EUROPEAN UNION(EU) CLIMATE ACTION LEGISLATION – “FIT FOR 55”
The EU is a group of 28 countries and operates collectively in economic and political matters. European Union was made as a single political entity to dissolve all the warfare issues that are among European countries with World War II.
Thus, they have a standardised system of laws that are applicable for all the members of the Union, and they have to live with Unity.
If we take a glance at the governance of the European Union, then it is as given below-
Court of Justice of the European Union(Judiciary)
European Central Bank
WHY IN THE NEWS?
European Union has proposed a new climate proposal, known as “The Fit for 55 Package”, in mid-July, 2021.
Now one can asks, why is it called so? The answer is, it aimsthe to reduce EU greenhouse gas emissions by 55% by 2030. Initially, the EU has just announced its aim, but now they have created a law for it.
HOW THEY ARE GOING TO ACHIEVE THEIR AIM?
- BY MAKING MORE USE OF RENEWABLE RESOURCES
As the title suggests European Union is going to increase the use of renewable resources.
Increase the binding target of renewable resources to 40%(which is 32% earlier) and improve energy efficiency by 36%(which is 32.5% earlier) by 2030.
- BAN ON VEHICLES
A complete ban on vehicles run by petrol and diesel by 2035.
To build charging stations at every 60 kilometres, on major highways, which will encourage the people to rely on the chargeable vehicles.
- EMISSIONS TRADING SYSTEM
This legislation will lead to the formation of an Emission trading system which will be operational from 2026 for buildings and road transport, separate from the EU’s current ETS.
Emission Trading system is a system under which the regulator will first define the total mass of the population(air) that can be created in a period of time, and this is done while taking all the factories in mind.
- CARBON-BORDER ADJUSTMENT MECHANISM
This will be a unilateral charge for the European Union, it simply means the EU is going to put a price on imports that consist of Carbon-Intensive production processes.
But, as said already, this is unilateral, and thus going to affect the developing countries. And, on the brighter side, it can decrease the use of Carbon worldwide. This is said by the United Nations Conference on Trade and Development.
- ENHANCE SINK CAPACITY
Target is set to enhance the EU’s sink capacity to 310 million tonnes of CO2 equivalent, which it hopes will be achieved through specific national targets by member countries.
IMPLICATIONS ON INDIA
India is the 3rd largest trading partner of Europe(value of trade of goods in 2020 with EU was $ 74 Billion), so the Carbon Border adjustment mechanism will affect India and proved to be an adverse policy for the exports of India in the EU.
It also opens a new market for Indian Industry for example – electric vehicles.
There are also some Indian Initiatives for Climate Change-
1. National Clean Air Programme(NCAP)
2. UJALA Scheme
3. National Action Plan on Climate change
4. International Solar Alliance
5. Coalition for Disaster Resilience Infrastructure