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The European
Parliament (EP) in Strasbourg gave approval of three key formations of “Climate
Law” which aims at reducing greenhouse gas emissions by 55 percent till 2030.
The approval includes an update
emissions-trading system, a carbon border levy on imported goods and an 87
billion Euro ($95 Billion Approximately) Social Fund, reported by EU Observer.
The move is said to be a major
step toward the European Union's wider goal of climate neutrality by 2050.
This shows a greater climate
commitment and resilience by European Union towards goals like climate control,
reduction of carbon emissions, development of climate policy and allocation of
resources for this purpose.
It is also considered to be the
major step towards the European Union’s goal of climate neutrality by 2050.
"Everybody will benefit
from this." A
lawmaker, Peter Liese told the EU Observer, following the vote in Strasbourg,
on Tuesday.
The major outcome of the
legislation passed included the formation of Carbon Border Adjustment
Mechanism, or CBAM. It aims at reduction of carbon emission, carbon leakage
resulting from global trade emanating from emissions-intensive goods. It
further adds certain following points:
a. CBAM would allow governments to levy a tax
on imported goods from countries that do not have similar emissions reduction
plans in place.
b. The revenue generated from these taxes
would then be utilized to support domestic emissions reduction initiatives.
c. The tax will also be applied to products
such as imported metal, fertilizer, aluminum, cement, electrical energy
technology and hydrogen etc.
The Social
Climate Fund would be established as per legislative approval that will provide
financial support to individuals and small companies of European Union’s member
states. This will be helpful in transition to green economy.
Another update in Climate Law
is the establishment of Emissions Trading System, a policy tool that allows
governments to set a cap on the total amount of greenhouse gases that can be
emitted by industry.
The lawmaker at the end
appreciated the effort and termed it a game-changer. The rest of the world is
required to follow the footsteps to fight climate change collectively. (Courtesy:
China Daily)
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