In November the European Union made some progress by agreeing on climate targets for 2035 and 2040. These are set out in the Paris Agreement and are a necessary guiding principle if Europe is to achieve net zero emissions by 2050. For the first time, Europe agreed on a so-called target range rather than a specific figure for the 2035 emissions reduction target. The European Union submitted it late, missing two deadlines set by the UN. This situation naturally weakened the European Union’s position at COP30. It should be stressed that there is a discernible move to weaken the requirements of Europe’s “green laws”, which creates an unclear picture of the future of climate and energy policy.
Transport and carmaking in Europe – where will the changes lead?
On 10 December the European Commission will table laws and initiatives to support the transport sector, including a revision of the CO₂ emission rules for cars and vans. This law has already met serious opposition from companies in the sector and from member states. German Chancellor Friedrich Merz is calling for the planned ban on producing cars with hybrid engines not to be applied from 2035. The proposals will also include measures to support the manufacture of electric vehicles, among them plans to introduce a battery improvement strategy and a dedicated law to encourage companies to meet environmental requirements for their vehicle fleets. There is information that these initiatives will also be postponed. It should be stressed that German carmakers and related industries are mobilising to have the “green laws” slowed down, because their rapid and ill-considered introduction could in effect wreck not only the car industry in Germany but also have a very negative impact on the entire economy of the “flagship of Europe”...
Europe’s electricity grids need vast sums
On 10 December the European Commission will present the so-called grids package, which aims to modernise and expand Europe’s electricity grids, support rapid electrification and speed up permitting. Europe’s electricity grids need modernisation and digitalisation in order to integrate more renewable energy and to meet the expected growth in electricity demand as households and businesses move away from fossil resources. The data show that 730 billion euros will have to be invested in Europe’s distribution grids by 2040, and 477 billion euros in transmission grids.
Support for Europe’s “clean products”
On 10 December the European Commission plans a follow-up to the *Clean Industrial Deal, in order to strengthen Europe’s competitiveness and cut emissions. The central element in this area is a dedicated Industrial Accelerator Act; its aim is to increase demand for “clean products” made in Europe by introducing sustainability, resilience and “Made in Europe” criteria in public and private procurement. The proposal is said to help speed up permitting for steel production and decarbonisation, and to create a label indicating the carbon intensity of products. The measures are part of efforts to strengthen the competitiveness of European industry in conditions of global competition.
What was topical in November?
Agreement on the 2035 target
European member states approved the 2035 emissions reduction target, which under the Paris Agreement was required before COP30. Having missed two deadlines set by the UN, the European Union submitted a target range of 66.25% to 72.5% only days before COP30. An MEP from the European Parliament’s largest group, the European People’s Party (EPP), and its climate policy representative, Peter Liese, was critical of the Danish presidency and the European Commission for focusing too heavily on the 90% target for 2040 without showing the compromise needed to reach agreement on the 2035 target. Liese blamed France and Poland for holding up decisions. As a result, Europe failed to reach a diplomatic agreement before the COP30 conference.
The 2040 climate target
EU member states and the European Parliament have agreed on their respective positions on the EU’s 2040 emissions reduction target, opening the way to talks on a final agreement that are due to begin on 9 December. Both sides support the Commission’s proposed 90% cut in emissions by 2040, which is in line with the EU Scientific Advisory Board recommendations. However, both sides want to increase the volume of international carbon credits that can count towards meeting the target, to as much as 5 percentage points, and to postpone the introduction of a new carbon price for road transport and buildings, both of which have drawn criticism from NGOs and green business groups.
**ETS2 and the impact of carbon prices
The new carbon price for road transport and buildings (ETS2) will most likely be postponed because of political disputes over Europe’s climate targets. Both the governments of European member states and the European Parliament voted to delay the scheme, which was designed to drive emissions reductions in two sectors that are crucial to meeting climate targets. The transport sector is the largest source of emissions in Europe, and road transport accounts for a significant part of it. The buildings sector, in turn, is the largest consumer of energy. Clean technology industries and environmental organisations are worried that the postponement will reduce the incentive to switch to clean mobility and heating, and will risk cutting the funding available in the Social Climate Fund, a source of funding intended to protect the poorest households and small businesses from the impact of carbon prices.
On corporate sustainability rules
On 13 November the European Parliament decided on reducing the requirements of the European Union’s corporate sustainability laws. Agreement was reached to narrow the scope of both the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD) so that they cover only large companies. Legislators agreed to scrap the mandatory transition plans that companies would have had to draw up in order to align their activities with the Paris Agreement. Talks with European member states on the final version of the law are under way. The most recent meeting on the matter took place on 8 December. The European Ombudsman has criticised the European Commission for failing to observe its own rules on “evidence-based, transparent and inclusive lawmaking”.
COP30 problems over the question of fossil fuels
All the efforts to secure a COP30 roadmap for phasing out the use of fossil resources were unsuccessful at the COP30 climate summit. Europe, with some delay, ultimately backed the idea. The delay was caused by hesitation on the part of Italy and Poland. Overall, Brazil’s COP30 presidency and more than 80 countries supported the measure, but the bloc led by Russia and Saudi Arabia succeeded in having the initiative blocked, and no direct reference to the use of fossil resources was included in the final text. Talks will continue outside the COP, including at a conference planned in Colombia in April 2026. COP30 did produce agreements on tripling adaptation finance by 2035, on creating a new fund to protect rainforests, and on initiatives to help countries implement and deliver on the commitments they have made. A Carbon Brief report has published a list of the countries opposing the fossil resources roadmap drawn up by Brazil as the country holding the COP30 presidency. The report points to inconsistencies and errors. The list includes three European countries – Bulgaria, the Czech Republic and Hungary; despite the European Union’s support for this initiative, these countries nevertheless take a “special approach” to the matter.
Ban on imports of Russian gas
On 3 December European negotiators agreed that all imports of Russian gas into the European Union will end by 1 November 2027 at the latest. Short-term and long-term contracts for supplies of liquefied natural gas will be banned even earlier. Hungary wants to challenge this plan in the Court of Justice of the European Union. Both Hungary and Slovakia are entirely dependent on pipeline gas supplies from Russia, and so they opposed the agreement. The ban on gas imports is part of a broader initiative to reduce dependence on Russian energy imports following the invasion of Ukraine.