The European Commission proposes to cut GHG emissions by 55% in 2030

The European Commission is proposing to raise the 2030 target for greenhouse gas (GHG) emissions reduction from 40% to at least 55% compared to 1990, which would put the European Union on track for meeting its Paris Agreement obligations and for climate neutrality by 2050. In addition, the executive branch of the European Union plans that 30% of the €750bn EU budget for the 2021-2027 period will be raised through green bonds and 37% of the funding will be invested in European Green Deal objectives, including ‘lighthouse' European projects – hydrogen, green building and 1 million electric charging points.

Earlier in September 2020, the Committee on Environment, Public Health and Food Safety of the European Parliament recommended reducing GHG emissions by 60% in 2030 compared to 1990 and approved a plan to make climate neutrality mandatory by 2050 in both EU and member states. A European climate law that would make it a legal requirement for the EU to become climate-neutral by 2050 was proposed in March 2020 by the European Commission. In December 2019, the European Council endorsed the 2050 climate-neutrality objective, which is a central part of the European Green Deal.

In addition, the European Parliament has just voted to allow financing of investments in gas projects under the Just Transition Fund. Funding will be reserved to a very limited number of gas projects, which are considered compatible with the EU’s carbon neutrality target for 2050 and updated climate goals for 2030 and which are located in the 15 EU regions that are highly dependent on coal. In June 2020, the Council of the European Union excluded funding for nuclear or fossil projects from the Just Transition Fund. The European Commission plans to create a €40bn Just Transition Fund to assist EU countries in accelerating the transition towards climate neutrality. It will help coal-reliant countries to decarbonise their power sector.