Latest news with #EUEmissionsTradingSystem
Euronews
4 days ago
- Business
- Euronews
EU open to carbon offsets on path to 2040 emissions target
The European Commission formally proposed a 90% carbon emissions reduction target by 2040 in an amendment to its Climate Law on Wednesday, as a pathway to achieving zero emissions by 2050. The 90% emissions reduction target allowed for the controversial use of international carbon credits to account towards the goal, a mechanism that allows countries or companies to buy emission reduction credits from projects outside the EU. While these credits can theoretically represent genuine climate action, critics argue they often act as a license to pollute, letting wealthier nations avoid making domestic changes. The Commission opened the door to outsourcing a portion of Europe's climate effort by effectively allowing the capture or removal of carbon to happen beyond EU borders. "We're broadening the solution space," said Climate Commissioner Wopke Hoekstra. 'Part of the work, part of the emission reductions, can be done outside the European Union.' The Dutch Commissioner pointed out that the vast majority of reductions, including carbon capture, will still take place within Europe. Concerns and limits While the original climate law stipulated that both 2030 and 2050 targets must be met through domestic efforts, the Commission now suggests that a limited share of international credits could count toward the 2040 goal. The Commission's own Scientific Advisory Board has previously expressed scepticism about the use of international offsets—not opposing them entirely, but warning they should supplement, not replace, domestic action. To address these concerns, the Commission proposes capping international credits at 3% of the 2040 target. This figure is rooted in Article 6 of the Paris Agreement, a clause largely shaped by the EU, and aligns with Germany's stance on the issue. A senior Commission official described the cap as a way to balance European investment priorities with global climate cooperation. 'We believe it's important not to go for a very high proportion of these credits,' the official said. 'This sends the right signal to both European actors and international partners: we're open to using such credits, but only if they are well-executed and uphold high integrity.' Additionally, these credits will only be permitted during the second half of the next decade (2036–2040), giving time to build more robust partnerships and ensure the availability of high-quality credits. The Commission official also specified that any international credits must align with the Paris Agreement, demonstrate environmental effectiveness, and be supported by rigorous monitoring, reporting, and verification systems, similar to the EU's own emissions trading scheme. Domestic flexibilities expanded Beyond offsets, the amendment introduces more sectoral and domestic flexibilities to help achieve the 2040 target in a cost-effective and socially just way. This includes incorporating permanent carbon removals into the EU Emissions Trading System (EU ETS) and allowing cross-sectoral compensation. For example, if a country exceeds emissions reductions in the transport or waste sectors, it could use that overperformance to compensate for underperformance in the land use sector. While such flexibilities already exist under the current Fit for 55 framework, the new approach seeks to expand them. Executive Vice-President Teresa Ribera explained she often hears from member states performing strongly overall, especially in sectors like housing or transports, but struggling in others like aviation. 'Shouldn't we, without lowering the bar, allow them to overachieve in some areas while being more flexible in others?' According to Ribera, these changes reflect a pragmatic evolution of the EU's climate strategy, aiming to preserve ambition while accounting for diverse national circumstances.
Fibre2Fashion
6 days ago
- Business
- Fibre2Fashion
EU power costs could drop 57% with renewables: EEA
The European Environment Agency (EEA) report 'Renewables, electrification and flexibility — for a competitive EU energy system transformation by 2030' finds that the European Union has already demonstrated its ability to shift away from fossil fuels, with electricity-sector CO2 emissions dropping significantly over recent decades. In comparison, progress in decarbonising heating and transport, where gas and oil consumption dominate, is slower. The European Environment Agency report finds that scaling up renewables and electrification could cut EU variable electricity generation costs by up to 57 per cent by 2030, while enhancing energy independence and reducing reliance on imported gas. Achieving this requires boosting renewable capacity, doubling grid flexibility, and coordinating infrastructure. In 2022, higher gas prices doubled the EU energy import bill, bringing it up to 4 per cent of GDP. The report underscores that renewables, particularly solar and wind, offer a sustainable path toward increased energy independence. By investing in domestic renewable electricity generation, alongside stronger efforts to improve energy and resource efficiency, Member states can replace volatile fossil fuel imports with available, lower-cost and cleaner energy sources. 