Environmental (Commonwealth Union): Maintaining aggressive long-term climate targets at the same time, which is balanced with growing political pressure to improve short-term economic issues. The Commission’s put forth a 90% emissions reduction plan for 2040 which is already resistant from industry and member states’ opposition may see that plan watered down via the use of more international carbon credits which in turn may lower what is required of them at home but still report the the same over all target.
Allowing in more international carbon credits, we also see a push for carbon capture in hard-to-abate sectors, and we may also see a greater use of biofuels, which in some cases may be controversial.
The letter brings up many political hot-button issues at once. On the issue of emissions pricing for transport and heating fuels (ETS2), which is very sensitive, von der Leyen puts forth that we see putting in place mechanisms that will put a stop to very large price fluctuations that may in turn see public protest. Also we see the issue of “front loading,” which is a practical solution to put carbon pricing into practice at the same time as we address the very real issue of affordability. Also, she puts forward the idea of reducing electricity taxes, which in present times has at times made gas a more attractive option, which in turn goes against the push for greater use of electricity.
What we see is a world that puts out results over which it prescribes means to that end. By introducing international credits, carbon capture, and advanced biofuels, von der Leyen seems to be in support of neutral technologies that do what is most cost-effective in reducing emissions. This is a shift from past EU climate policy, which did not hesitate to put forward very specific tech solutions. But this also brings up issues of accountability and environment for instance will international credits report real addition of emissions reduction or just an accountancy game.
Maintaining climate leadership at the same time we address economic concerns, supporting European industry as we push for decarbonization. The end result will be which of these flexible policies will in fact see us achieve climate progress and also break through political impasse, or which will leave us out of regulatory certainty that businesses require for clean energy transition. As Europe comes to a climate policy crossroads von der Leyen is putting forward pragmatism over purity that it is better to achieve most of what we set out to do through flexible means then to insist on perfect policy which in the end does nothing.
