A Climate Law for Europe Making the Paris Agreement Real

Nils Meyer-Ohlendorf A CLIMATE LAW FOR EUROPE MAKING THE PARIS AGREEMENT REAL March 2018 Foreword EFFECTIVE CLIMATE ACTION must be The picture of the Swedish minister of enshrined in law. Binding all stakehold- climate, Isabella Lövin, signing a national ers, laws demonstrate the unequivocal climate law went viral all over the world commitment of a country. A climate (It has some similarities to the infamous law has the benefit of establishing photo where Trump signs the global long-term rules for investments. With gag rule). The Swedish photo was a a climate law in place there will be no successful act of political communi- doubt for the private sector on where cation and it raised awareness of both we are heading. Effective climate laws female and climate leadership. It has now include rules to drive the deployment of been a year since the Swedish climate renewable energy and enhance energy law was signed, and we must now take efficiency. A climate law plays a spe- further action to make the law itself cial role in enabling the scale and speed as viral and powerful as the picture of of transformation required to achieve Isabella Lövin at the signing of the bill. the mid-century deep decarbonisa- tion required by the Paris Agreement The ambitions and targets for reducing The publication can be downloaded at: and build the foundation where money our carbon footprint are in place, but still https://jakopdalunde.se are spent in line with our ambitions. the EU lack political accountability when Jakop Dalunde translating the ambitions into law. The European Parliament One of the Green party’s main polit- climate targets need a stronger status 60, rue Wiertz ical goals for this five year term in and it is obvious that we need better B-1047 Brussels the European parliament has been to tools to make sure that both existing and Phone: +32(0)2 28 45752 launch the work for an EU climate law. future legislation are in line with the Paris The need for a European climate law agreement. The European Parliament Graphic design and illustration: is obvious since the EU legislation of took a major step to improve our tools Charlotte Fuhrman, www.designstudio8.se Thanks to: Jonathan Collie, Maxim Basinski, today consist of a patchwork of legal and better translate targets into law Setyo Ari Wibowo and Icon Master – for the acts regulating energy and climate. when passing the Governance Regula- icons from The Noun Project, page 9. Although we all agreed to fulfil the tion of the Energy Union. We now have a obligations from the Paris agreement, foundation for a climate law for Europe. several of the laws approved post Paris The ball is now in the Council’s court. It is actually does not meet the ambition crucial that they answer to the historical of the agreement. If EU should stay call made by the European Parliament. true to its vision of being number one in renewables and overcome climate Jakop Dalunde, change a climate law is a missing piece. Member of European Parliament CONTENT 1 | Summary 7 2 | Paris Agreement opens a new era of what is 11 required for effective climate governance 3 | Climate laws around the world: 13 What are the essential features? 4 | Doesn’t the EU already have a ‘climate law’? 17 5 | What’s the added value of an EU climate law? 21 6 | How would an EU climate law interact with other EU laws? 23 MAKING THE PARIS AGREEMENT REAL | 7 1 | SUMMARY A growing number of countries, regions are comprehensive and detailed but lack and cities are adopting climate laws. many of these features. In this sense, These laws share a number of features, the existing EU acquis falls short of what for example: legally binding reduction countries and regions have adopted. It targets, emission budgets, review sys- also falls short of what the full imple- tems and independent institutions to mentation of the PA implies. If adopted support decision making. These features as proposed by the European Parliament, are essential to make climate laws effec- the Regulation on Governance for the tive. They are also crucial for the imple- Energy Union (GR) would address a num- mentation of the Paris Agreement (PA). ber of current shortcomings; this would The EU’s current rules on climate action mark significant progress. Common elements of climate laws implied by the Paris Agreement but largely absent from EU rules Common elements of Current Governance Regulation as pro- climate laws EU rules posed by European Parliament Overarching EU Emission budget Long term EU targets in law (2040, 2050 and beyond) Near term EU target in law (2030) Low carbon strategies Review Racheting up mechanism Enhancing natural sinks Independent advisory bodies and other institutions Governance for financial flows to mitigation and adaptation Citizen participation 8 | A CLIMATE LAW