Communication accompanying measures under the Energy Union Framework Strategy: legislative proposal on binding annual greenhouse gas emissions reductions by Member States from 2021 to 2030, legislative proposal on the inclusion of greenhouse gas emissions and removals from land use, land use change and forestry into the 2030 climate and energy framework and communication on a European Strategy for low-emission mobility

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS

1.Introduction

The global transition to a low-carbon and circular economy has begun, given fresh impetus by the Paris Agreement on climate change and the 2030 Agenda on Sustainable Development. This transition is necessary in order to provide jobs, growth and investment opportunities for present and future generations of Europeans, while mitigating dangerous climate change. If the EU does not maintain and exploit its first mover advantage when fostering renewable energy, energy efficiency and competing on the development of other low carbon technology markets globally, other regions will. Europe's economic model is expected to change. It is our shared responsibility to ensure that the transition is fair and based on solidarity, so that none are left behind. The Energy Union framework strategy contributes to this goal.

The package of measures presented by the Commission today helps Europe to prepare for the future and to stay competitive. It is primarily addressed to Member States, since they will be in the forefront of deciding how to implement measures to meet the agreed greenhouse gas emission target for 2030.

But Member States cannot do it alone. The mobilisation in the run up to the Paris climate conference showed how important non-state actors are for delivering change. The EU also expects action from its businesses, farmers, researchers, investors, educators and social partners, amongst others. At the same time, the EU also has the responsibility to boost their action by providing EU-wide measures and enabling environment. It supports action by its cities, in which 80% of us live. They are among the most dynamic and innovative actors in implementing a low-carbon, circular economy, often exceeding national levels of ambition. Rural communities are equally important, as they play a crucial role in providing sustainable natural resources and protecting the environment for future generations.

The EU is doing its utmost to maintain the positive momentum for climate action at the global level. No land is an island when faced with the threat of catastrophic climate change. That is why, at the highest political level, G7 leaders have committed to accelerate the transition to an energy system that enables decarbonisation of the global economy, as well as to set a deadline for ending most fossil fuel subsidies, pledging to end government support for coal, gas and oil by the end of 2025. The EU's cities will play a pivotal role in a new coalition of cities around the world, which could be a further opportunity to engage internationally in continuing the fight against climate change at local level. The growing sense of urgency to address the link between climate change, and fragility and security was reaffirmed in this year's EU climate diplomacy action plan.

The EU has all the potential to turn the climate change challenge into an opportunity. In this global context, Europe is a leader in developing innovative low-carbon technologies and services, not only in the energy sector but also in industry, buildings and transport. It should maintain this leadership. We have to continue to equip Europeans with the right skills for the low-carbon economy, invest in our children's future and help industry to adjust to changing needs. Europe has promised ambitious action, and it will deliver what it has promised.

2.Guiding principles of a regulatory framework for a low-carbon transition in all sectors of the economy

The EU agreed in October 2014 a clear commitment: a binding, economy-wide emissions reduction target of at least 40% by 2030, compared to 1990 levels. This commitment is in line with a cost-effective pathway to reach the EU's long-term climate objective and became the basis for EU's international commitment under the Paris Agreement on climate change and will be delivered by all Member States collectively.

To start implementing that commitment, in July 2015, the Commission presented a proposal to reform the EU Emissions Trading System to make it fit for purpose and drive investments after 2020 in the industrial and power sectors. The European Parliament and Member State governments in the Council should do their utmost to adopt this proposal quickly. The present package of measures addresses the other main elements of the economy that will contribute to climate action: the sectors of buildings, transport, waste, agriculture, as well as land-use and forestry.

Building on the guiding principles for EU climate action so far, the new regulatory framework is based on the key principles of fairness, solidarity, flexibility and environmental integrity.

To ensure fairness and solidarity, embedded in the climate and energy framework for 2030 as agreed by the European Council, the Commission proposes differentiated national emission reduction targets for 2030 that take account of the gross domestic product of each Member State to reflect relative wealth. The levels of the targets for individual richer Member States are further adapted among themselves to take into account cost-effectiveness.

Furthermore, the proposal creates a flexible system in which Member States can reduce emissions jointly, across a number of sectors and over time, reflecting also the different structure of Member States' economies. It will allow trade in emission allocations between Member States or the development of projects to reduce emissions in other Member States. This will facilitate investments flows across the EU towards where they are most needed to modernise the economy and where they will deliver the highest benefits at the lowest costs.

This is the first time that the land-use and forestry sector is included in the EU energy and climate framework. The Commission proposes a careful balance between more incentives to capture carbon and reduce emissions from soil and forests and the need to maintain the environmental integrity of the EU climate framework, so as to incentivise emission reductions in the buildings, transport and agriculture sectors. Therefore flexibility towards other sectors will be limited.

The proposed Regulation for these sectors provides more robust accounting rules for land, land-use and forestry. As forest management is the main source of biomass for energy and wood production, more robust accounting rules for forest management will provide a solid basis for Europe's renewables policy and the further development the bio-economy after 2020.

3.Fostering the enabling environment for low-carbon transition in the EU

Building on this regulatory framework, it is up to the Member States to design measures that are most appropriate to reap the benefits of the shift to a low-carbon economy and achieve their targets. The EU will support the Member States with a number of tools and enabling measures.

3.1.The Energy Union Strategy and other sector-specific initiatives

As regards buildings, the Commission is reviewing the existing EU-framework for energy efficiency and will present proposals later this year, including on how to attract financing into buildings renovation. The Commission will also finalise this year a voluntary industry-wide recycling protocol for construction and demolition waste. Given the more limited scope for emissions reductions in agriculture and land-use sectors, the land-use and forestry proposal will create additional incentives for carbon sequestration in these related activities. Moreover, the reformed Common Agricultural Policy provides different instruments and measures in its two pillars to promote climate action. The review of EU-wide policy addressing the use of fertilisers is expected to contribute to a reduction of emissions from mined and synthetic fertilisers. After agriculture, the waste sector is currently the second most important sector emitting non-carbon dioxide emissions. The Waste Management Framework Directive and in particular the Landfill Directive, for which the Commission proposed revisions last year, are expected to contribute to a significant reduction of emissions from waste.