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EU proposes a 90% cut in greenhouse gases by 2040
EU proposes a 90% cut in greenhouse gases by 2040

RTÉ News​

time2 days ago

  • Business
  • RTÉ News​

EU proposes a 90% cut in greenhouse gases by 2040

The European Commission has proposed a target of a 90% reduction in net greenhouse gases compared to 1990 levels by 2040. The target builds on the 2030 goals of a 55% reduction in carbon emissions, which the commission said the EU is "well on track" to meet. However, environmental organisations have criticised the new target because it assumes greater progress in carbon capture and storage, and introduces new flexibilities which would mean up to 3% of the target would be met by paying countries outside the EU - through so-called international carbon credits - to reduce their greenhouse gas emissions. The European Commission said the new goal, and the methodology involved, will provide certainty for investors, boost the EU's competitiveness and increase its energy security. Under the EU Climate Law, the commission is required to update the carbon emissions target from 2030 to 2040 in order to meet the overall goal of net emissions neutrality by 2050. However, the existing drive towards net zero has been eroded in recent years by a political backlash, particularly where right-wing and far right parties have gained ground. European Commission President Ursula von der Leyen has been accused of watering down key pieces of legislation, such as the European Green Deal. Last week, the commission withdrew legislation banning so-called greenwashing - the practice of companies asserting spurious or unfounded environmental credentials. However, it insists the new target reflects growing public alarm at the effects of global warming. The 2025 Climate Eurobarometer, released on Monday, showed that 85% of EU citizens consider climate change a serious problem, with 81% supporting the net neutrality target for 2050. In a statement, Ms von der Leyen said: "As European citizens increasingly feel the impact of climate change, they expect Europe to act. "Industry and investors look to us to set a predictable direction of travel. "Today we show that we stand firmly by our commitment to decarbonise the European economy by 2050." The EU chief added the "goal is clear" and the "journey is pragmatic and realistic". Under the proposal, there will be a "limited role" for "high quality" international carbon credits in the second half of the 2030s in order to meet the 90% reduction target by the end of the decade. The amendment will also allow for the permanent removal of carbon within the EU's Emissions Trading System to be taken into account. The commission said these flexibilities will be done in "a cost-effective way and ensure a just and socially fair transition for all". The new target, it said, goes hand in hand with the Clean Industrial Deal - which updates the Green Deal - as well as the so-called Competitive Compass and the Affordable Energy Action Plan. Greenpeace has criticised the plan on the basis that it falls short of the European Scientific Advisory Board's own recommendation of a target reduction of 90% - 95%. It also said the decarbonisation involved in the plan should be measured only on the basis of internal EU efforts, rather than relying on carbon reduction done by countries outside the EU. The organisation's EU climate campaigner said the bloc's 2040 climate targets "should drive a shift away from fossil fuels, starting with an EU ban on new fossil fuel projects, towards renewables and energy saving to cut people's energy bills, make their homes easier to heat and cool, and clean the air they breathe". But Thomas Gelin said that instead the commission "relies on dodgy accounting and offshore carbon laundering to pretend to hit the lower bound of what its climate scientists advise". "The EU, as a historical polluter, has the responsibility to cut its own pollution and ironically will make the necessary changes harder for European households and businesses by delaying even further," he added. Ireland's 2030 emissions reduction target is 42%. According to a recent projection by the Environmental Protection Agency (EPA), however, the State will only manage to cut emissions relative to 1990 levels by 23% - even if every climate policy planned by the Government is implemented on time. That is actually down from a 29% prediction last year, meaning Ireland's progress towards the legally binding EU target is going backwards. The EPA said the deterioration is due to significantly slower progress on many fronts, including onshore wind, offshore wind, electric vehicles, district heating and the use of biomethane.

Green shipping, digital tools are key themes for Motion Ventures' new US$100 million fund
Green shipping, digital tools are key themes for Motion Ventures' new US$100 million fund

Business Times

time25-06-2025

  • Business
  • Business Times

Green shipping, digital tools are key themes for Motion Ventures' new US$100 million fund

