The 'Fit for 55' package that the European Commission presented last week includes a large number of energy and climate proposals to reduce emissions in the EU by 2030% by 55. Biomass plays a role in the energy mix.
European Commissioner Frans Timmermans stated that this specifically concerns biomass from residual wood, where the principle of cascading is applied. It means that woody biomass must first be used in a way that delivers the highest economic and environmental value.
At the same time, the European Commission confirms its commitment to protect all European primary forests, peatlands and wetlands. Biomass may not be extracted in those places. That is why the Fit for 55 package also includes new draft laws for forestry in Europe, with stricter and more transparent governance rules. Smaller bioenergy plants must also meet the stricter emission requirements that already apply to larger plants. After 2026, subsidies will no longer be possible for wood-fired power stations.
The plan is criticized both by environmental organizations, which do not think it goes far enough, and by the forestry industry, which says that the plan ignores the economic role of forests. Countries with large forestry sectors, such as Finland and Sweden, oppose the Commission's plan. They may receive support from other major European countries, such as France.
Carbon leakage
Another brand new bill concerns the Carbon Border Adjustment (CBAM), intended to prevent carbon leakage. This can occur when industries move their production abroad because they pay less for CO2 emissions there, after which they can then sell their products cheaply in the EU.
The European Commission therefore wants an import tax on non-sustainable products. The measure specifically concerns cement, fertilizers, iron and steel, aluminum and electricity. According to the rules of the World Trade Organization, WTO, this protection of the internal market would mean that European companies may no longer receive free emission allowances under the ETS. That would mean double support for its own industry.
Green fuels
Further new bills focus on social facilities for climate action, the mandatory blending of biofuels and e-fuels with aviation fuel and the decarbonization of shipping by increasing the use and production of sustainable alternative fuels.
A number of existing laws will also be revised, including the ETS emissions allowance system, the LULUCF rules on land use, land use change and forestry and the Renewable Energy Directive (RED).
More information can be found on the European Commission website.
Image: EC – Audiovisual Service
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