Climate: the return of the United States

On the agenda of our climate-transition newsletter this week: the highlights of the climate summit initiated by the United States, mandatory eco-driving training and the expansion of the scope of the European carbon market.

Climate summit initiated by the United States: the main announcements

Objectives revised up: As expected, American President Joe Biden has relaunched the United States in the race against climate change by making a commitment to reduce GHG emissions by 50% by 2030, compared to the 1990 level.

This summit was also an opportunity for other states to revise their climate ambitions upward, such as for Canada and Japan, which significantly strengthened their goals to reduce their emissions (raised to 40/ 45% and 45% respectively, and 45%, by 2030).

To achieve these new goals, the United States will be able to count on the support of major American banks, which have announced nearly USD 5 trillion in green investments by 2030.

Hopes for better protection of the Amazon: American efforts have also borne fruit when it comes to the Amazon rainforest, which is experiencing a record rate of deforestation under the rule of President Jair Bolsonaro. Thus, between August 2019 and July 2020, the equivalent of the area of Jamaica was destroyed. As proof of his good intentions, the Brazilian President has therefore promised to end the illegal deforestation of the Amazon by 2030.

Climate and Resilience Law: all trained in eco-driving?

We told you about it last week, the Climate and Resilience Law was voted on in the National Assembly and we identified an amendment that made less noise than others (such as the ban on domestic flights in the event of an alternative lasting less than 2.5 hours): the introduction of an obligation to train in eco-driving. Private companies with more than 100 vehicles and public establishments with more than 20 vehicles are affected. Training in eco-driving is therefore becoming mandatory, as is training in the use of plug-in hybrid vehicles in electric mode for the new owners of these vehicles.

As a reminder, a person trained in eco-driving can reduce their fuel consumption by up to 20%, and reduce their GHG emissions by the same amount. The benefits are therefore economic and climatic.

Do not hesitate to contact us to find out more, we will put you in touch with our privileged partner who is an expert in eco-driving training.

Transport and buildings integrated into the European carbon market

We were talking to you about it in recent weeks, the European Commission should present its proposals in June to strengthen mechanisms promoting the reduction of GHG emissions. Expectations include a strengthening of the emissions trading system, the regulated carbon market (ETS), or EU Emissions Trading System) and on the possible establishment of a carbon tax at the borders of the European Union.

In this context, the President of the European Commission, Ursula Von der Leyen, gave us an overview of the June announcements last week, saying that the transport and building sectors will also be covered by an emissions trading mechanism.

As a reminder, at this stage, the European carbon market mainly applies to energy production sectors and activities that are very energy-intensive, and therefore generally very emitters of GHGs. These include refineries, steel mills or aluminum production, cement factories or even certain activities in the chemical sector.

Finally, it is not yet clear whether transport and buildings would be included in the current system (ETS) or whether they would be covered by a new mechanism, which would remain to be defined.

Bonus

Bonus: The year 2020 is ranked among the three hottest years on record, according to the World Meteorological Organization (WMO), which also considers the decade 2011-2020 to be the warmest on record. The WMO study is mainly based on 5 international data sets, including data from NASA (the American Space Agency) or the European Center for Medium-Range Weather Forecasts (ECMWF) and its Copernicus agency. According to Copernicus data, 2020 is even the hottest year on record (on par with 2016) and the global average temperature was 1.25°C warmer than the average of the pre-industrial 1850-1900* era.