Ihe European Parliament definitively adopted, on Tuesday 18 April, a legislative text which will still be remembered in 2050. At least we must hope so, since it is the central part of the Green Deal, which aims for carbon neutrality of the continent on this horizon. It aims to reduce carbon emissions in the European Union (EU) by 57% from 1990 levels by 2030.
The centerpiece of this system, unique in the world, is a considerable reinforcement of the carbon market, a great European innovation. We give an increasing price to the pollution we want to avoid, in this case greenhouse gas emissions.
For the moment, only the producers of electricity, steel, aluminum or cement, i.e. the most energy-intensive heavy industries, are subject to a complex system of emission quotas which caps an amount of CO2 to be issued each year and taxes anything over that.
This ceiling is lowered regularly, and the free quotas at the beginning will gradually disappear. But, to win the battle for the climate, it was necessary to embark well beyond, and in particular the two crucial sectors of housing and transport. After a Homeric struggle, the 27 member countries of the EU have agreed to gradually integrate road, air and maritime transport, as well as the heating of buildings.
Clear priority
Finally, the last piece of the system, steel, aluminum, cement, electricity or fertilizers entering the Old Continent will pay their share of this effort, in the form of a carbon tax at the borders of Europe. , so as not to penalize the competitiveness of European producers already subject to this tax.
Economists are happy. The majority of them recall the strength of the price signal in the evolution of behavior. We experienced it hard, but effectively, this winter with rising energy prices. Politicians emphasize that the social acceptance of such increases is not guaranteed and that the ghost of “yellow vests” sleeps only with one eye.
Finally, manufacturers are warning about the risks of massive relocations. Because, if imported raw materials will be taxed, processed products will not be, which will encourage them to be produced elsewhere. And especially in very welcoming countries at the moment, such as the United States.
Brussels is counting on its plans, social aid and green industry subsidies to offset this new burden. The overall architecture of this entire system is therefore as complex as it is ambitious. But at least it sets a clear priority. And underlines, implicitly, the many pitfalls that stand in the way of climate transition.