Latest news with #EUEmissionsTradingSystem
Business Times
22-07-2025
- Business
- Business Times
Energy and climate cooperation still key for China-EU ties
MUCH attention has focused on the chill in ties between Brussels and Beijing in recent years. However, ahead of the EU-China summit in Beijing on Thursday, there are still potential areas of deep bilateral cooperation. Perhaps the standout example is climate change which has been an issue helping to define bilateral ties in the 21st century. So much so, in fact, that the EU Emissions Trading System was very influential in China's design of its own carbon markets. Earlier this month, the two powers held their latest high-level summit on the environment and climate. On the 50th anniversary of bilateral ties, both are hoping to further promote the effective implementation of the 2015 Paris Agreement. With US President Donald Trump seeking US withdrawal from the Paris treaty, the importance of EU-China climate cooperation has only grown. This is particularly true given that all nations face a mid-September deadline to submit new 2035 climate targets to the UN. These submissions precede the United Nations Climate Change Conference – COP30 – in Brazil, which will set out country-specific greenhouse gas (GHG) emissions reduction targets in the next decade. Earlier this year, the European Commission proposed a 2040 climate target of reducing net GHG emissions by 90 per cent, compared to 1990 levels. In response, Chinese Vice-Premier Ding Xuexiang told European Commission Executive Vice-President for a Clean, Just and Competitive Transition Teresa Ribera that Beijing will release a new national climate plan in autumn, potentially timed around September's UN deadlines. In 2024, the world surpassed 1.5 deg C of annual warming for the first time and is on a trajectory for 2.6 deg C by the end of the century, even under current emission reduction plans. Meeting the Paris Agreement's 2 deg C target – let alone the 1.5 deg C one – demands far more ambitious cuts. A NEWSLETTER FOR YOU Friday, 12.30 pm ESG Insights An exclusive weekly report on the latest environmental, social and governance issues. Sign Up Sign Up Yet, since the pandemic, there have been new complications in climate ties between Brussels and Beijing. For instance, China has criticised the EU for what it perceives as the protectionist slant of the Carbon Border Adjustment Mechanism, a European initiative aimed at addressing carbon leakage by imposing a price on carbon emissions for imported goods. The EU has rejected this narrative with Ribera saying that Brussels does not intend 'to go down a race towards low incomes, lower labour rights or lower environmental standards'. Correspondingly, the EU has urged Beijing to stop building new coal power plants. Increased approvals for such plants have added to worries that Beijing may backtrack on ambitions to peak GHG emissions at or before 2030, ahead of carbon neutrality by 2060. Another source of friction is the alleged dumping of Chinese-made electric vehicles in Europe. Ribera has said that 'there is this assumption that counting on cheap equipment could be good to boost the potential of new developments and new decarbonisation pathways in the European market that could be beneficial. And there may be truth on one side, but as you also know, it may be difficult in terms of how it could impact on the capacity to ensure a level playing field'. EU decision-makers such as Ribera appear to believe that encouragement, not condemnation, is the best way to secure climate cooperation from Beijing. The assumption is that, especially with Trump in office, Beijing needs to be at the table on climate issues rather than left off it. With China being the world's largest GHG emitter by far, any international climate action during this era would be much weakened without Beijing's involvement. Beyond this, however, many EU officials have long believed that Chinese policymakers fundamentally share Europe's vision for a prosperous, energy-secure future in a stable climate and recognise the need for bilateral collaboration. Indeed, China, too, is vulnerable to the threats of global warming, including intense heat waves and severe flooding. The heart of EU-Chinese cooperation on this agenda is the 2015 EU-China Joint Statement on Climate Change. Under this, both parties agreed to cooperate on developing a cost-effective low-carbon economy, including intensifying cooperation in domestic mitigation policies, carbon markets, low-carbon cities, greenhouse gas emissions from the aviation and maritime industries, and hydrofluorocarbons. Even amid the complexities