On 6 February, the EU released three documents that together redefine its roadmap for decarbonisation to 2040 and beyond: its 2040 Climate Target, Net Zero Industry Act (NZIA) and Industrial Carbon Management Strategy. As with other decarbonisation policies, in time other major economies are likely to follow the EU’s lead – making their implications doubly important. Let’s take a look at what they mean for the bloc’s low-carbon economy.
Bold intentions but funding is needed to deliver
The big headline is a 90% net greenhouse gas (GHG) emissions reduction by 2040. This target bridges the gap between the bloc’s 55% 2030 emissions reduction goal and its aim of reaching climate neutrality by 2050. It would require a tripling of the average rate of emissions reductions in the EU since 1990.
The Industrial Carbon Management Strategy details how carbon capture and removal technologies will help the bloc reach its emissions reduction goals. It envisages capturing 280 million tons annually by 2040, rising to around 450 million tons by mid-century.
Finally, the NZIA incentivises investments in solar, wind, battery, grid and other key technologies. By 2030 it seeks to cover 40% of the bloc’s needs with domestically produced technologies.
Currently, a lack of sufficient funding and policy support mean the EU is behind schedule for its existing 2030 and 2050 goals. Achieving these ambitious new targets will require a huge scale-up of electrification, together with the right balance of sticks and carrots. So, does this new roadmap deliver?
1. CCUS: lofty ambitions and clear direction, but the clock is ticking
Having previously lagged the UK, US and Canada, the EU’s Industrial Carbon Management Strategy finally catapults it to the front of the carbon capture, utilisation and storage pack. It aims to double the current pipeline of projects operating or in advanced development by 2030, while the 2050 target represents around 35% of the bloc’s current emission levels from power and industry.