FOR EUROPE MAKING THE PARIS AGREEMENT REAL | 9 The structure of EU climate action under the GR’s ‘roof’ and the GR’s main elements. Largely because of these gaps, exist- effective climate legislation. The graphic ing EU climate policies remain incre- adjacent illustrates this structure of EU EU Climate law mental, short term and inadequate for climate action under the GR’s ‘roof’ and A reformed governance regulation decarbonising Europe’s economies with- the GR’s main elements. in the time frame set by the PA. It lacks an • Emission budgets for the EU and • Requirements on Member States unequivocal commitment to full decar- Member States to adopt and implement climate bonisation. A “Climate Law for Europe” • Legally binding emission targets laws and supporting strategies is a particularly promising option to fill for the EU and / Member States • Requirement that sectoral legisla- these gaps. Adopted as a regulation or (2030, 2040, 2050 and beyond) tion serves the implementation of directive, such a law should be inspired • Review and ratcheting up systems, i.e. the objectives of the climate law by best practices of Member States, reg- a system that supports to increase • Requirement that the EU budget, ions or other countries. A Climate Law ambition if required by the PA state aid and public procurement for Europe would not replace sectoral EU • Independent institutions to support rules support achieving the climate legislation but would build on it. and monitor implementation law’s objectives and targets There are various options for where to embed the Climate Law for Europe: 1 Regulation on Governance for the ETS * Climate Action Regulation * Energy Union (GR), Serves the purpose of the climate Serves the purpose of the climate 2 the Emission Trading Directive law and must be amended if required law and must be amended if required and the Climate Action Regulation – by amendments of the climate law. by amendments of the climate law. CAR – the successor of the Effort Sharing Regulation. Because it covers all EU emissions, the GR is the natural home to a Climate Law i for Europe. In light of the position of the • Rules on transport European Parliament adopted in January * ETS: Emission Trading System. EU’s key tool for • Rules on waste 2018 it is possible that the GR will intro- cutting greenhouse gas emissions from large-scale facilities in the power and industry sectors, as well • Rules on buildings duce a large number of the essential fea- as the aviation sector. • Rules on agriculture tures of effective climate legislation into * Climate Action Regulation: Sectors – like transport, EU law. In essence the GR would become buildings, agriculture and waste – that are not included in the Emission Trading System are governed by the EU’s Climate Law, all but in name, if it binding annual greehouse gas emission targets. were to include most of the features of 10 | A CLIMATE LAW FOR EUROPE MAKING THE PARIS AGREEMENT REAL | 11 As an alternative, it is also possible to in- these three instruments are finalised or 2 | PARIS AGREEMENT • Long-term targets: clude the essential features of climate about to be completed very soon. In OPENS A NEW ERA OF The PA includes a long-term target for laws in the Emission Trading Directive, other words, this window of opportunity the second half of the century. Accord- the Climate Action Regulation or the for effective and timely implementation WHAT IS REQUIRED ing to Article 4.1, one of the PA’s funda- LULUCF Regulation. This could mark of the PA has closed. In addition, amend- FOR EFFECTIVE mental rules, Parties aim to achieve net great progress. Legally, they would have ments to these laws are less likely to CLIMATE GOVERNANCE zero emissions after 2050. Supplement- the same effect as the two options men- receive the same amount of public atten- ing this long-term target, the PA deter- tioned but negotiations of reforming tion and gain similar political weight. The Paris Agreement (PA) commits par- mines that developed country Parties ties to hold the increase of global aver- should “undertake” economy-wide abso- age temperature well below 2°C and to lute emission reduction targets (Article pursue efforts to limit the tempera- 4.4). Developing countries are encour- ture increase to 1.5°C. To achieve these aged to “move overtime towards econo- objectives, the PA requires its parties my-wide emission reduction or limitation to aim at peaking of global greenhouse targets”. Despite these important differ- gas emissions as soon as possible and ences between developed and develop- net zero emissions in the second half ing countries, the PA expresses a clear of this century (Article 4.1). To this end, preference for the adoption of national the PA requires immediate and drastic reduction targets in all countries.

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