'This is not just about achieving climate targets. Shifting to more renewables and electrification is an opportunity to reduce dependence on imported fossil fuels. That would lower wholesale electricity prices in the medium term, and reinforce Europe's resilience and strategic autonomy in an increasingly uncertain geopolitical context,' said Leena Ylä-Mononen, EEA executive director . A forward-looking analysis by the European Environment Agency projects that meeting the EU's 2030 goals for renewables and energy efficiency could reduce variable electricity generation costs by up to 57 per cent compared to 2023 levels. Although long-term benefits include lower consumer prices, initial savings may be offset by investments needed to enhance grid flexibility and bolster national infrastructure. The report emphasises that greater reliance on renewables and electrification charts a course toward increased energy independence for Europe, reducing vulnerability to fluctuating gas imports. However, capturing these benefits requires major shifts in investment and system design. Cutting EU power costs and boosting energy security depends on three priorities: increasing renewable capacity to 77% by 2030, doubling grid flexibility through smart systems and storage, and enhancing EU-wide coordination to reduce disparities and improve resilience. Electrification of home heating and industry, powered by heat pumps and deep renovation of inefficient buildings, will be vital to phase out fossil fuels already in the short term. In industry, predictability under the EU Emissions Trading System — the main economic instrument addressing emissions from this sector will incentivise further emission reductions. In transport, accelerating the adoption of electric vehicles — combined with infrastructure for walking, cycling and collective transport — will drive both decarbonisation and consumer savings. The report also encourages Member States to coordinate policy and technology efforts. This will require aligning taxation and pricing signals across the whole energy system and phasing out fossil fuel subsidies, which reached record levels in 2022–2023. Turning around the stagnating electrification trend by 2030 requires clearer economic signals from across the whole energy system. Guiding private consumers' decisions regarding buildings and transport are likely to require more comprehensive policy packages, in addition to price signals.
Euronews
20-06-2025
- Politics
- Euronews
No, the EU is not banning CO2 in drinks
An alleged screenshot from the European Commission website circulating online says that the EU will ban carbon dioxide in soft drinks, beer and mineral water from 2027. It says that the Commission is doing away with CO2 in drinks to reduce around 400 million tonnes of annual emissions, as part of its "Fit for 55" programme. Anyone flouting the new rule would be subject to fines of up to €50,000 per litre, according to the supposed webpage. However, a search of the European Commission's website shows that no such statement exists, and the EU's "Fit for 55" package doesn't include any proposal to ban CO2 in drinks. "Fit for 55" is a climate and energy initiative designed to reduce greenhouse gas emissions by at least 55% by 2030, compared to levels in 1990. It "ensures a just and socially fair transition, maintains and strengthens innovation and competitiveness of EU industry while ensuring a level playing field vis-à-vis third country economic operators, and underpins the EU's position as leading the way in the global fight against climate change," according to the European Commission. Some of its measures include CO2 emissions standards for vehicles, moving towards zero emissions from new cars and vans by 2035, as well as reforming the EU Emissions Trading System and bringing in a Carbon Border Adjustment Mechanism to place a carbon price on imports of certain goods to prevent carbon leakage and ensure fair competition. However, there's nothing about banning carbonation in drinks and there's no credible source anywhere else that corroborates the claim. The screenshot of the alleged commission press release also doesn't fully look the part, showing that it's not real. In general, it doesn't look like any recent press releases and uses a photo of European Commission President Ursula von der Leyen from 2019, rather than a current one. The photo was taken on 11 December 2019, according to AP, while von der Leyen was giving a statement in relation to the European Green Deal. Additionally, in the alleged screenshot, the Commission's logo is blurred and low-resolution, and certain elements seen in real press releases are missing, such as the language selection box and a publication date. There's also a typo in the headline: "Kommission" is supposed to be spelt with two Ss, and its official name in German is the Europäische Kommission, not the Europa Kommission. EU initiatives are often the target of misinformation campaigns, as the measures contained within are either misinterpreted or deliberately exaggerated to whip up hysteria. EuroVerify previously debunked a similar false claim that the EU is on its way to banning coffee after labelling caffeine as dangerous for human consumption. A Russian missile strike on an apartment building in the Ukrainian capital Kyiv was a sign that more pressure must be put on Moscow to agree to a ceasefire, Ukrainian President Volodymyr Zelenskyy said on Thursday, as Moscow intensifies attacks in the war. The drone and missile attack on Kyiv early Tuesday, the deadliest assault on the capital this year, killed 28 people across the city and wounded 142 others, Kyiv Military Administration head Tymur Tkachenko said. Zelenskyy, along with the head of the presidential office, Andrii Yermak, and Interior Minister Ihor Klymenko, visited the site of the apartment building in Kyiv's Solomianskyi district on Thursday morning, laying flowers and paying tribute to the 23 people who died there after a direct hit by