European Climate Law

Introduction

Regulation (EU) 2021/1119, commonly known as the European Climate Law, is the landmark legislation that codifies the European Green Deal's goals into binding law. Adopted on 30 June 2021, it establishes the framework for the irreversible and gradual reduction of anthropogenic greenhouse gas emissions and the enhancement of removals by natural or other sinks in the Union.

This Regulation amends Regulations (EC) No 401/2009 and (EU) 2018/1999 to align monitoring and governance mechanisms with the new climate ambition. It serves as the legal backbone for the 'Fit for 55' package and future climate legislation.

Main Goal

The primary objective is to achieve climate neutrality by 2050 across the EU, meaning net-zero greenhouse gas emissions (emissions balanced by removals). It also sets a binding intermediate target of reducing net domestic greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels.

Who It Applies To

While the direct legal obligations fall primarily on EU Institutions and Member States to enact policies meeting these targets, the Regulation indirectly applies to all sectors of the economy.

Explicitly mentioned sectors expected to contribute include:

• Energy
• Industry
• Transport
• Heating and cooling and buildings
• Agriculture
• Waste
• Land use, land-use change, and forestry (LULUCF)

Key Provisions

• 2050 Climate Neutrality Objective: A legally binding commitment for the EU to balance emissions and removals by 2050, aiming for negative emissions thereafter.
• 2030 Climate Target: A net domestic reduction of at least 55% in GHG emissions compared to 1990. The contribution of net removals is capped at 225 million tonnes of CO2 equivalent for this target to ensure sufficient mitigation efforts.
• 2040 Intermediate Target: The Commission is mandated to propose a 2040 target within six months of the first global stocktake under the Paris Agreement (starting 2023).
• Adaptation: Requirement for continuous progress in enhancing adaptive capacity, strengthening resilience, and reducing vulnerability to climate change.
• European Scientific Advisory Board on Climate Change: Establishment of an independent body to provide scientific advice and monitor consistency with climate targets.
• Sectoral Roadmaps: The Commission facilitates the development of voluntary indicative roadmaps for different economic sectors.

Obligations & Requirements

For Member States & Institutions:

• Implement necessary measures to meet the 2030 and 2050 targets.
• Adopt and implement national adaptation strategies.
• Report on progress regularly (every 5 years starting September 2023).
• Ensure consistency of all new measures and legislative proposals with climate neutrality.

For Businesses (Indirect):

• While there are no direct reporting forms in this specific text for companies, businesses must align their long-term strategies with the net-zero transition.
• Businesses in regulated sectors (Energy, Transport, Manufacturing) will face stricter rules via the revision of specific directives (e.g., EU ETS, Energy Efficiency Directive) triggered by this framework.

Key Dates

• 2020-03-04: Proposal date.
• 2021-07-29: Entry into force.
• 2023-09-30: First Commission assessment of collective progress.
• 2030: Deadline for the 55% reduction target.
• 2050: Deadline for climate neutrality.

Penalties

The Regulation does not define direct financial penalties for private companies. Instead, it establishes a governance mechanism where the European Commission assesses Member State progress. If a Member State's measures are inconsistent with the objective, the Commission may issue recommendations. Failure to implement EU law can lead to infringement proceedings against Member States under the EU Treaties.