The 27 member European Union (EU) announced a new emissions reduction initiative called “Fit for 55” which aims to cut the output of greenhouse gases 55 percent by 2030, compared with 1990 levels.
The plan affects major industries by:
- Requiring average emissions of new cars to come down by 55% from 2030 and 100% from 2035 compared to 2021 levels. As a result, all new cars registered as of 2035 will be zero-emission. To ensure that drivers can charge or fuel their vehicles at a reliable network across Europe, the revised Alternative Fuels Infrastructure Regulation will require Member States to expand charging capacity in line with zero-emission car sales, and to install charging and fueling points at regular intervals on major highways.
- Requires that aircraft and ships have access to clean electricity supply in major ports and airports. The ReFuelEU Aviation Initiativewill oblige fuel suppliers to blend increasing levels of sustainable aviation fuels in jet fuel taken on-board at EU airports, including synthetic low carbon fuels, known as e-fuels. Similarly, the FuelEU Maritime Initiative will stimulate the uptake of sustainable maritime fuels and zero-emission technologies by setting a maximum limit on the greenhouse gas content of energy used by ships calling at European ports.
- A new Carbon Border Adjustment Mechanism will put a carbon price on imports of a targeted selection of products.
The EU plan is more aggressive than the United State’s plan and significantly more aggressive than anything out of China. Since part of this plan is to spur greater reductions among the bloc’s major trading partners such as the US and China, it will be interesting to see the various coalitions that form in support of and opposition to the new European initiative.
Of course, if the leading vehicle manufacturers in the world cease selling vehicles with combustible engines by 2035, global market forces will dictate changes in the US, regardless of what Congress or various States decide to do. Companies that rely on vehicles, particularly small fleets may wish to begin piloting new technology soon. To that end, EVrinda is an aggregation platform that brings qualified customers, innovative financiers, utilities, and third party vehicle and charger providers to develop and implement customized business models to accelerate fleet electrification.
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