EU countries and European Parliament agree with Timmermans Climate Laws

The climate plans of Vice-President Frans Timmermans of the European Commission have been finally approved by negotiators from the European Parliament and the EU countries.

Not only companies but also consumers will soon have to pay for the emission of greenhouse gases such as carbon dioxide CO2. A newly established social climate fund should prevent the consequences of the energy transition for citizens as much as possible.

The agreement now reached is not only about the Climate Act Fitfor55, but also about its consequences for other EU legislation. The approved projects form the core of the “Fit for 55” package presented by the European Commission in summer 2021. 

The aim is to help the countries of the European Union reduce carbon dioxide emissions by 55 percent by 2030 and eventually become carbon neutral. The agreement still has to be ratified by the European Parliament and member states, but this is considered a formality.

In concrete terms, the negotiators agreed to tighten up the existing ETS emissions trading. The current free allowances will be phased out more quickly, and there will be fewer certificates in circulation. That should motivate companies to produce less carbon dioxide.

In addition, the ETS system will also apply to the transport sector, starting with large-scale sea and shipping.

There will also be a fine for non-insulated homes and buildings. The EU countries and housing associations must accelerate the process of making their homes more energy efficient. There is a EU subsidy for that.

Consequences for tenants and consumers, such as the increase in heating costs, must be compensated by a new European 'social climate fund'. 86 billion euros will be made available for this, from the sale of emission rights to companies. The EU countries must report annually to Brussels on this.