Energy60

What the EU’s mammoth climate and energy package means for local governments

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If the European Green Deal set general objectives for a more sustainable and eventually carbon-neutral Europe, the Fit for 55 package presented earlier this year outlines the legislative measures to achieve this. This analysis highlights a few of the package’s major proposals: energy efficiency, alternative fuel infrastructure and forests.

European Commission President Ursula von der Leyen put the attainment of climate neutrality by 2050 at the core of her political agenda with the adoption of the Green Deal a few months after taking office in 2019. The intermediary target of reducing emissions by at least 55% by 2030 is enshrined in the Climate Law adopted in early 2021.

Published ahead of the COP26 climate summit in Glasgow in November, the Fit for 55 package contains 13 legislative and non-legislative proposals[1]. These aim to raise the ambitions of several EU policies in the fields of climate, energy, environment, buildings, forests and transport, while ensuring a socially fair transition.

The creation of an EU Social Climate Fund  has been proposed as part of the revision of the EU emissions trading system (EU ETS). The ETS reform will extend emissions trading to cover the building and road transport sectors. Emissions from these sectors will not be covered by the existing EU ETS, but by a new, separate emissions trading system. The Social Climate Fund is meant to address the social impacts that would arise from the new system.

Energy efficient buildings: 3% renovation target is excessive

The Commission proposes to amend the Energy Efficiency Directive to require EU countries to collectively ensure an additional reduction of energy consumption of 9% by 2030 compared to the objectives set for 2020.

A key element for the public sector – including local and regional governments – is a requirement to achieve an annual energy consumption reduction of 1.7% and to renovate each year at least 3% of the total floor area of buildings owned by all levels of public administration.

CEMR is concerned about this obligation as presented. A certain level of flexibility should be applied insofar as emission reductions are proven. Many  public buildings are older or even historic buildings, and therefore a uniform 3% annual renovation target would be too onerous for local and regional governments.

Alternative fuel instracture: coordination needed between all levels of government

A revised directive will set a number of mandatory national targets for the deployment of infrastructure so road vehicles can use alternative fuels, such as electricity, hydrogen or natural gas. It is crucial that Member States engage with municipalities and regions to ensure that the measures implemented by different governance levels reinforce and leverage impact.

The transition to alternative fuels also requires strong technical resources and capacity. Local and regional governments need technical expertise, enabling measures for joint public procurement and adequate financial support to make this transition a reality.

Forests: 3 billion trees to be planted by 2030

Within the new EU Forest Strategy, the European Commission aims to improve the quantity and quality of forests. Acting as carbon sinks, forests contribute to reducing emissions and are essential to maintaining biodiversity. The Commission is notably calling for a strict protection of remaining EU primary and ancient forests (today estimated at 3% of the EU’s territory). In addition, the EU wants 3 billion additional trees to be planted by 2030.

The strategy has been under discussion for some time with a wide range of stakeholders, including local and regional representatives. They call for sustainable forest management with a balance between three pillars: environment, social and economy.

Next steps

The Fit for 55 package has a strong territorial dimension given that a wide range of actions to attenuate or mitigate climate change are taking place at local or regional level. Moreover, climate change disproportionately affects certain vulnerable territories and populations.

While the majority of the proposals do not directly target local and regional governments, they will have a significant impact on them. This is why the local and regional level needs appropriate resources to comply with the legislation and cannot be left unsupported. The local and regional perspective must be well reflected in the legislative proposals going forward.

The CEMR Secretariat will closely follow the negotiations in the Parliament and the Council for the most relevant proposals, notably on energy efficiency, renewables, buildings and transport.

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[1] The proposals include revisions and amendments to existing legislation:

• Revision of the EU Emissions Trading System (ETS)
• Revision of the Regulation on LULUCF and Effort Sharing Regulation
• Amendment of the Renewable Energy Directive
• Amendment of the Energy Efficiency Directive
• Revision of the Energy Tax Directive
• Revision of the Directive on the deployment of alternative fuels infrastructure
• Revision of the Regulation setting CO2 emission performance standards for cars

New proposals:

• Carbon Border Adjustment Mechanism (CBAM)
• Social Climate Fund
• New EU Forest Strategy

And future proposals:

• Revision of the energy performance of Buildings Directive
• Revision of the Third Energy Package for gas

Paris and Samsø are “climate leaders”, says UN

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The UN has revealed the winners of the 10th anniversary edition of its Global Climate Action Awards. Among the winners are the City of Paris and the Danish island-municipality of Samsø. The two municipalities were awarded the title of “climate leaders”.

Paris was recognised for its efforts to achieve carbon neutrality by 2050, to expand the use of solar panels to 20% of Parisian rooftops and to become a 100% bikeable city.

Samsø, with a population of around 3700, has already become net carbon zero through the use of renewable energy, electric vehicles and biomass.

The awards serve as another example that all places – urban or rural, great or small, central or peripheral – can do their part and have an impact against climate change.

Co-creating the green transition with cities: a conversation with Mayor Sari Rautio of Hämeenlinna

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Sari Rautio is chairperson of the city board of Hämeenlinna, a mid-sized city in Finland, and CEMR spokesperson on the environment. She spoke with us to discuss the many actions her city is taking for a sustainable future and the reasons she signed the Green City Accord. Read on to discover one among countless examples across Europe of how the goals of the Green Deal are being realised from the ground up!

