Advancements in Carbon Reduction Activities in Europe (August 05, 2024 – August 11, 2024)
This report provides a detailed overview of the advancements in carbon reduction activities in Europe announced between August 05, 2024, and August 11, 2024. The information is compiled from various credible sources to ensure a comprehensive and unbiased perspective.
1. Major Shift in EU Carbon Market Prices
Goldman Sachs Group Inc. has indicated a significant shift in the European Union’s carbon market, which is the largest in the world. According to Michele Della Vigna, the EMEA head of natural resources research at Goldman Sachs, the EU is experiencing a “complete break” from the historical relationship where lower gas prices always meant lower carbon prices. This shift is drawing considerable investor interest and is expected to have substantial implications for the carbon market.
Source: Bloomberg
2. EU Carbon Removals and Carbon Farming Certification Regulation
On April 10, 2024, the European Parliament adopted the Carbon Removals and Carbon Farming (CRCF) Regulation, establishing the first EU-wide voluntary framework for certifying carbon removals, carbon farming, and carbon storage in products. This regulation aims to facilitate investment in innovative carbon removal technologies and sustainable carbon farming solutions while addressing greenwashing concerns.
The CRCF Regulation includes quality criteria, monitoring, and reporting processes to ensure transparency and reliability. It covers activities such as permanent carbon removals, carbon farming, and carbon storage in long-lasting products.
Source: European Commission
3. European Union Adopts Strategy for Carbon Capture and Storage Technologies
On February 6, 2024, the European Commission adopted an Industrial Carbon Management Communication outlining a strategy to boost the deployment of carbon capture, storage, transport, and utilization technologies (CCUS) in the EU. This strategy is part of the EU’s commitment to achieving net-zero CO2 emissions by 2050.
The strategy includes developing a platform for demand assessment and aggregation by 2026, creating an EU-wide investment atlas of potential CO2 storage sites, and fostering the utilization of captured CO2 as a resource in industrial production.
Source: Jones Day
4. European Sustainable Energy Week 2024
The European Sustainable Energy Week (EUSEW) 2024, held in Brussels from June 11 to 13, 2024, marked another step towards a net-zero Europe. The event featured over 60 policy sessions and 7 plenaries, with more than 400 speakers from the energy sector addressing an audience of over 11,500 people both onsite and online.
The EUSEW provided a platform for policymakers, industry representatives, businesses, civil society organizations, and citizens to exchange knowledge on key energy topics, reinforcing Europe’s leadership in the global energy transition.
Source: European Sustainable Energy Week
5. EU Scales Up Green Subsidies
In April 2024, the Council of the EU and the European Parliament agreed on a provisional version of the Net-Zero Industry Act (NZIA), expected to be formally adopted by the end of April 2024. This act is part of the broader European Green Deal, which aims to make Europe the world’s first climate-neutral continent by 2050.
The NZIA includes targets for developing CO2 storage capacity, enhancing the deployment of alternative fuels infrastructure, and supporting clean investments through repurposed EU funds and new legislative proposals.
Source: Norton Rose Fulbright
Conclusion
The advancements in carbon reduction activities in Europe between August 05, 2024, and August 11, 2024, demonstrate significant progress towards achieving the EU’s climate goals. These initiatives, ranging from regulatory frameworks to strategic investments, highlight Europe’s commitment to leading the global energy transition and addressing climate change.
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