European Union Releases Greenhouse Gas Emissions Plan

On July 14, the European Union (EU) released a climate change plan that would mandate that all industries cut their carbon emissions by at least 55 percent by 2030 from 1990 levels, ban new gas-powered cars by 2035, and require the aviation sector to pollute less and pay more.

The plan, which faces opposition, would also impose levies on certain imports from countries with less aggressive environmental regulations, including the United States, China, and Russia.

The proposal includes an alteration to the EU’s carbon market, the mechanism by which major industrial carbon producers such as the steel industry pay for emissions. It would also create a border-adjustment tax on non-European goods that would offset the disadvantage to domestically-produced goods subject to the regulations.

Additionally, the plan would make at least 38.5 percent of all energy renewable by the end of the decade, establish a carbon market for buildings and road transportation, and phase out internal-combustion vehicles by 2035.

The measure must first pass the European Parliament, where it is likely to be the subject of sharp debate and, eventually, amended. Read the full plan here.

Also last week: Chinese officials said they will launch a national emissions-trading program, involving 2,225 power sector players that the International Energy Agency says currently make up one-seventh of global carbon emissions. Read more here.