[SINGAPORE] From decarbonising ships to making seafarers more efficient – Motion Ventures wants to bet on technologies that 'will define the next generation' of maritime innovation, said its founder and general partner Shaun Hon. To power its support of these technologies, the firm unveiled a fund in March that aims to raise US$100 million. It has attracted more than half that target so far. This follows the success of its inaugural S$30 million fund launched four years ago. Hon said the maritime industry has been slow to adopt new technologies, but that innovation is gaining steam. The International Maritime Organization's target for global shipping to hit net-zero emissions by or around 2050 has spurred investments into electric vessels, alternative fuel and digital tools that improve efficiency on board ships. The ongoing tech funding winter, which began when venture capitalists slashed investments with the rise of interest rates from 2022, has not hit maritime startups as hard as it has with consumer startups. Hon said: 'If you think about maritime venture investments, they've only gone up, though it wasn't like there were a lot of investors before.' He added that startup valuations in this space are driven by rational business fundamentals. A NEWSLETTER FOR YOU Friday, 12.30 pm ESG Insights An exclusive weekly report on the latest environmental, social and governance issues. Sign Up Sign Up Motion Ventures has thus far backed four startups with its second fund. One of them is Fernride, from Germany, which provides autonomous and electric trucking solutions for the maritime industry. The second is OceanScore, also based in Germany, which offers solutions for compliance with the European Union's Emissions Trading System and fuel regulations. The remaining two startups are maritime insurance platform Ceto, and Moddule, which is building a 'command centre' solution for logistics. Hon identified maritime decarbonisation as a big investment theme, fuelled by climate regulations. Solutions that help vessels cut down on fuel consumption carry the dual benefits of slashing both emissions and costs. This means 'there's no trade-off' for shipping companies to adopt such solutions, he noted. Digitalisation of the shipping industry is another key focus. Hon noted that more vessels now have Internet access, thanks to satellite solutions such as Starlink. With vessels becoming like floating offices, shipowners and ship managers can 'unlock a lot of business value' by shifting away from pen-and-paper processes. Solid fundamentals Hon, previously an investment principal at Singapore venture capital firm (VC) Trive, founded Motion Ventures in 2021. That year, many VCs were still focused on hot segments such as fintech and consumer apps. But Hon, a mechanical engineer by training, grew interested in maritime tech after conversations with several industry players. He learned that the sector had promising startups that were 'under-funded, but had very solid business fundamentals'. 'These businesses were break-even by default, or 'alive', in startup terms. But no one was investing in these,' he said. With its inaugural fund, Motion Ventures backed 27 maritime startups across the world – such as Singapore electric vessel builder Pyxis, Indian container reuse platform MatchLog, and Fishtail, a US startup providing financing for freight forwarders. The geographic diversity is in line with how the shipping industry itself is 'extremely global', said Hon, adding that his team looks for the 'best technology that can move the industry forward'. He sees Europe being a hub for emissions-reduction solutions, while the US and India have produced freight and trucking innovations, due to their need to move goods around huge landmasses. A tailwind for maritime startups is the healthy level of acquisition activity happening in the maritime space, which means investors can realise their investments beyond the public listing route. For instance, DeepSea Technologies – a maritime AI startup that Motion Ventures backed through its first fund – was acquired by Japanese engineering company Nabtesco Group in 2023. Government support is a further boost for the maritime tech ecosystem. Singapore has, for example, formed 'green and digital shipping corridors' with international partners to promote the use of new technologies, Hon noted. Bridging startups and corporate players With its broad portfolio, Motion Ventures has attracted maritime corporations to invest in its funds for exposure to startups. Its first fund has 17 maritime companies as investors. They include maritime classification society Lloyd's Register, ship-management company Wilhelmsen, and the corporate venture arms of shipping companies MOL and IMC Industrial Group. Hon said: 'Once we had a few investors come on board, over time, the network effect just started playing out.' The majority of the investors in the first fund also stepped up to back the second one. Motion Ventures has not disclosed specifics. The VC hopes to not just be a financial investor, but also a 'bridge' between its portfolio companies and its base of corporate investors, said Hon. He estimates that about two-thirds of its portfolio companies have developed working relationships with the VC's investors. For instance, France-based Everimpact, which Motion Ventures backed with its first fund, collaborated with Wilhelmson and MOL to test carbon dioxide sensors on board MOL vessels. 'This is a collaboration that would have been extremely difficult to do if we were all not at the same table,' said Hon. Back in 2021, maritime tech was a blue-ocean opportunity, but the deal space is now getting more crowded. Hon sees more generalist VCs showing interest in investing in this sector. 'Non-maritime VCs could invest, literally, in any space in the world, but they're starting to pay attention to maritime,' he said. 'I think those are very positive and encouraging proof points that what we're doing is in the right direction.'

