On the climate, a historic appointment missed in the European Parliament?

• “Potentially a regulatory big bang”, “the biggest legislative package within the EU since the creation of the single market and the euro”.

  It is in these terms that the “fit for 55” is sometimes presented.

• This package of 14 legislative proposals, designed by the European Commission, aims to enable the EU to achieve its new climate objectives.

  It remains to obtain the approval of MEPs and the Council of the European Union.

• A first decisive step took place this Wednesday at the European Parliament.

  MEPs voted for 2035 the end of thermal vehicles, the most ambitious proposal on the table.

  But the only real good news of the day?

"If we vote for this climate package, Europe will not look like what it is today," urged Tuesday, before the European Parliament, Pascal Canfin, who chairs the environment committee.

An appeal to the MEPs who faced him not to lack ambition this Wednesday, at the time of voting eight major texts of the "Fit for 55", this legislative package which should allow the EU to achieve its new objectives climatic.

“Potentially a regulatory big bang”.

In any case "the largest legislative package within the EU since the creation of the single market and the Euro", describes Thomas Pellerin-Carlin, director of the Energy Center of the Jacques Delors Institute, pro-European think tank .

But what exactly are we talking about?

Where does this “Fit for 55” come from?

What are the main measures?

And was the European Parliament ambitious on Wednesday?

takes stock.

What is the “fit for 55”?

In June 2021, European climate law sets a new binding greenhouse gas reduction target by 2030. From -40% compared to 1990 levels, the cap drops to -55%.

Brussels is thus responding to the commitment made by the signatories of the Paris Climate Agreement in 2015 to revise their climate ambitions upwards every five years.

But just aligning the numbers is not enough.

It is also necessary to define the roadmap which should make it possible to achieve these new objectives.

This is the whole purpose of “Fit for 55”, a package of 14 legislative proposals drawn up by the European Commission last year.

It remains for the European Parliament and the Council of the European Union to vote on this roadmap.

This is what happened, in part, this Wednesday.

What was on the table this Wednesday?

They had to decide on 8 of the 14 texts of the “Fit for 55”.

All likely to impact the daily life of Europeans, like the proposal to ban the end of the sale of new thermal vehicles (gasoline, diesel, hybrid) by 2035.

Thomas Pellerin-Carlin also mentions the end of free allowances on the European carbon market, a fundamental measure in his view.

Established in 2005, this carbon market is a trading system for quotas (tons of CO2) between companies.

Those emitting more than the quantity allocated to them buy from those in the opposite situation.

A way to put a price on CO2 and encourage companies to emit as little as possible.

This worked well in the energy sector*, recalls the economist of the Jacques Delors Institute.

On the other hand, in heavy industry (cement, steel, paper, fertiliser, etc.), the effect remained nil due to the distribution of quotas which remained mostly free.

The aim was to prevent these industries from losing competitiveness vis-à-vis their competitors outside the EU.

The end of these free quotas is all the more crucial as it conditions another flagship proposal of the “Fit for 55”: that of a carbon border tax, [MACF for carbon border adjustment mechanism].

It would make it possible to apply the same CO2 price to imports of goods produced outside the EU in the sectors covered by the carbon market.

A way to put everyone on an equal footing while the coexistence of the MACF and free quotas, which doubly favor European companies, inevitably offend our neighbours.

Another key subject: the creation of a second European carbon market covering the road transport and heating sectors, including those for individuals.

Households would then be in the front line, since they would pay this price of CO2 by going to the pump or by heating with fuel oil or fossil gas.

With the risk of social movements like that of the "yellow vests".

“The Parliament's environment committee had submitted this interesting proposal to postpone this carbon market for individuals for several years,” says Neil Makaroff.

And, before, to set up a social fund for the climate, to help the most modest households to renovate their housing or change their thermal vehicles.

It remained to be seen whether the MEPs would follow, this Wednesday, in plenary.

How did MEPs vote on Wednesday?

Not as expected.

A first vote, at 12:30 p.m., concerned texts relating to the reform of the carbon market.

Unsurprisingly, it blocked the end of free quotas.

"Three dates were in debate to record their end: 2030, 2032, 2034, which postponed the entry into force of the carbon tax at the borders by the same amount each time", begins Neil Makaroff.

On Monday, an amendment pushed by the EPP (pro-European right, first force in Parliament) demanded maintenance until 2034, doing the business of industry lobbies.

Far too late for the Greens and the progressive alliance of Socialists and Democrats (S&D).

This Wednesday, they voted against the final text, like the far right.

Result: the proposal was rejected (340 votes against, 265 for) and sent back to committee to be discussed again.

For the sake of consistency,

the vote was also postponed on the carbon border adjustment and the social climate fund.

“We are going to start these renegotiations now, to return as quickly as possible to the plenary with a stable compromise”, commented Pascal Canfin on Twitter.

June 23, he expected a little later.

After today's failure of the carbon market reform in Parliament 🇪🇺 we are giving ourselves 15 days to reach an agreement and vote on this essential climate reform on June 23.

— Pascal Canfin (@pcanfin) June 8, 2022

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And the end of the sale of thermal vehicles?

It was the key measure for the second vote of the day, scheduled for 5:30 p.m.

Again, Neil Makaroff and Thomas Pellerin-Carlin expected a tense vote.

“It too has been the subject of intense lobbying by several car manufacturers, pushing for the date to be as late as possible, or even none at all”, indicates the person in charge “ Europe” of the Rac.

But, this time, it is indeed the most ambitious proposal that has been adopted by MEPs, who have recorded this end at 2035.

The following ?

The discussions around “Fit for 55” are far from over.

First, this Wednesday, the European Parliament only considered, as we said, 8 of the 14 proposals.

The energy section, with proposals aimed at accelerating the deployment of renewable energies in Europe or adopting more ambitious objectives in terms of energy efficiency, will be voted on later.

"Probably in September in October, the outbreak of the war in Ukraine requiring us to look again at these issues," says Neil Makaroff.

Above all, Parliament is not the only one to have to decide.

The Council of the European Union, which represents the governments of the 27 Member States, must do the same.

"It should do so at its next meeting, June 27 and 28," continues Neil Makaroff.

This is the next stage, which will be followed by a third, during which the Parliament and the Council will have to agree on a final text.

The stated objective in Brussels is to conclude these negotiations by the end of the year.

An optimistic calendar for Thomas Pellerin-Carlin and not necessarily desirable if it comes at the expense of ambition.

He expects more on early or mid 2023.

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