of the climate crisis, both Chinese and EU policymakers still see that accelerating the transition to a low-carbon future holds vast, complementary opportunities. They believe that with the right vision and commitment, this potential can be realised, deepening a collaboration that is poised to grow. China's planned investment in the green economy could be a game-changer, a fact that the EU is increasingly recognising. For instance, China is already the world's biggest and fastest-growing producer of renewable energy. This investment is buttressed by Beijing's policy commitments on the climate, clean air and energy agendas. Chinese President Xi Jinping has set a strategic direction for the economy, with determination to deepen the transition of the country's development model towards a greater emphasis on services and innovation. Europe has clear strengths in clean technology that are valuable to China. As the latter continues its trajectory to potentially become the world's largest economy, there are substantial commercial opportunities for EU's leading science and technology firms. Crucially, this collaboration is not one-sided. China is already the world's largest investor in renewable energy, and it is possible that technology and expertise can flow in both directions. This two-way exchange can accelerate the growth of low-carbon industries, and align Europe more closely to the world's future largest economy. As a key architect of the Kyoto Protocol and the Paris Agreement, Europe must continue to lead the fight against climate change. This includes the growing need for the EU to accelerate its emissions cuts to meet its goals in coming years, such as the 2040 target of a 90 per cent reduction. Ultimately, despite a wider chill in ties, the EU and China still have much to gain from a deep partnership on the clean-energy transition. Now is thus the moment to double down on cooperation, and collectively chart the course for the 21st-century clean-energy economy. The writer is an associate at LSE IDEAS at the London School of Economics
Business Wire
17-07-2025
- Automotive
- Business Wire
Hyundai Glovis Partners with Lab021 to Deploy ‘Vessellink'
TOKYO--(BUSINESS WIRE)--Hyundai Glovis, a global leader in smart logistics, has entered a strategic partnership with maritime IT solutions provider Lab021 to implement Vessellink, an advanced digital reporting system designed for ship operations. The collaboration aims to integrate Vessellink for Ship, Lab021's flagship platform, into Hyundai Glovis's maritime operations. This system automates data collection, analysis, and reporting of critical vessel metrics such as real-time voyage monitoring, carbon emissions, and operational efficiency. By digitizing these processes, Hyundai Glovis seeks to enhance operational intelligence and agility while reducing reliance on manual reporting. This initiative is timely as the maritime industry faces increasing regulatory demands on decarbonization. The International Maritime Organization (IMO) is advancing measures targeting greenhouse gas reduction, including stricter carbon intensity standards and the introduction of a global carbon pricing mechanism expected around 2027. In parallel, the European Union's FuelEU Maritime regulation, effective in 2025, requires vessels calling at EU ports to progressively increase the use of low-carbon fuels. Additionally, the EU Emissions Trading System (EU ETS) extended its scope to include shipping in 2024 and plans full emissions coverage by 2026. By adopting Vessellink, Hyundai Glovis positions itself ahead of these regulatory requirements, strengthening its Environmental, Social, and Governance (ESG) commitments. The platform's detailed emissions tracking and real-time reporting improve transparency and build trust with global customers and regulators. A Hyundai Glovis spokesperson commented, 'We are upgrading our data management to align with the maritime sector's goals for decarbonization and digital innovation. Vessellink enables compliance and streamlines our operations. We look forward to expanding our partnership with Lab021 to develop smarter, greener shipping solutions.' Lab021 CEO Sangbong Lee added, 'Vessellink represents the future of maritime digitalization, merging precise vessel data with intelligent automation. Our partnership with Hyundai Glovis marks a key step in expanding global adoption of data-driven carbon management tools in shipping.' This collaboration highlights Hyundai Glovis's commitment to future-proofing its maritime activities and reflects the broader industry trend where digital transformation is essential for sustainable shipping.