Flexibilities In 2040 Target Risk Breaking The EU Carbon Market
Flexibilities In 2040 Target Risk Breaking The EU Carbon Market

Scoop

time19-06-2025

  • Business
  • Scoop

Flexibilities In 2040 Target Risk Breaking The EU Carbon Market

The EU's Emissions Trading System is essential to meeting the European Union's 2040 climate target. Watering the EU ETS down with international carbon credits or carbon removals will prove fatal, concludes a study commissioned by Carbon Market Watch. Under pressure from industry and pro-business stakeholders, the European Commission has been toying with ways to water down the EU's long-delayed 2040 climate target, which is due for release in July, without officially diluting it. Among the options being considered is to allow the use of international carbon credits generated under Article 6 of the Paris Agreement for use towards the 2040 climate target or the European climate goal in the nationally determined contribution (NDC). These Article 6 credits, just like carbon removal credits, could be considered for use in the EU ETS. However, a new study commissioned by Carbon Market Watch through the LIFE Effect project and conducted by the Oeko Institute, which considers the contribution of the EU ETS to the 2040 climate target, reveals that not only are such adjustments unnecessary, they would likely be counterproductive. 'The EU ETS has only recently reached a meaningful carbon price that, while not perfect, made the carbon market a more powerful climate tool. This latest research confirms that the ETS is well-equipped for its mission of reducing emissions for at least another decade,' says Sam Van den plas, CMW's policy director. 'Boosting ETS market liquidity can't come at the cost of the climate. Reforms must build trust in the ETS and keep the EU on track for its 2040 and 2050 climate goals.' Quick fix or in a fix? The Oeko Institute study models various climate scenarios and strategies for calibrating the Emissions Trading System to the new reality of the 2040 climate target, including enabling polluters to use international credits or carbon removals on the EU ETS. These risky options could undermine the environmental effectiveness of the ETS, the analysis concludes. The current configuration provides a cost-effective means for the European economy to decarbonise by both putting a price on emissions and channeling that revenue into climate action and investment in Europe. Meddling with the scheme runs the risk of slowing or scuppering efforts to reduce the carbon footprint of the sectors covered by the ETS s and reducing investment within the EU through the purchase of credits abroad. For international credits, the EU has been here before. In the early years of the EU ETS, polluters were allowed to use carbon credits generated by the Kyoto Protocol's Clean Development Mechanism (CDM) to offset part of their emissions. This practice led to the depression of carbon prices and delayed the decarbonisation of the bloc's heavy industry. The fact that some CDM credits will migrate to the new Article 6 carbon market raises the spectre of dilution and delay once again. Moreover, using international credits enables the EU to renege on part of its obligation, enshrined in the European Climate Law, to reduce domestically its carbon footprint, removing the responsibility of large European polluters to decarbonise instead of offsetting. The study also finds that it would be misguided to introduce carbon removals into the EU ETS, as the price on the ETS for industrial installations will not be high enough to incentivise the development of the high quality, permanent carbon removals needed to reach net zero by 2050. As recommended by the European Scientific Advisory Board on Climate Change (ESABCC) and as long advocated by Carbon Market Watch and its allies, setting separate targets for gross emissions reductions, permanent removals and land-based removals within the EU's 2040 climate target is the first step to ensuring emissions reductions occur alongside the development of high-quality carbon removals. Any integration of carbon removals in the ETS poses the risk that efforts to slash emissions today will be scaled back in favour of carbon removals tomorrow. This would, in turn, increase pressure to allow cheap and volatile natural sequestration, with its doubtful climate impact, in the future. When it comes to the EU ETS for road transport and buildings (ETS2), the report concludes that uncertainties surrounding how the new market will function and how fast emissions will fall from these two sectors means that ETS2 should be left to function and observed for several years before any changes are considered to avoid unnecessarily weakening the system. The existing safeguards in place to prevent high ETS2 prices must be accompanied by strong social climate plans under the Social Climate Fund and the dedication of all ETS2 revenue to socially targeted investments and income support to help people to decarbonise. Stability, not liquidity Two mechanisms govern the liquidity of the EU ETS: the Linear Reduction Factor (LRF), which sets the annual rate at which the cap or maximum emissions are reduced, while the Market Stability Reserve (MSR) is designed to temporarily hold excess pollution permits which are cancelled if oversupply continues or are injected back into the market if the carbon price spins out of control. The study concludes that both mechanisms are performing their roles satisfactorily and do not need any adjustments until at least 2035. Any premature watering down of either risks depressing the carbon prices and stalling decarbonisation. Don't break it Based on the findings of the study, CMW has produced an accompanying briefing which makes a number of recommendations. These can be summed up in a few words: don't break the EU ETS. This involves excluding international carbon offsets and carbon removals from the scheme. It also involves not tampering with the MSR or LRF until at least 2035. About LIFE Effect Led by Carbon Market Watch, LIFE Effect puts civil society across the EU in the driver's seat to help national policymakers navigate the design of socially fair and environmentally effective carbon pricing and revenue use for buildings and road transport

