Debate: Binding annual greenhouse gas emission reductions by Member States  - Land use, land use change and forestry  - Revision of the Market Stability Reserve for the EU Emissions Trading System
Date: MONDAY, 13 MARCH 2023
Speaker: Frans Timmermans
Language: EN

Increasingly, we are aware of a geopolitical dimension of the climate crisis – how it can engender conflict, how it can engender huge migration flows, how it can engender a race for water and food, which would, by definition, create violent conflict. So please, please acknowledge this and let’s not draw the climate crisis into a left-right controversy or a political controversy between political parties. And I have to say, Parliament has shown great responsibility in finding compromises on these issues. And I have to also say: we still have a lot of work to do. So if we remain committed towards more ambitious climate action to reach climate neutrality by 2050, as set out in the climate law, then we have to act. The climate laws are a compass to 2050. It sets an irreversible path towards climate neutrality and guides all sectors of the economy in their efforts to decarbonise. We all collectively have a responsibility to make sure we prepare Europe for the transition. With the choices we’ve all agreed on the Effort Sharing and LULUCF Regulations as well as on the MSR, we make the most ambitious, consistent and socially fair choices to drive the decarbonisation of our economy. The Effort Sharing Regulation will ensure that Member States cut their emissions by 40% by 2030 in sectors currently responsible for 60% of the EU’s emissions. The LULUCF Regulation will ensure that we make full use of the emissions removal potential of our land and forests. Due to the changes in the Effort Sharing and LULUCF Regulations – and the ETS obviously – agreed by the co-legislators, we are on track to achieve 57% reductions rather than 55%, which is an outstanding achievement. So, as Parliament always wished that we would say ‘at least 55’, it is now being proven by the facts. The compromises you will vote tomorrow are therefore key to deliver on our objective to become climate neutral by 2050. Now we must make sure that the agreed package is adopted and implemented as soon as possible. Let me briefly stress some key aspects of the three compromises. The LULUCF deal is a milestone for European carbon sinks in the land sector. We’ve set an overall EU-level objective of 310 metric tonnes of net removals, and the honourable representative, Mr Lins, is right when he says that this is a tall order, but it can be done. I would like to highlight another element: better and more accurate data lead to more effective policy decisions. Improved monitoring and tracking of changes in carbon stock are specifically required for areas under the spotlight – such as biodiversity protection and restoration goals – and thereby contribute to protecting and enhancing nature-based carbon removal. So the Commission is grateful for the support of Parliament on the improved monitoring of greenhouse gas emissions and removals by using digital technologies along the lines of our proposal. On ESR, let me first stress the remarkable support that this House has shown to translate the Fit for 55 ambition in the new effort sharing emission reduction targets for the Union and the Member States. Both co-legislators contributed to this excellent result and I am very happy that the general architecture of the Commission’s proposal is maintained. The text negotiated by Parliament requires Member States to achieve more reductions earlier on with balanced flexibilities. The compromise also reflects Parliament’s striving for transparency and accountability, with a reinforced compliance framework ensuring a fair and just transition. We don’t have the luxury to leave anyone behind. The text negotiated with the Council strikes the right balance between ambition and feasibility. 2030 is around the corner and the energy crisis only shows the need to accelerate the transition. The revised Effort Sharing Regulation sets a clear path for Member States to now plan and implement climate policies and actions in relevant sectors – road transport, buildings, agriculture and waste. So this House did an impressive job, and I would like to thank and congratulate the negotiating team for having worked well. And let’s not forget – extremely fast – for both LULUCF and Effort Sharing, the Commission has issued a statement during negotiations in relation to the assessment in its upcoming report on the review of the Governance Regulation of aspects related to access to justice in Member States. Access to justice remains an important support measure to help deliver the European Green Deal and a way to strengthen the role which civil society can play as a watchdog in the democratic space. Finally, very briefly, on the Market Stability Reserve: it’s a small but important element of the Fit for 55 package. It’s been a very successful instrument to absorb the structural surplus of allowances in the carbon market. And for it to act faster, the percentage of allowances in circulation to be placed in the MSR has been temporarily doubled from 12% to 24% until 2023. Without the proposal under discussion today, it would revert back to 12%. To continue reducing the surplus, ensuring market resilience, we proposed to maintain the doubled intake rate of 24%, as now agreed by the co-legislators. This provides predictability and maintains a well-functioning carbon market, which is a carbon market that step by step has to become a global carbon market for all the world to reduce their emissions.