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EU's 2050 climate neutrality law ups pressure on Asia
Adoption of regulatory framework for sustainability puts Europe far ahead of world's other regions
Bayani S. Cruz 5 Jul 2021

The European Union’s adoption of the European climate law on June 28 codifies its goal of reaching climate neutrality – that is, bringing greenhouse gas (GHG) emissions down to zero for individuals and organizations – by 2050, and it puts added pressure on Asia and the rest of the world to follow the EU’s lead or be left behind in the race to slowdown global warming.

The climate neutrality law – the centrepiece of the European Green Deal, the EU’s strategy to transform it into a leader in the development of global sustainability – was officially adopted by the EU Council following a political agreement reached with the European Parliament on April 21 and the parliament’s adoption of its position on first reading on June 24.

What makes the passage of the EU climate law significant for Asia and the rest of the world is that it puts the EU far ahead of other regions in terms of setting a regulatory framework for sustainability.

Critics in Asia argue that, while fast-tracking climate neutrality is commendable, the target of achieving climate neutrality is being done mostly within a European framework, which may not necessarily be suitable for the rest of the world.

For instance, unlike in Europe, the level of awareness and adaptation of sustainability in Asia is not on the same level for many countries in the region, with wide variance in the contribution of fossil fuels to their economies, the levels of investment in sustainability products, regulatory standards related to climate change, and the adoption by business sectors of best sustainability practices.

There is apprehension among critics that, with the EU climate law now in place, there may be less flexibility on the part of the EU representatives when it comes to negotiating and working with their counterparts in Asia to establish new regulatory standards on sustainability. There are also apprehensions that the new law may make it challenging to achieve a level playing field for Asian players when it comes to developing sustainability investments.

In addition to the 2050 target, the new legislation also sets a binding EU climate goal to reduce net GHG emissions by at least 55% by 2030 compared with 1990. The 2030 target was initially proposed in September 2020 by European Commission President Ursula von der Leyen, and it raises the EU ambition from its prior 40% by 2030 goal and puts it on track for 2050 climate neutrality, according to the EU statement announcing the adoption of the new law.

The commission will also propose an intermediate climate target for 2040, if appropriate, at the latest within six months after the first global stocktake carried out under the Paris agreement. At the same time, it will publish a projected indicative of the EU’s GHG budget for the period 2030-2050, together with its underlying methodology.

The budget is defined as the indicative total volume of net GHG emissions – expressed as carbon-dioxide equivalent and providing separate information on emissions and removals – that are expected to be emitted in that period, without putting at risk the EU’s commitments under the Paris agreement, according to the statement.

The new law also establishes a European Scientific Advisory Board on Climate Change, which will provide independent scientific advice and produce reports on EU measures, climate targets, indicative GHG budgets, and their coherence with the European climate law and the EU’s international commitments under the Paris agreement.

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