Want to stay up to date on all things COP happening across the year? Look no further than our Timeline to COP27 happening in November 2022 which details all the key events across the coming year related to COP.
The colour code tells you which energy type was used to produce the hydrogen in gas form. Currently 95% of hydrogen is based on fossil fuels (grey hydrogen) still leading to high CO2 emissions. To make hydrogen a sustainable source of energy it must be produced by renewable energy (green hydrogen). However, huge investment in green hydrogen production is necessary to scale-up green hydrogen in the amount needed for the Green Transition.
The Social Climate Fund was set up to cushion the impacts of the extended ETS and direct investment into energy. Direct income support is the preferred method of fund allocation to individuals. There needs to be a systematic way to track annual fund allocation across Member States.
On the 14th and 16th of March various important meetings took place for tackling key topics such as the Alternative Fuels Infrastructure Regulation, the Social Climate Fund and the Renewable Energy Directive (RED II).
The current Russian aggression in Ukraine is significantly affecting EU Energy policies. Hydrogen holds potential for delinking EU gas demands from Russia, although its technology is still at the early stage. There is a need for continuous dialogue between EU policymakers and the energy industry, and to stay in line with the Paris Agreement.
Energy efficiency means being independent from Russia’s oil and gas, focusing on renewable energy sources and innovation at EU level. Renewable energy usage should be reflected in the EU’s ambition by more than 40% by 2030, with a particular focus on hydrogen. Energy efficiency is strongly related to energy waste, in the sense that at EU level there should be a new behavior towards minimizing consumption and waste in general.
Energy taxation should take into account the mix of energy, energy poverty and monitoring, and the difference between the Member State practices. The scheme for energy taxation should be implemented as soon as possible, taking into account the urgency of the climate crisis. The energy taxation should be used as a catalyst for speeding up the use of renewables within each Member State
On March 17th, the Environmental Council met to discuss the extension of the ETS to road transport and buildings and the Social Climate Fund. A majority of countries support extension of the ETS though some still have concerns regarding social impacts. Support for the Social Climate Fund was more limited. The Council shared a progress report on other files and it was announced that a general approach on CBAM was reached.
Democratic Senator Joe Manchin said in an interview for Fox News on 19th of December that he could no longer support the BBBA, taking the White House by surprise. Manchin revived hopes in March by proposing a new approach which would have sufficient funding for climate provisions from the BBBA The clock is ticking for the Democrats with the Midterm elections in November, which could potentially result in Republican control over the US Congress.
The BBBA encourages energy efficiency and renewable energy while reforming fossil fuel leasing.Special attention is paid to vulnerable communities and to encourage domestic productionThe BBBA chooses incentives in the form of tax credits to promote renewable energy production rather than regulations.