Governments miss EU deadline on social support for climate action
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Euractiv
12 hours ago
- Euractiv
What a 90% emissions cut could mean for EU citizens
The EU's 2040 climate goal is likely to affect Europeans' wallets – and those of the companies they work for. Whether a 90% reduction in Europe's greenhouse gas emissions compared to 1990 levels will bring net costs or benefits for workers, households, and industry depends on how EU leaders choose to implement the target – if they agree to it at all. That decision comes as the European Commission shifts its focus increasingly toward competitiveness and lowering energy prices. In recent months, calls have mounted to roll back landmark policies like the 2035 phase-out of petrol and diesel cars, or to weaken key measures by outsourcing climate action through international carbon credits, or by capping the price polluters must pay for emitting CO2. This is despite mounting evidence that failing to act on climate could ultimately cost more – and undermine crucial price signals meant to steer companies toward cleaner technologies like electrification, sustainable fuels, and carbon capture and storage. Rising costs Transport remains the only EU sector where emissions have increased since the 1990s. It is also where the public is most likely to feel the cost of the green transition first-hand – even as more affordable electric cars enter the market. Business travellers and tourists, for instance, could see airfares rise as airlines begin passing on the cost of sustainable jet fuel mandates to consumers. Fully decarbonising European aviation by 2050 is expected to cost €2.4 trillion in investment, according to the lobby group Airlines for Europe. The NGO umbrella group Transport and Environment (T&E) warns that by 2030, the transport sector could account for up to 45% of the EU's total emissions – making its transformation critical to meeting climate targets. Likewise, renovating Europe's poorly insulated homes and replacing gas boilers with efficient heat pumps will bring significant upfront costs for many households, even as these measures aim to reduce emissions and long-term energy bills. The other side of the balance sheet Still, the EU's push to decarbonise energy through renewables is expected to lower energy bills over time and reduce the bloc's reliance on imported fossil fuels – potentially freeing up billions for strategic investments. According to T&E, the European Commission's own modelling suggests a 90% reduction pathway would cut the EU's oil bill by $75-100 billion a year. Failing to act, on the other hand, carries indirect but massive economic risks amid rising global temperatures. 'Over the period 2031-2050, the cumulative additional GDP cost of a pathway leading to worse global warming could amount to €2.4 trillion in the EU, compared to the costs under a pathway compatible with the 1.5°C objective of the Paris Agreement,' the European Commission said last year. And EU citizens are already paying the price for 'extreme weather events that are accelerated by climate change', consumer organisation BEUC told Euractiv. Making it happen How the costs and benefits of the 2040 target will be distributed depends largely on how Brussels acts – and how national governments respond. Some core legislation is already in place, including a new carbon price on heating and transport fuels. To cushion the impact, especially for low-income households and small businesses, the law includes a Social Climate Fund to recycle revenues back to vulnerable groups But this week, 26 out of 27 national governments missed the deadline to submit the national plans needed to activate the fund. More broadly, any backtracking on climate policies could derail the price signals these mechanisms are designed to send to the private sector – frustrating many businesses that see the green transition as a strategic opportunity, not a burden. The risk of being too flexible The European Commission is expected to allow the use of international carbon credits to meet the yet-to-be-confirmed 90% target. This means investing in climate-friendly projects abroad – like tree planting in developing countries – and counting the resulting emissions savings toward Europe's target. Proponents argue this could cut the costs of the green transition. Critics – including some promoters of carbon capture and storage technology as well as highly sceptical environmental campaigners – say it would undermine incentives to cut emissions in Europe and delay the development of clean technologies more generally. 'The EU's cleantech industry experiences the greatest benefits when EU climate investments are made in Europe – not abroad. Why should we outsource the benefits that the energy transition provides to countries outside of the EU,' the socialist lawmaker Mohammed Chahim asked. Greenpeace's Thomas Gelin echoed this message: 'With an effectively lower domestic target, there will be less impetus for businesses and communities in Europe to implement the solutions we need.' (de)
Euractiv
a day ago
- Euractiv
Governments miss EU deadline on social support for climate action
The plans are needed to unlock the €65 billion Social Climate Fund, aimed at shielding Europeans from the costs of the green transition.