Wrexham MP welcomes UK Government's trade deal with the EU
Wrexham MP welcomes UK Government's trade deal with the EU

Leader Live

time27-05-2025

  • Business
  • Leader Live

Wrexham MP welcomes UK Government's trade deal with the EU

MP for Wrexham I welcome the UK Government's trade deal with the EU as announced last week. The EU is our biggest trading partner, and this deal helps to right the many wrongs of the previous government. When Labour was elected, we said that we would reduce barriers to trade and economic growth, and we meant it. The UK Government is respecting the decision made by the British people in 2016 and whilst there is no return to the EU, this deal make things easier for businesses as well as people in day-to-day life. Before I was elected as MP for Wrexham, and since, different businesses both large and small, locally and regionally, have told me time and time again how the Conservative Government's Brexit deal had made their daily experience as a business more challenging: more expensive, more difficult, more barriers, higher costs. This had led to some being forced to close due to the higher costs and increased bureaucracy. We have all seen the impact on our own pockets with food prices rising and hospitality businesses struggling as well as those who previously exported to the EU. The deal includes: · Making it easier for food and drink to be imported and exported by reducing the red tape. This agreement will have no time limit, giving vital certainty to businesses. · Some routine checks on animal and plant products will be removed completely. · Closer co-operation on emissions through linking our respective Emissions Trading System. · British steel exports are protected from new EU rules and restrictive tariffs, through a bespoke arrangement for the UK. · British holidaymakers will be able to use more eGates in Europe. · Introduction of 'pet passports' for UK cats and dogs. · The EU-UK security and defence partnership means that British firms will be treated as European, so can benefit from defence procurement. I welcome the agreement to explore access to Erasmus + as well as a Youth Mobility scheme; it is important that young people have access to opportunities that previous generations enjoyed and were denied to them for too long. Co-operation on defence is also part of the deal. The EU and the UK share the same challenging security environment, and both have vital interests in the peace, security and stability of Europe and beyond. As ever, if you have any queries or concerns or you have an issue that you would like me to try and assist you with, please do not hesitate to contact me on 01978 788854 or

Wrexham MP Andrew Ranger welcomes UK Government's trade deal with the EU
Wrexham MP Andrew Ranger welcomes UK Government's trade deal with the EU

Leader Live

time27-05-2025

  • Business
  • Leader Live

Wrexham MP Andrew Ranger welcomes UK Government's trade deal with the EU

MP for Wrexham I welcome the UK Government's trade deal with the EU as announced last week. The EU is our biggest trading partner, and this deal helps to right the many wrongs of the previous government. When Labour was elected, we said that we would reduce barriers to trade and economic growth, and we meant it. The UK Government is respecting the decision made by the British people in 2016 and whilst there is no return to the EU, this deal make things easier for businesses as well as people in day-to-day life. Before I was elected as MP for Wrexham, and since, different businesses both large and small, locally and regionally, have told me time and time again how the Conservative Government's Brexit deal had made their daily experience as a business more challenging: more expensive, more difficult, more barriers, higher costs. This had led to some being forced to close due to the higher costs and increased bureaucracy. We have all seen the impact on our own pockets with food prices rising and hospitality businesses struggling as well as those who previously exported to the EU. The deal includes: · Making it easier for food and drink to be imported and exported by reducing the red tape. This agreement will have no time limit, giving vital certainty to businesses. · Some routine checks on animal and plant products will be removed completely. · Closer co-operation on emissions through linking our respective Emissions Trading System. · British steel exports are protected from new EU rules and restrictive tariffs, through a bespoke arrangement for the UK. · British holidaymakers will be able to use more eGates in Europe. · Introduction of 'pet passports' for UK cats and dogs. · The EU-UK security and defence partnership means that British firms will be treated as European, so can benefit from defence procurement. I welcome the agreement to explore access to Erasmus + as well as a Youth Mobility scheme; it is important that young people have access to opportunities that previous generations enjoyed and were denied to them for too long. Co-operation on defence is also part of the deal. The EU and the UK share the same challenging security environment, and both have vital interests in the peace, security and stability of Europe and beyond. As ever, if you have any queries or concerns or you have an issue that you would like me to try and assist you with, please do not hesitate to contact me on 01978 788854 or

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