The recent audit by the European Court of Auditors (ECA) of EU’s actions to achieve its climate and energy targets by 2030 and reduce greenhouse gas emissions by 55 % did not take into account the latest updates of the Fit for 55 package and the REPowerEU plan.
As previously reported, the EU auditors found little indication that EU’s actions to achieve its ambitious climate and energy targets were sufficient. A Commission spokesperson told The Brussels Times that the co-legislators (the European Parliament and the Council), agreed last March to increase the targets for both energy efficiency and renewable energy.
The agreement raised the EU's binding renewable target for 2030 to a minimum of 42.5%, up from the previous 32% target, almost doubling the existing share of renewable energy in the EU. The energy efficiency first principle is given legal strength with a clear requirement for EU countries to take energy efficiency into consideration and established an EU energy efficiency target of 11.7% for 2030
The Commission also noted the auditors' view that there is a lack of transparency on the use of flexibilities for meeting the greenhouse gas emission reduction and renewable energy targets. While the use of flexibilities is enshrined in the legal framework, there are legal provisions that will allow the Commission to increase the transparency of information related to transfers.
Notably, the Commission will publish the information available about the range of prices paid per annual emission allocation (AEA) transferred. The Commission is committed to make such information accessible to EU citizens in an easy, transparent and comprehensive manner.
As regards the reporting of GHG emissions, the reporting is fully in line with the United Nations Framework Convention on Climate Change (UNFCCC) reporting guidelines, the Commission said. EU includes not only national domestic emissions but also intra-European international aviation and intra-EU international shipping in its greenhouse gas emissions targets.
A more controversial issue is carbon leakage caused by GHG emissions in the production of imported goods. Emissions embedded in international trade relate to the accountability for emissions taking place in other countries. These are subject to regulations put in place by other states.
“Climate targets need to be defined in a consistent manner to ensure they are comparable over time. Using a different accounting system for emissions would require an overhaul of how we define climate targets. Comparing targets under one set of accounting rules with values under a different set of accounting rules raises questions of consistency,” according to the Commission.
“The analysis available shows the EU’s consumption-based emissions and production-based emissions show the same declining trend," the Commission noted. Both are expected to continue to decline. "In fact, the EU’s consumption-based emissions are estimated to have reduced more since 2005 than production-based emissions.”
Nevertheless, in view of the risk of carbon leakage, the EU has agreed to put in place a carbon border adjustment mechanism (CBAM) as of 2026, which is expected to contribute to decreasing the carbon content of imports of the EU and of international trade.
Member states were required by 15 March 2023, and every 2 years thereafter, to report to the Commission on the implementation of their 2020 National Energy and Climate Plans (NECPs) to reach the 2030 objectives and targets as defined in their plans.
The current status of submissions of the progress reports and the published reports themselves are available through DG ENER’s Website. The Commission will deliver an EU-wide progress assessment by the end of October.
The EU’s climate targets are set out in the European Climate Law. A consultation on establishing a 2040 climate target was recently closed on 23 June. The results of the consultation will be now be analysed as part of an impact assessment report. Progress will be reviewed every five years but the Commission declined to reply to a question if it considers to set an interim reduction target before 2030.
Did the audit report come in time for the update of the NECPs and remaining legislation in the Fit to 55 package?
The ECA audit took place prior to the recent adoption of much of the Fit for 55 legislation, whose impact was too early to assess, the Commission replied.
While more needs to be done to accelerate climate and energy measures on the ground and to mobilise funding, the Commission considers that substantial progress is being made towards reaching the higher ambition for 2030 and that the newly-agreed or almost-agreed legislation under the Fit for 55 package puts the EU on track for increasing its emissions reductions in this decade.
The update of the NECPs for the period 2021-2030 will be a key moment to take stock of the policies and measures being put in place to meet the 2030 climate and energy ambition. The Commission is committed to working closely with member states on these plans, on reporting of progress, and on implementation of the agreed legislation.
Despite its reservations, in its formal reply to ECA, the Commission accepted all audit recommendations (some of them partially).
M. Apelblat
The Brussels Times
