KPMG report: Provisional agreements in EU on emissions trading, carbon border adjustments, and climate funding
Summary and analysis of the “Fit for 55” package
Summary and analysis of the “Fit for 55” package
The EU continues with the rapid revision of existing, and introduction of new, laws to help achieve its goal of reducing greenhouse-gas emissions by at least 55%, compared to 1990 levels, by 2030.
The “Fit for 55” package, which is embedded within the European Green Deal and encompasses 14 legislative proposals designed to align current EU laws with the EU’s climate ambitions, was presented by the European Commission (EC) in July 2021 for further discussion and agreement with the European Parliament and the Council of the European Union. Before the proposals can be adopted and signed into law, the Parliament and EU Council must formally agree to the legislative text.
While all of the proposals work together to achieve a common goal, three of these proposals are so intertwined that they, in essence, operate as a package deal: the revision and extension of the current EU Emissions Trading System (ETS), the introduction of an EU Carbon Border Adjustment Mechanism (CBAM) and the establishment of a Social Climate Fund (SCF).
The EC, EU Council and Parliament on 13 December 2022 reached a provisional political agreement on the introduction of the world’s first CBAM (read TaxNewsFlash), while the provisional political agreements on the ETS and SCF were reached on 18 December 2022.
Read a December 2022 report [PDF 421 KB] prepared by the KPMG professionals that summarizes and provides analysis and observations of the “Fit for 55” package
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