Climate policy in Belém, Brussels, and Berlin

While measures to reduce CO2 emissions are being negotiated at the 30th UN Climate Change Conference in Belém until November 21, the EU is backtracking on its ambitious climate targets. The European Parliament has followed the Commission’s proposal to amend the EU Climate Law and set a new EU climate target for 2040, which envisages a 90 percent reduction in net greenhouse gas emissions compared to 1990 levels. From 2036, it should be possible to offset up to 5 percent of net emissions by purchasing emission credits in third countries. The EU’s Scientific Advisory Board on Climate Change had called for a 90 to 95 percent reduction in emissions by 2040, which should be achieved domestically and not outsourced to other countries.

 

The objectives of the Paris Climate Agreement, to limit global warming to 1.5 °C above pre-industrial levels if possible, were agreed upon by 195 countries at COP 21 in 2015. According to the United Nations, the Earth is now heading for global warming of around 2.8 degrees compared to the pre-industrial era by the end of the century. If countries implement their national climate protection plans and phase out coal, oil, and gas, global warming could be curbed.

 

As a key instrument of European climate policy, the EU Emissions Trading System for buildings and transport (ETS 2) was supposed to be introduced in 2027, but has been postponed until 2028. The introduction of ETS 2 will make the use of fossil fuels such as gas, heating oil, and gasoline more expensive, as an emissions certificate must be purchased for every ton of CO2 produced when these fuels are burned. The annual reduction in certificates is intended to reduce greenhouse gas emissions in the long term.

 

During the vote in the European Parliament on the so-called Omnibus Package I proposed by the EU Commission, the Union parties, with the support of right-wing and far-right parties, significantly weakened the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD), which oblige companies to comply with environmental and social standards. Sustainability reporting will only apply to large companies with an average of more than 1,750 employees and annual net sales of more than €450 million. The standards for social and environmental reporting will be reduced and require less qualitative information. Industry-specific reporting will be voluntary in the future.

 

The European Supply Chain Act aims to ensure that companies take responsibility for human rights and environmental violations in their supply chains. The Supply Chain Directive will only apply to large companies with more than 5,000 employees and annual net sales of over €1.5 billion. These companies are not required to systematically collect information from smaller business partners, but can rely on data that is already available. In addition, companies will no longer be required to submit a transition plan to bring their business model into line with the goals of the Paris Climate Agreement. In the event of non-compliance with due diligence obligations, violations will be punished at the national level rather than at the EU level.

 

The massive weakening of binding environmental and human rights standards has been sharply criticized by numerous environmental organizations. The environmental and human rights organization Germanwatch warns that this decision damages the EU’s credibility as a global pioneer for human rights and sustainable business practices. The watering down of liability regulations, responsibility along the supply chain, and the involvement of employee representatives sends the wrong signal.

 

German Watch has described the German coalition government’s decision to reduce air traffic tax as “ecological madness.” “Air traffic is already responsible for more than eight percent of climate-damaging emissions—without having a viable strategy for reducing greenhouse gases,” explains Anja Köhne, aviation expert at Germanwatch. The sharp decline in domestic air traffic in Germany, which is welcome from an ecological point of view, is due, among other things, to changes in behavior when it comes to business travel. In the film industry, too, the number of domestic flights has fallen significantly as a result of voluntary commitments and the requirements of ecological production standards.

 

Domestic flights account for 47 percent of all flights, and without feeder flights to the Frankfurt and Munich hubs, this figure is only 17 percent of pre-coronavirus levels. “The coalition has given in to the false claims of the aviation industry and given the already highly subsidized sector another tax break of more than 350 million euros,” comments Werner Kindsmüller, president of the Federal Association Against Aircraft Noise (BVF).

 

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