An extraordinary meeting of the European Union (EU) Environment Council concluded in Brussels on 5 November. After talks lasting almost twenty-four hours, EU member states agreed on amendments to the European Climate Law (ECL) concerning the climate target for 2040. Latvia's interests have been taken into account. Trilogues* with the European Parliament will begin shortly in order to reach a final agreement.
"Latvia has been actively involved in the negotiations in various formats. We have explained Latvia's position at length to the European Commission and have actively sought like-minded partners among other member states. We are pleased to have succeeded in getting elements that matter to Latvia included in the text of the proposed ECL amendments. But this is only the halfway mark – negotiations on the final wording will now take place in trilogues between the Council, the European Parliament and the European Commission. It will be essential for us to safeguard what we have achieved. We hope for the continued support of Members of the European Parliament," stresses Minister for Climate and Energy Kaspars Melnis.
Agreement was also reached to postpone the EU Emissions Trading System (ETS2) as it applies to transport energy by one year, that is, until 2028. As with the rest of the text of the regulation, this still has to be agreed with the European Parliament. If the European Parliament supports it, the so-called ETS2 fossil fuel tax would come into force in Europe in 2028 rather than in 2027 as originally planned.
Outside the amendments to the regulation, however, the European Commission has undertaken in a separate statement to review the underlying principles of ETS2 implementation in order to ensure a more gradual and even rollout of the system across Europe. The planned legislative proposals are intended to address member states' concerns about high and volatile emission allowance prices, the orderly launch of the market, and trends in emission allowance prices.
At the Council meeting Latvia stressed that the 2040 climate target must be realistically achievable. In light of scientific advice, most countries and the European Commission were not prepared to move away from the 90% target level. Latvia secured a series of conditions that could make the implementation of this target, and its distribution between member states, as favourable as possible for Latvia.
First, the text of the regulation includes a clarification that sustainable bioenergy is among the means to be used in meeting the climate target, with particular emphasis on the role of renewable fuels in transport. This means that sustainable biomass could be retained as a renewable energy resource in energy production after 2030 as well. This, however, will still have to be decided by the European Parliament in the final vote.
Second, the European Commission has been tasked with assessing progress towards the targets every two years, taking into account both scientific findings and technological progress, as well as the growing challenges and opportunities for the EU's global competitiveness. If the assessment shows that the target set was overly optimistic, the European Commission will have to amend the regulation, including revising the 90% target it contains. At the same time, the targets must be pursued in a way that preserves economic growth, competitiveness and social well-being. In Latvia's view these conditions are particularly important, given both Latvia's economic situation and the current geopolitical situation.
Third, the text of the regulation states that in shaping the delivery of the 2040 target, realistic account will be taken of the capacity of the land sector and the related uncertainties, which depend on natural processes and climate change. In Latvia, for example, a large share of the territory consists of forests, agricultural land and organic soils (peatlands). Their emissions and carbon sequestration depend on natural processes we cannot influence, such as drought, storms and pests. These are significant factors that must be taken into account when assessing delivery of the targets in this sector.
For the vote at the Environment Council, Latvia attached a declaration setting out Latvia's position on the role of bioenergy in the energy sector as part of the renewable energy portfolio. In the declaration we also explain Latvia's view on revising the targets if it is concluded that meeting the target is impossible. We further call for a detailed impact assessment at national level to ensure that emission reduction figures are distributed between member states fairly and in a way that can be delivered.
The Environment Council also reached agreement on setting the EU's nationally determined contribution (NDC) for 2035, as required in the context of the Paris Agreement. The NDC is due to be submitted before the UN Climate Conference (COP30), which will take place from 10 to 21 November in Belém, Brazil.
Under the Paris Agreement, all parties must periodically submit their nationally determined contributions and update them every five years. The NDC reflects each country's efforts to reduce emissions and adapt to the effects of climate change. The EU submits a joint NDC on behalf of all its member states together.
A trilogue is a negotiation between the European Union institutions (the European Commission, the European Parliament and the Council of the European Union) in which a compromise is reached on the final wording of a legislative act after both the European Parliament and the Council have set out their positions on the proposal.