EU climate package: Do all Europeans now have to buy electric cars?

Will emissions trading now be the measure of all things?

Hendrik Kafsack

Business correspondent in Brussels.

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The trade in CO2 rights is regarded as the market-based instrument par excellence for reducing emissions. For this purpose, the number of CO2 rights is limited to the desired amount and auctioned to the participants or allocated free of charge. It is up to them whether and how they reduce emissions or whether they buy CO2 rights from others. The system relies on the participants becoming creative themselves and looking for solutions to reduce emissions. This has worked well since the price rose to more than 50 euros per ton. The number of rights is expected to decrease further by 2030. So far it was 2.2 percent a year. In the future it should be 4.2 percent. So far there has been trading in CO2 rights for industry, energy producers and intra-European air traffic. But they only cover 40 percent of the emissions.The Commission therefore now wants to include shipping as well. For journeys in and out of the EU, the shipowners should only have to show 50 percent of the rights. In addition, it wants to create a new emissions trading system for traffic and buildings in 2026. This means that all sectors except agriculture are covered by emissions trading. But he does not become the measure of all things. The Commission itself describes its package as a triangle of emissions trading, regulation and taxes, all of which are supposed to make a contribution to minus 55 percent.This means that all sectors except agriculture are covered by emissions trading. But he does not become the measure of all things. The Commission itself describes its package as a triangle of emissions trading, regulation and taxes, all of which are supposed to make a contribution to minus 55 percent.This means that all sectors except agriculture are covered by emissions trading. But he does not become the measure of all things. The Commission itself describes its package as a triangle of emissions trading, regulation and taxes, all of which are supposed to make a contribution to minus 55 percent.

Do all Europeans now have to buy electric cars?

The limit values ​​for cars are being tightened again. So far, manufacturers have had to reduce the average CO2 emissions of their new vehicle fleets by 37.5 percent by 2030 - compared to 95 grams per kilometer, which will apply in 2021. The commission wants to raise this target to 55 percent. In 2035, new cars should no longer be allowed to emit any CO2. That is in fact the end date for the combustion engine, even if the Commission does not explicitly say so. However, the zero emissions target should be re-examined in 2028. In order to facilitate the switch to electromobility, the Commission wants to oblige the EU states to expand the network of charging stations. In 2030, there should be a powerful charging station every 60 kilometers on the motorways and other important expressways. For the automotive industry it is positive thatthat it does not have to reduce emissions as much as Climate Commissioner Frans Timmermans originally planned, at least until 2030. Manufacturers have come to terms with the end of the combustion engine. It is now important for them that the expansion of the charging network progresses. The Commission also wants to reduce emissions from road traffic through new rules for energy taxes. In future, the minimum taxes should no longer be based on the amount, but rather on the energy content. This leads to higher taxes on diesel and lower taxes on biofuels and electricity.The Commission also wants to reduce emissions from road traffic through new rules for energy taxes. In future, the minimum taxes should no longer be based on the amount, but rather on the energy content. This leads to higher taxes on diesel and lower taxes on biofuels and electricity.The Commission also wants to reduce emissions from road traffic through new rules for energy taxes. In future, the minimum taxes should no longer be based on the amount, but rather on the energy content. This leads to higher taxes on diesel and lower taxes on biofuels and electricity.

How are citizens compensated for the higher costs?

Emissions trading for buildings and transport will drive up the costs of petrol and heating oil, where it starts - even if the Commission wants to keep the CO2 price low by allocating many CO2 rights to the two sectors. Nevertheless, households suffering from energy poverty will also hit a price of 20 to 25 euros, according to the commission. Countries with a lower level of prosperity would also be hit harder. The authority therefore wants to create a climate social fund. 25 percent of the revenue from the new emissions trading scheme is to flow into it. The Commission expects total revenues of 70 billion euros for the first seven years. The money should not only go to the poor countries. Poland should receive about 12.7 billion euros. Germany, too, is to receive around 5.9 billion euros.The states are supposed to use it to finance programs to modernize buildings, buy electric cars or help poor households, but must themselves contribute 50 percent of the total costs.