Euractiv
3 days ago
- Euractiv
EU Renewables surge, but millions still struggle to heat homes
Renewable energy continues to gain ground in the European Union, now ranking third among power sources for citizens across the bloc. While overall energy consumption is decreasing, energy poverty remains a serious and growing concern. According to Eurostat data for 2023, the EU used 4.1 per cent less energy compared to 2022, and nearly 12 per cent less than in 2013 – a clear reflection of the bloc's long-term downward trend in energy use. Oil remains the dominant source, followed by natural gas. While oil consumption edged up slightly, natural gas usage dropped significantly, largely as a result of the war in Ukraine and efforts to diversify supply. Solid fossil fuel use also declined, while renewables continued to expand steadily. Nuclear power and waste played a comparatively smaller role in the energy mix. STATISTIC 1 In its 2023 analysis of the EU electricity sector, global energy think tank Ember confirmed that wind, hydro and solar have become the most prominent energy sources, ahead of bioenergy and others. STATISTIC 2 The bloc's four largest economies – Germany (19 per cent), France (17 per cent), Italy (12 per cent) and Spain (9.5 per cent) – together accounted for 58 per cent of electricity demand, Ember noted. STATISTIC 3 On a per capita basis, Finland and Sweden led the top ten consumers, a trend attributed to colder climates, high levels of development and greater electrification. STATISTIC 4 Less is more Since 2005, the EU has made greater progress in cutting primary energy consumption than final energy use, thanks to renewables uptake, energy-efficient technologies, shifts away from energy-intensive industries, and warmer winters linked to climate change. Data from the European Environment Agency show most member states reduced energy use between 2005 and 2023. Greece recorded the steepest decline in both primary and final energy use, while Poland and Malta saw increases. Between 2022 and 2023, Bulgaria and Estonia posted the largest drops in primary energy consumption, with Slovenia and Austria leading reductions in final energy use. STATISTIC 5 Reducing energy consumption not only lowers emissions and pollution but also improves public health and reduces the bloc's dependence on energy imports. The EU has set binding energy consumption targets for 2030: 992.5 million tonnes of oil equivalent for primary energy, and 763 million tonnes for final energy. Although long-term projections suggest the bloc is not yet on track, the consistent reductions over the past three years are encouraging. Energy poverty deepens In 2023, transport accounted for the largest share of final energy use (32 per cent), followed by households and industry. While household and industrial consumption has generally declined, transport usage remains volatile. STATISTIC 6 Despite its falling share, the household sector continues to reflect stark inequality. In 2023, the number of Europeans unable to adequately heat their homes reached its highest level since 2021 – a troubling signal of rising energy poverty. STATISTIC 7 Eurostat data for 2024 show that 32 per cent of households in Greece reported being in arrears on utility bills due to financial difficulties, well above the EU average of 6.9 per cent. The Netherlands recorded the lowest share at 1.9 per cent. STATISTIC 8 The 'high share of energy expenditure in income' (2M) – which flags households spending over twice the median share of income on energy – also reveals uneven levels of hardship. While countries like Estonia and Hungary report figures slightly above 10 per cent, Greece stands out again with a rate exceeding 28 per cent. The EU average is 8.2 per cent. These disparities expose the disproportionate burden placed on low-income households, particularly homeowners, and highlight the need for targeted policy interventions sensitive to national contexts and price dynamics. STATISTIC 9 Poor housing conditions further compound the issue. In 2023, 15.5 per cent of the EU population lived in homes affected by structural problems such as leaking roofs or damp walls – the highest rates were found in Cyprus (31.6 per cent), Portugal (29 per cent), and Spain (23 per cent), compared to just 4.8 per cent in Sweden. STATISTIC 10 Towards a fairer future As EU energy policies evolve, fairness and equity are gaining prominence. In a recent ECPR article, researcher Morgiane Noel highlights reforms aimed at addressing energy poverty through legislative and financial mechanisms. Updates to the Energy Efficiency Directive mandate that a proportion of energy savings must directly benefit low-income households. These changes are expected to enhance data collection, target building renovations, and deliver financial support for energy efficiency improvements. Meanwhile, the Social Climate Fund, launched in 2021, is designed to offer direct financial assistance – such as bill subsidies – and promote green jobs for workers transitioning from fossil fuel sectors. But the expert warns that without a cohesive EU strategy, these efforts risk falling short. This means greater coordination, increased investment, and support for innovative initiatives such as community energy projects, smart grid technologies, and new financing instruments. Ensuring universal access to clean, affordable energy is not only a matter of policy – it is a question of justice. If implemented effectively, current measures could significantly reduce poverty and inequality while putting Europe firmly on the path to a greener, fairer energy future. [Edited By Brian Maguire | Euractiv's Advocacy Lab ]