a missile brought down the structure. "This attack is a reminder to the world that Russia rejects a ceasefire and chooses killing," Zelenskyy wrote on Telegram, and thanked Ukraine's partners who he said are ready to pressure Russia to "feel the real cost of the war." Tuesday's attack on Kyiv was part of a sweeping barrage as Russia once again sought to overwhelm Ukrainian air defences. Russia fired more than 440 drones and 32 missiles in what Zelenskyy called one of the biggest bombardments of the war. As Russia proceeds with a summer offensive on parts of the roughly 1,000-kilometre front line, US-led peace efforts have failed to gain traction. Russian President Vladimir Putin has effectively rejected an offer from US President Donald Trump for an immediate 30-day ceasefire, making it conditional on a halt on Ukraine's mobilisation effort and a freeze on Western arms supplies. Meanwhile, Middle East tensions and US trade tariffs have drawn away world attention from Ukraine's pleas for more diplomatic and economic pressure to be placed on Moscow. In recent weeks, Russia has intensified long-range attacks that have struck urban residential areas. Yet on Wednesday, Putin denied that his military had struck such targets, saying that attacks were "against military industries, not residential quarters." Putin told senior news leaders of international news agencies in St. Petersburg that he was open to talks with Zelenskyy, but repeated his accusation that the Ukrainian leader had lost his legitimacy after his term expired last year. "We are ready for substantive talks on the principles of a settlement," Putin said, noting that a previous round of talks in Istanbul had led to an exchange of prisoners and the bodies of fallen soldiers. A new round of such exchanges took place in Ukraine's Chernihiv region on Thursday, involving the repatriation of Ukrainian prisoners of war who, according to Ukraine's Coordination Headquarters for the Treatment of Prisoners of War (KSHPPV), were suffering from severe health issues caused by injuries and prolonged detention. The exchange was confirmed by Russia's Defence Ministry, which released a video of Russian servicemen at an exchange area in Belarus after being released in the prisoner swap. Commenting on the exchange, Zelenskyy wrote on Telegram: "We are working to get our people back. Thank you to everyone who helps make these exchanges possible. Our goal is to free each and every one." Many of the exchanged Ukrainian POWs had spent over three years in captivity, with a large number captured during the defines of the now Russian-occupied city of Mariupol in 2022, according to the KSHPPV, which added that preparations for another prisoner exchange are ongoing.
Time Business News
19-06-2025
- Business
- Time Business News
Surge in Carbon Credit Platforms Signals Shift Toward Profitable Climate Action
The global Carbon Credit Trading Platform Market, valued at USD 146.2 million in 2024, is projected to surge to USD 724.0 million by 2035, growing at a robust CAGR of 17.6%. This growth is driven by increasing global focus on emissions reduction, rising corporate sustainability efforts, and a widespread shift toward achieving net-zero emissions targets. In a comprehensive analysis led by Shweta R., Business Development Specialist at Prophecy Market Insights, the evolving landscape of carbon trading platforms is explored in depth, highlighting market dynamics, opportunities, and competitive strategies. Carbon credit trading platforms enable organizations to offset their greenhouse gas emissions by purchasing carbon credits tied to verified environmental projects. These platforms are gaining momentum as governments implement stricter climate regulations and businesses prioritize environmental accountability. The market is segmented by type (voluntary and regulated markets), system type (cap-and-trade, baseline-and-credit), end-use industries (industrial, utilities, energy, petrochemical, aviation, and others), and by region. Several key factors are accelerating market growth: 1. Government and Intergovernmental Policies: Programs like the EU Emissions Trading System (EU ETS) and California's Cap-and-Trade initiative are compelling businesses to participate in carbon trading, expanding platform adoption. 2. Corporate Net-Zero Commitments: A growing number of multinational companies are setting voluntary net-zero goals, fueling demand for high-quality carbon credits and reliable platforms for tracking and compliance. Despite its potential, the market faces several challenges: · Lack of Standardization: Inconsistencies in carbon credit quality, verification methods, and pricing across markets create uncertainty. · Limited Awareness: Especially in developing regions, understanding of carbon trading remains low, and supporting infrastructure is still emerging. · Growth in Emerging Economies: Asia-Pacific and Latin America are seeing increased government support for carbon pricing. As policy frameworks and infrastructure develop, these regions will become key growth areas. · Decentralized Markets: Blockchain-based platforms are lowering entry barriers and improving transparency, creating opportunities for small-scale traders and new market entrants. The market includes a diverse mix of global exchanges, environmental consultancies, and tech-driven startups. Leading players include: · Nasdaq, Inc. · CME Group Inc. · ACX (AirCarbon Exchange) · XPANSIV · ClimeCo LLC · VERRA · South Pole · Rubicon Carbon Services · European Energy Exchange AG · Carbonplace · ClimateTrade · SCB Group · Cloverly · Envex · ecoact These companies are leveraging technologies such as AI