Euractiv
13-07-2025
- Business
- Euractiv
Carbon markets aren't a cop-out, they're a climate solution
Dr. Daniel Klier is the CEO of South Pole, a climate consultancy. A former Partner at McKinsey, Daniel is a recognised sustainability leader, having chaired climate finance groups for the Bank of England and the Institute of International Finance. The EU's 2040 climate target proposal is the boldest policy pivot in years. By backing the use of high-integrity Article 6 carbon credits and opening the EU Emissions Trading System to carbon removals, Brussels has delivered an unmistakable message: Carbon markets are back in the game. While no silver bullet, when the cost of inaction is mounting and public budgets are stretched, no credible climate tool can be left on the shelf. Cutting emissions by 90% based on 1990 levels by 2040 is the penultimate stop before full decarbonisation by 2050. It defines the EU's negotiating position ahead of COP30 in Brazil and will influence global climate ambition just as countries submit their updated national climate targets. One of its most significant provisions is the allowance of international carbon credits worth 3% of EU 1990 emission to be used towards the 2040 target. This may sound modest, but it's a breakthrough: the EU has formally backed the use of Article 6, a key provision in the global climate pact (also known as the Paris Agreement) that enables countries to work together by trading carbon credits to reduce emissions more efficiently and fairly. Even more notable: the expansion of the EU Emission Trading System (ETS) to include domestic project-based, technology carbon removals, opening one of the world's most influential carbon pricing mechanisms to a new category of climate solutions. These aren't tweaks, they're turning points. As the EU balances net zero with energy security, competitiveness, growth and defence, carbon markets are reemerging as a legitimate pillar of its climate policy. It's not just a residual fix, but a driver of finance, innovation and global cooperation. In practical terms, it amounts to around 140 million tonnes of CO ₂ equivalent by 2040, roughly equal to the annual emissions of 30 million cars. A fraction of the EU's overall emissions, yes, but a clear vote of confidence in international carbon trading. This matters. After years of technical negotiations – many led by European delegates – Article 6 of the Paris Agreement is finally in play. It allows countries to trade emissions reductions across borders, helping unlock climate finance for projects that wouldn't otherwise happen, particularly in developing economies. As climate finance from developed nations continuously falls short, private investment is non-negotiable. And high-integrity carbon markets can help close the gap. When well-designed and governed, these markets create powerful financial incentives for low-carbon transformation across sectors, from clean energy and transport electrification to modernised waste systems and the early retirement of coal-fired plants. One thing is clear: Article 6 is no excuse to stall or delay the low-carbon transition. So while the volumes of carbon that have been hotly debated these past few weeks are relatively small, the opportunity to channel finance to emerging economies is significant. The 2040 target also proposes opening the EU Emissions Trading System (ETS) to permanent, domestic project-based technology carbon removals. The ETS – with its scale, rules, and market discipline – offers what the sector badly needs: a credible price signal to develop new technology solutions and incentivise innovation. Europe has long claimed that innovation is key to its green growth strategy. Including high-integrity removals within its flagship climate mechanism makes good on that promise. It will drive down costs as demand grows and accelerate technology development at the pace needed. Crucially, the 2040 goal isn't just about setting targets, it's about delivering on them. That means putting Article 6 credits and removals into practice, not just leaving them on paper. The risk isn't utilising carbon markets. It's failing to act at the scale and speed the climate crisis demands.
Euronews
02-07-2025
- Business
- Euronews
EU open to carbon offsets on path to 2040 emissions target
The European Commission formally proposed a 90% carbon emissions reduction target by 2040 in an amendment to its Climate Law on Wednesday, as a pathway to achieving zero emissions by 2050. The 90% emissions reduction target allowed for the controversial use of international carbon credits to account towards the goal, a mechanism that allows countries or companies to buy emission reduction credits from projects outside the EU. While these credits can theoretically represent genuine climate action, critics argue they often act as a license to pollute, letting wealthier nations avoid making domestic changes. The Commission opened the door to outsourcing a portion of Europe's climate effort by effectively allowing the capture or removal of carbon to happen beyond EU borders. "We're broadening the solution space," said Climate Commissioner Wopke Hoekstra. 'Part of the work, part of the emission reductions, can be done outside the European Union.' The Dutch Commissioner pointed out that the vast majority of reductions, including carbon capture, will still take place within Europe. Concerns and limits While the original climate law stipulated that both 2030 and 2050 targets must be met through domestic efforts, the Commission now suggests that a limited share of international credits could count toward the 2040 goal. The Commission's own Scientific Advisory Board has previously expressed scepticism about the use of international offsets—not opposing them entirely, but warning they should supplement, not replace, domestic action. To address these concerns, the Commission proposes capping international credits at 3% of the 2040 target. This figure is rooted in Article 6 of the Paris Agreement, a clause largely shaped by the EU, and aligns with Germany's stance on the issue. A senior Commission official described the cap as a way to balance European investment priorities with global climate cooperation. 'We believe it's important not to go for a very high proportion of these credits,' the official said. 'This sends the right signal to both European actors and international partners: we're open to using such credits, but only if they are well-executed and uphold high integrity.' Additionally, these credits will only be permitted during the second half of the next decade (2036–2040), giving time to build more robust partnerships and ensure the availability of high-quality credits. The Commission official also specified that any international credits must align with the Paris Agreement, demonstrate environmental effectiveness, and be supported by rigorous monitoring, reporting, and verification systems, similar to the EU's own emissions trading scheme. Domestic flexibilities expanded Beyond offsets, the amendment introduces more sectoral and domestic flexibilities to help achieve the 2040 target in a cost-effective and socially just way. This includes incorporating permanent carbon removals into the EU Emissions Trading System (EU ETS) and allowing cross-sectoral compensation. For example, if a country exceeds emissions reductions in the transport or waste sectors, it could use that overperformance to compensate for underperformance in the land use sector. While such flexibilities already exist under the current Fit for 55 framework, the new approach seeks to expand them. Executive Vice-President Teresa Ribera explained she often hears from member states performing strongly overall, especially in sectors like housing or transports, but struggling in others like aviation. 'Shouldn't we, without lowering the bar, allow them to overachieve in some areas while being more flexible in others?' According to Ribera, these changes reflect a pragmatic evolution of the EU's climate strategy, aiming to preserve ambition while accounting for diverse national circumstances.
