The EU claims a new policy framework is needed beyond the original 2020 to ensure regulatory certainty for investors and a coordinated approach among Member States.

To achieve the overall 40% reduction in green house gas emissions, the sectors covered by the EU emissions trading system (EU ETS) will have to reduce their emissions by 43% compared to 2005. Emissions from sectors outside the EU ETS would need to be cut by 30% below the 2005 level.

A 43% greenhouse gas reduction target in 2030 in the ETS translates into a cap declining by 2.2% annually from 2021 onwards, instead of the rate of 1.74% up to 2020.

According to the European Commission, the 2030 framework builds on the experience of, and lessons learnt from, the 2020 climate and energy framework. It also takes into account the longer term perspective set out by the Commission in 2011 in the Roadmap for moving to a competitive low carbon economy in 2050, and the Energy Roadmap 2050.

These documents reflect the EU's goal of reducing greenhouse gas emissions by 80-95% below 1990 levels by 2050, as part of the effort needed from developed countries as a group.

‘The real-world impact of today’s adopted targets will very much hinge on how Europe will actually go about them. It is up to the incoming Juncker Commission to make sure they are met in real life and not just on paper and give investors the right signals,’ commented Nusa Urbancic, clean energy manager of T&E.

‘Keeping transport out of the ETS and adopting new fuel efficiency standards for all vehicles are one example. Limiting the role of bioenergy and biofuels – zero emissions on paper, often a lot in reality – in favour of solar and wind is another.’

According to T&E, the Council deal is short on details in the promotion of renewable energy in transport, however.

'Most biofuels currently used have no or very limited climate benefits, but their use still costs the EU €6bn every year. The Commission has already recognised that these biofuels should not receive and support post-2020,' continued Urbancic. 

‘Biofuels are an object lesson in what happens if you set wrong targets. Juncker’s commission has the chance to fix this once and for all by focusing their attention on low carbon energy sources, especially clean electricity, that deliver for the climate. Ensuring that we spend the billions of public money on sustainable electrification of transport instead of bad biofuels should be a top priority.’