for credit assessment, blockchain for traceability, and digital platforms to streamline trading processes. · North America leads the market, driven by strong regulatory support, corporate leadership in sustainability, and advanced digital infrastructure. · Europe is a close second, supported by comprehensive climate policies and the longstanding EU ETS framework. · Asia-Pacific is the fastest-growing region, propelled by industrial expansion and evolving environmental regulations in countries like China, India, and Japan. · Latin America and MEA are emerging markets, gaining traction with increased interest in climate finance and international carbon offset projects. To maximize growth potential, stakeholders should: · Invest in platform transparency through blockchain and third-party verification. · Engage with regulators to support consistent standards. · Promote education and awareness in underserved markets. As global efforts to combat climate change intensify, carbon credit trading platforms will become essential tools in achieving sustainability goals. With rapid digital transformation and regulatory alignment underway, this sector presents a high-growth opportunity for innovators, investors, and policymakers alike. TIME BUSINESS NEWS
Business Recorder
29-05-2025
- Business
- Business Recorder
CBAM, carbon trap, and impact of irrational gas policies
The EU's Carbon Border Adjustment Mechanism (CBAM) is now a pressing challenge for exporters worldwide. By pricing the carbon content of imports, CBAM ensures companies outside the EU face the same climate costs as European manufacturers under the EU Emissions Trading System (ETS). It is a key part of the EU's goal to be carbon neutral by 2050, preventing 'carbon leakage' ensuring that all carbon emissions - regardless of origin - are equally penalized. In its first phase (2023–2025), the CBAM targets high-carbon sectors such as iron, steel, cement, aluminum, and fertilizers. However, from 2030 onwards, textiles are expected to be included, posing serious implications for textile manufacturing countries. While textiles are not as energy-intensive as the sectors currently covered under CBAM, the policy could still undermine Pakistan's export competitiveness, given the dependency on textile export revenue. With the EU as Pakistan's largest export market and textiles as its major export, future market access will increasingly depend on the carbon footprint of Pakistani goods. Given the price-sensitivity and highly elastic nature of textiles, even marginal cost increases from carbon tariffs could lead to a noticeable drop in demand. For Pakistan, the risk of losing competitiveness is especially urgent due to three interrelated structural challenges in its industrial sector. First, industrial emissions in Pakistan have steadily risen over the past five decades, driven by a growing reliance on coal. This shift could make the country's manufacturing base increasingly carbon-intensive and less competitive in a climate-conscious global market. Second, Pakistan is a net importer of carbon emissions - an often overlooked aspect of its climate profile. The carbon embedded in imported raw materials and intermediate goods adds to the emissions footprint of its export value chains, inflating the overall carbon intensity of its final products. Third, recent energy reforms - such as the gas levy and the proposed CPP levy legislation under IMF conditionalities - appear designed to push industries away from cleaner, gas-based self-generation toward the more carbon-heavy national grid, risking an increase in emissions per unit of output. Together, these trends not only raise Pakistan's exposure to CBAM-related costs but also risk non-compliance with international climate obligations under the UNFCCC, the Paris Agreement, and Sustainable Development Goals (particularly SDG 7 on clean energy and SDG 13 on climate action). In an era where climate standards are becoming a precondition for access to global markets, Pakistan's energy trajectory - marked by rising emissions, imported carbon, and coal reliance - could undermine its export competitiveness and expose it to carbon and trade penalties if left unaddressed. Coal reliance and accelerating carbon emissions in Pakistan: Pakistan's emissions profile underscores the urgent challenge ahead. Coal power, which accounts for 40% of the country's energy mix, is a significant contributor to rising emissions. Despite its environmental costs, Pakistan remains heavily reliant on coal imports due to its low cost and CPEC-linked investments that have deepened this dependence. However, this reliance clashes with the global shift toward carbon accountability. Over the past five decades, carbon emissions from industrial processes in Pakistan have increased at an average annual rate of 5.3%, signaling not only sustained but accelerating carbon intensity in domestic production (see figure 1). Pakistan as a net importer of carbon: Importantly, Pakistan's carbon challenge extends beyond domestic emissions. As a net carbon importer, much of the emissions embedded in its exports come from imported raw materials and machinery, particularly from high-emission economies like China (figure 2). This outsourced carbon, combined with rising local emissions, could make Pakistan's supply chains carbon intensive - a situation that should be avoided at all costs. Since CBAM taxes emissions across the production process, Pakistan's status as a net carbon importer heightens the vulnerability of its exports. In contrast, regional competitors like Vietnam, China, and India are net carbon exporters (figure 3), shifting their emissions