finally, stronger provisions on adaptation to climate change, strong coherence across Union policies with the climate neutrality objective and a commitment to engage with sectors to prepare sector-specific roadmaps charting the path to climate neutrality in different areas of the economy.

Other agreements reached

At the same time, the European Commission adopted an ambitious and comprehensive package of measures to help improve the flow of money towards sustainable activities across the EU. The objective is to enable investors to re-orient investments towards more sustainable technologies and businesses. These measures will be instrumental in making Europe climate neutral by 2050. Again, according to the European Commission, they will make the EU a global leader in setting standards for sustainable finance.

The EU Taxonomy Climate Delegated Act aims to support sustainable investment by making it clearer which economic activities most contribute to meeting the EU’s environmental objectives.

We will be following the effects of the Commission’s announcements with due care to see if the goals foreseen do actually become a reality.