How would you describe the city of Hämeenlinna?

Hämeenlinna is the oldest inland city in Finland, rich with history and beautiful nature. We not only have forests but also over 300 lakes within our city limits! We have 70,000 inhabitants and are close to the population centres of southern Finland; so in many ways we combine the advantages of urban and country life.

We have a diversified economy that includes agriculture, traditional industry and new innovative sectors. Many people commute to or from neighbouring areas to work, making traffic and railroad networks very important. So, between the nature, a diverse economy and logistical challenges, we face many environmental issues.

What are you doing for the environment in the city of Hämeenlinna?

Because of our situation we have been taking a wide range of environmental actions. We had already been taking steps to reduce our footprint in the previous years, but at the beginning of 2020 we created the city’s programme to become carbon-neutral.

Heating for example represents 40% of our emissions. Earlier this year we changed the district heating system, which is very popular, so that 95% of the heat comes from renewables, mainly from biomass such as wood. We also have a local company which is making biofuel from waste.

We all have an impact on the environment in some way. But how can local governments engage people to become part of the solution?

I am a strong believer in cocreation with companies and citizens. That’s how we developed our carbon-neutral programme. For example, our city the steel company SSAB has a big plant in our city which plans to become carbon-neutral by 2027. No one can achieve the green transition alone. It’s through such cooperation that we be able to reduce the emissions from heating, traffic and industry.

In addition to action by the municipality and companies, the third big thing is to get people involved to make sustainable choices. We have an old saying in Hämeenlinna: “The big things are small, and the small things are big.” Small actions can have a big impact. That’s why we are working with kids, educating them about the UN Sustainable Development Goals (SDGs) and we can each live more sustainably.

Hämeenlinna has always been a city where people want to do their share but are also very independent-minded. That’s why raising awareness is so important and can have such a big impact.

Hämeenlinna was one of the first 50 cities to sign the Green City Accord, an EU initiative in which cities commit to taking action to become cleaner, healthier and more sustainable. Why did you sign the Green City Accord and what is the added value for cities?

There are several advantages to working with the Green City Accord. First, it’s a way to combine all the big and small things we are already planning on environment into one coherent package.

Second, it’s a way for us to build a community with other cities, compare what each of us has done and learn from each other. It’s important to understand the similarities at European level but also what is different and why things aren’t done the same way everywhere. And it’s important to stress European cooperation.

Third, it’s great to highlight each city’s actions on environment as something people can be proud of. Particularly in these times of isolation with corona, it’s important for people to be proud of their home city and what we achieve together.

The European institutions are passing a huge range of measures as part of the Green Deal, including on climate, energy, transport… What’s your local perspective on these kinds of measures?

The most important thing is that we cannot do these big changes only at one level. National governments and the EU do the legislation but the implementation is local, as are the innovations. That’s not only local governments, but also companies, NGOs and the people. That’s why it’s so important that cities are involved. Cities are the glue that combine all these stakeholders. Cocreation is key here.

In general, European and national legislation should be more about the goals and be less specific about how we achieve them. Local conditions vary a lot and we don’t always know yet what are the best ways of achieving these goals. I hope being goal-oriented will be the new normal in public policy by 2030. This changes the whole system towards more strategic work.

What challenges do you face regarding water management? Do you think the European legislative framework is fit for purpose for local and regional governments?

In Finland, wastewater management is in a very good position. The biggest water issue is the Baltic Sea and the pollution there. In the Committee of the Regions, I started the Baltic Sea Interregional Group as chairperson with members from all states around the Baltic.

Our slogan: “Make the Baltic Sea the first plastic-free sea!” Plastic is a terrible symbol of pollution and the idea of eliminating it from our seas inspires me a lot. And that is something that no country or administration can do on its own! Innovations are crucial here, to collect plastic from the seas, reform our waste system and produce substitutes for plastic.

Finland is one of the few EU countries in which local and regional governments were consulted in the design of their national recovery plan. What kinds of projects did cities and regions propose to further the green transition?

There are 18 regions in Finland and each has done their recovery plan, which were then combined into a national plan. This process has worked well. We are funding a wide variety of measures for railroads new industries, agriculture and digitalisation, which will also have a positive environmental impact.

I am really happy that the recovery package is so strongly intertwined with the Green Deal. We have to stick to that and not let countries do too little or choose the easy way out. What worries me a bit now is actually getting started. How long will it take to actually disburse the funding and materialise the projects?

The recovery plan is a great example of how we can work together to achieve great things. As individual cities and countries, we are too small by ourselves. But together as Europe, we can change how the world flows!

Connecting Nature Enterprise 

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As the world looks to build back better after the pandemic, innovators are leading to the way towards sustainable business models inspired by nature. That’s why the city of Poznan is hosting the Connecting Nature Enterprise Summit, an online event bringing together mayors, business leaders and policymakers from across Europe, with the support of the European Commission.

The summit will explore the challenges and opportunities of embracing nature-based solutions. Hosted on a virtual platform with panel discussions, presentations, workshops, capacity building sessions and plenty of opportunity to connect with other participants. Get inspired, naturally!

Dates: 29-30 June 2021
Website and programme
Registration
Languages: English and Polish