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Investment-enabling environment key to making Europe ‘Fit for 55’
The European Commission has today released its ‘Fit for 55’ climate package as part of the European Green Deal. The package aims at bringing all existing climate and energy-related initiatives in line with the EU’s new 2030 55% greenhouse gas emission reductions targets. The American Chamber of Commerce to the EU (AmCham EU) applauds the ambitions laid out in the new package, while emphasising the need for an investment-enabling environment that will facilitate the uptake of technological solutions required for a successful and timely green transition.
Carbon border adjustment mechanism: mitigating carbon leakage across borders
As part of the new legislative package, the Commission has adopted a proposal for a carbon border adjustment mechanism. AmCham EU supports the measure’s objectives of mitigating the risk of cross-border carbon leakage. We are pleased to note the proposal’s focus on compatibility with WTO rules. Looking ahead, it will be critical for the EU to take an inclusive and global approach and build consensus with key trading partners. AmCham EU looks forward to working constructively with policymakers to ensure that the proposal is compatible with global business models and safeguards the EU’s competitiveness.
Renewable, efficient and integrated energy markets
Also part of the package are the Renewable Energy Directive and the Energy Efficiency Directive. AmCham EU urges greater synergies between the legislative initiatives, in order to ensure coherence between all energy and climate-related rules. We see market signals as the primary tool to identify investment needs in new flexible power generation capacity. As companies who are active in the production and purchase of renewable energy in Europe, as well as the development of technological solutions to integrate renewable energy into Europe’s energy grids, we support a renewable energy policy framework that fosters investment in infrastructure to better integrate renewables.
Cleaner transport to successfully reduce emissions in Europe
Road transport will play a significant role in achieving both the 2030 targets and the EU’s net zero ambition. The Alternative Fuels Directive and CO2 emission standards for cars and vans set the EU on a constructive path towards decarbonising the sector but more work remains to be done. Reaching these goals will require a comprehensive approach that is smart, cost-efficient, technology neutral and stimulates higher renewable content in fuels. A similar approach can be applied in the sky. The Commission’s new sustainable aviation fuels proposal is an opportunity for greater uptake of sustainable fuels on the market. AmCham EU welcomes the increased levels of investment in sustainable aviation fuels, while calling for more regulatory and financial incentives for research, development and deployment of sustainable aviation fuels. Our member companies are at the forefront of developing sustainable fuels in the aviation sector, but regulators must provide the requisite incentives that will stimulate both supply and demand.
#EUGreenWay: From decarbonising the energy sector, to building sustainable food systems; from innovating sustainable mobility solutions, to making the economy circular: American companies in Europe are innovating today to achieve a more sustainable tomorrow. Check out the steps our members are taking towards Europe’s greener future on our Invested in Europe platform and on social media: #EUGreenWay.