abroad. For instance, Zhang and Chen (2022) find that over 6% of China's exports contain carbon transferred to other Belt & Road Initiative countries, most of which are net carbon importers. Pakistan's growing reliance on Chinese inputs raises the embedded emissions in its textile exports - thereby potentially eroding Pakistan's price competitiveness in major markets. Policy paralysis: Recent IMF-backed energy reforms further compound this challenge. At the center is the CPP levy, which taxes gas supplied to industrial captive power plants (CPPs) and is set to rise incrementally to 20% by August 2026, over and above grid parity. Intended to shift industrial demand to the national grid, this policy has unintended climate consequences. By making gas costlier, it pushes manufacturers toward cheaper but dirtier fuels - primarily coal - undermining Pakistan's climate targets and increasing emissions per unit of output just as global buyers tighten carbon-related standards. While this levy may force some additional units to shift to the grid, its overall impact remains marginal, as gas/RLNG consumption has already declined by 75% due to prohibitively high OGRA-notified prices. The long-term costs are steeper: elevated emissions, rising industrial energy costs, and greater exposure to carbon border taxes. With more trading partners adopting carbon accountability frameworks, Pakistan stands to lose billions in export revenues unless it aligns its industrial energy policy with global climate goals. While the IMF has recently proposed a domestic carbon levy for Pakistan, the detailed framework is yet to be developed. Potential violation of international conventions: The implications extend beyond trade and competitiveness. Increased coal use driven by distorted energy pricing risks violating Pakistan's international commitments. As a signatory to the United Nations Framework Convention on Climate Change (UNFCCC), and the Paris Agreement, Pakistan is obligated to reduce emissions by 20% by 2030 and transparently report its progress. Increased reliance on coal will spike carbon emissions, drawing international scrutiny and weakening Pakistan's credibility in climate negotiations. It also risks non-compliance with the EU's GSP+ scheme, where upcoming monitoring missions - such as the one expected in June - assess adherence to environmental commitments. More broadly, continued coal dependency clashes with the global shift toward Environmental, Social, and Governance (ESG) standards under WTO frameworks, increasing the risk of non-tariff barriers and reduced market access. It also undermines Pakistan's progress toward Sustainable Development Goals—particularly SDG 7 (Affordable and Clean Energy) and SDG 13 (Climate Action) - and threatens the country's broader 2030 development agenda. CHPs for industrial decarbonization: To avoid the rising costs of carbon non-compliance and trade penalties, Pakistan must urgently reorient its industrial energy strategy. The path forward lies in smartly integrating renewable energy with gas-based Combined Heat and Power (CHP) systems. CHP offers a low-carbon, flexible solution capable of stabilizing the intermittency of renewables like solar, while leveraging existing gas infrastructure. Additionally, CHP engines can be integrated with solar PV and battery energy storage systems (BESS), creating a practical and scalable route to decarbonize industrial energy use while reducing dependence on imported coal. These systems also extract maximum economic value from gas molecules by simultaneously generating electricity and useful heat. In this context, gas and RLNG emerge as essential bridge fuels - classified as cleaner technologies - that can complement renewables and enable the transition to a low-carbon industrial base. Aligning with this strategy not only supports compliance with CBAM but also helps uphold Pakistan's international climate commitments by lowering industrial emissions. When reforms backfire: However, while the need for decarbonization is clear, current policy measures are pulling in the opposite direction. The growing disconnect between Pakistan's energy reforms and its climate obligations must be urgently addressed to preserve the country's industrial future. The objective of the IMF-backed policy - aimed at maximizing grid usage to lower tariffs by increasing consumption and spreading fixed costs over a broader base - has failed to materialize. Instead, frequent outages and rising costs have pushed consumers toward solar and industries toward alternative fuels like RFO, coal, and biomass. What persists is an unreliable and unsustainable national grid, burdened with massive stranded costs. If these issues are not urgently resolved, they could lead to a permanent loss of industrial competitiveness and severe environmental consequences. Meanwhile, the combined circular debt of the gas and power sectors has already exceeded Rs 5 trillion (as of March 2025) - a figure that will only increase if reliance on the fragile grid continues, expensive RLNG is diverted to the household sector, and domestic oil and gas fields are shut down. Too often, policies are crafted in isolation, overlooking their long-term consequences on industrial vitality and export growth. Yet, in a landscape where fiscal reforms are essential, sacrificing sustainable revenue streams like exports is a risk Pakistan can no longer afford. Therefore, an open cost-benefit analysis is urgently needed for all policies that currently overlook social, environmental, and economic costs to end this policy disconnect before the consequences become irreversible. Copyright Business Recorder, 2025
