The European Council and the European Parliament reached a provisional political agreement on legislative proposals of the ‘Fit for 55’ package that will allow the EU to reduce its net greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels and to achieve climate neutrality in 2050 while making sure the most vulnerable citizens and micro-enterprises are effectively supported in the climate transition.
The Council and Parliament agreed to increase the overall ambition of emissions reductions by 2030 in the sectors covered by the EU ETS to 62%.
The market stability reserve (MSR) will be strengthened by prolonging beyond 2023 the increased annual intake rate of allowances (24%) and setting a threshold of 400 million allowances.
The Council and Parliament agreed that t a Social Climate Fund would be part of the EU budget and fed by externally assigned revenues up to a maximum amount of € 65 billion. This budgetary architecture allows the fund to benefit from a series of guarantees linked to the European budget, without reopening the EU’s multiannual financial framework.
