Fit for 55 Package: EU
Part of: GS Prelims and GS -III – Conservation; Climate change
In news Recently, the European Union (EU) released a new climate proposal, the Fit for 55 package.
- The EU in December 2020 submitted a revised Nationally Determined Contribution (NDC) under the Paris Agreement.
What are the Aims of the proposal?
- To deliver the NDC and carbon neutrality goal through proposed changes that would ensure a fair, competitive and green transition by 2030 and beyond.
- To achieve a balance between “regulatory policies” and market-based carbon pricing to avoid the pitfalls of each.
What are the Major Proposals?
- Renewable Sources: To increase the binding target of renewable sources to 40% from 32% earlier and improve energy efficiency by 36% (from 32.5% earlier) by 2030.
- Vehicular Carbon Emissions: It must be cut by 55% by 2030 and by 100% by 2035, which means a phaseout of petrol and diesel vehicles by 2035.
- Emissions Trading System (ETS): Creation of ETS for buildings and road transport to become operational from 2026. ETS are market-based instruments that create incentives to reduce emissions where these are most cost-effective.
- Social Climate Fund: To help low-income citizens and small businesses adjust to the new ETS, the EU proposes the creation of a Social Climate Fund
- Carbon-Border Adjustment Mechanism: It will put a price on imports from places that have carbon-intensive production processes.
- Enhance Sink Capacity: It has set a target to enhance the EU’s sink capacity to 310 million tonnes of CO2 equivalent,
India’s INDC, to be achieved primarily, by 2030
- To reduce the emissions intensity of the Gross Domestic Product by about a third.
- A total of 40% of the installed capacity for electricity will be from non-fossil fuel sources.
- India also promised an additional carbon sink (a means to absorb carbon dioxide from the atmosphere) of 2.5 to 3 billion tonnes of carbon dioxide equivalent through additional forest and tree cover by the year 2030.
- Indian Initiatives to Fight Climate Change:
News Source: DTE