Fibre2Fashion
30-06-2025
- Business
- Fibre2Fashion
EU power costs could drop 57% with renewables: EEA
The European Environment Agency (EEA) report 'Renewables, electrification and flexibility — for a competitive EU energy system transformation by 2030' finds that the European Union has already demonstrated its ability to shift away from fossil fuels, with electricity-sector CO2 emissions dropping significantly over recent decades. In comparison, progress in decarbonising heating and transport, where gas and oil consumption dominate, is slower. The European Environment Agency report finds that scaling up renewables and electrification could cut EU variable electricity generation costs by up to 57 per cent by 2030, while enhancing energy independence and reducing reliance on imported gas. Achieving this requires boosting renewable capacity, doubling grid flexibility, and coordinating infrastructure. In 2022, higher gas prices doubled the EU energy import bill, bringing it up to 4 per cent of GDP. The report underscores that renewables, particularly solar and wind, offer a sustainable path toward increased energy independence. By investing in domestic renewable electricity generation, alongside stronger efforts to improve energy and resource efficiency, Member states can replace volatile fossil fuel imports with available, lower-cost and cleaner energy sources. 'This is not just about achieving climate targets. Shifting to more renewables and electrification is an opportunity to reduce dependence on imported fossil fuels. That would lower wholesale electricity prices in the medium term, and reinforce Europe's resilience and strategic autonomy in an increasingly uncertain geopolitical context,' said Leena Ylä-Mononen, EEA executive director . A forward-looking analysis by the European Environment Agency projects that meeting the EU's 2030 goals for renewables and energy efficiency could reduce variable electricity generation costs by up to 57 per cent compared to 2023 levels. Although long-term benefits include lower consumer prices, initial savings may be offset by investments needed to enhance grid flexibility and bolster national infrastructure. The report emphasises that greater reliance on renewables and electrification charts a course toward increased energy independence for Europe, reducing vulnerability to fluctuating gas imports. However, capturing these benefits requires major shifts in investment and system design. Cutting EU power costs and boosting energy security depends on three priorities: increasing renewable capacity to 77% by 2030, doubling grid flexibility through smart systems and storage, and enhancing EU-wide coordination to reduce disparities and improve resilience. Electrification of home heating and industry, powered by heat pumps and deep renovation of inefficient buildings, will be vital to phase out fossil fuels already in the short term. In industry, predictability under the EU Emissions Trading System — the main economic instrument addressing emissions from this sector will incentivise further emission reductions. In transport, accelerating the adoption of electric vehicles — combined with infrastructure for walking, cycling and collective transport — will drive both decarbonisation and consumer savings. The report also encourages Member States to coordinate policy and technology efforts. This will require aligning taxation and pricing signals across the whole energy system and phasing out fossil fuel subsidies, which reached record levels in 2022–2023. Turning around the stagnating electrification trend by 2030 requires clearer economic signals from across the whole energy system. Guiding private consumers' decisions regarding buildings and transport are likely to require more comprehensive policy packages, in addition to price signals.
