EXPLANATORY MEMORANDUM

1.CONTEXT OF THE PROPOSAL

•Reasons for and objectives of the proposal

On 4 March 2020, the Commission adopted its proposal for a Regulation of the European Parliament and of the Council establishing the framework for achieving climate neutrality and amending Regulation (EU) 2018/1999 (European Climate Law).

The proposal for a European Climate Law Regulation forms part of a broader package of ambitious actions announced in the Commission’s European Green Deal Communication. The European Green Deal launches a new growth strategy for the EU that aims to transform the EU into a fair and prosperous society, improving the quality of life of current and future generations, with a modern, resource-efficient and competitive economy where there are no net emissions of greenhouse gases in 2050 and where economic growth is decoupled from resource use. It also aims to protect, conserve and enhance the EU's natural capital, and protect the health and well-being of citizens from climate- and environment-related risks and impacts. The European Green Deal reaffirms the Commission’s ambition to make Europe the first climate-neutral continent by 2050. The proposal aims at providing a direction by enshrining the EU 2050 climate-neutrality objective in legislation, enhancing certainty and confidence on the EU’s commitment as well as transparency and accountability. The original proposal stated that the Commission would present by September 2020 an impact assessed plan to increase the EU’s greenhouse gas emission reduction target for 2030 to at least 50% and towards 55% compared with 1990 levels in a responsible way, and that the Commission would propose to amend the proposal accordingly. This was reflected in Article 2(3) and recital 17 of the initial Commission proposal. The 2030 Climate Target Plan demonstrates that increasing the EU’s emission reduction target for 2030 to at least 55% is both feasible and beneficial.

With a view to achieving climate neutrality in the Union by 2050, it is therefore proposed that the EU’s greenhouse gas emission reduction target for 2030 is increased to at least 55% compared with 1990 levels, including emissions and removals. This proposal modifies the initial Commission proposal (COM(2020) 80 final) to include the revised target in the European Climate Law.

•Consistency with existing policy provisions in the policy area

The explanatory memorandum of the initial Commission proposal sets out in detail the consistency with existing policy provisions. The 2030 Climate Target Plan shows that an increase of the target implies greenhouse gas emission reduction efforts by all sectors, and enhancement of removals, which need to be enabled by various policies. By June 2021, the Commission will therefore review all relevant related policy instruments, as set out in Article 2a(2) of the proposal.

•Consistency with other Union policies

The initiative is linked to many other policy areas, as all EU actions and policies should foster a just transition towards climate neutrality and a sustainable future, as described in the explanatory memorandum of the initial Commission proposal. Furthermore, after adoption of the initial Commission proposal, the Coronavirus disease outbreak led to a public health crisis and socio-economic shock of unprecedented scale. The unprecedented European policy response to COVID-19 offers a unique opportunity to accelerate the transition to a climate-neutral economy and a sustainable future while mitigating the severe impacts of the crisis. The proposal is consistent with the Communications on Next Generation EU and a revamped long-term EU budget, in which the Commission set out an ambitious recovery plan, guiding and building a more sustainable, resilient and fairer Europe for the next generation. They show the commitment to ‘do no harm’ with regard to our climate and environmental ambitions, ensure that the money is spent in line with the objectives of the European Green Deal, and accelerate the twin green and digital transitions in a socially fair manner.

2.LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY

•Legal basis

The legal basis for the proposal is Article 192(1) TFEU, the same as for the initial Commission proposal.

•Subsidiarity (for non-exclusive competence)

The explanatory memorandum of the initial Commission proposal details the subsidiarity and proportionality considerations. These explanations remain valid also for the proposed amendments, as an EU-wide, economy-wide target can only be set at EU level.

•Choice of the instrument