The European Parliament on Tuesday adopted three climate laws that lie at the heart of the EU's policy of slashing greenhouse emissions by at least 55 percent by the year 2030.
The legislation changes the rules on the bloc's carbon market, establishes a carbon border tax on imports, and creates a Social Climate Fund.
The revisions come after two years of talks between the parliament, the EU Council and the European Commission.
"With today's votes, we reach another milestone," European Commission chief Ursula von der Leyen tweeted.
She urged EU member states to give final approval to the laws so they can come into effect
"We have now finally agreed on the holy trinity," said MEP for the conservative European People's Party (EPP) Peter Liese following the vote in Strasbourg.
"Everybody will benefit from this."
2 years ago we presented the laws to deliver the #EUGreenDeal
— Ursula von der Leyen (@vonderleyen) April 18, 2023
With today’s votes, we reach another milestone.
I want to thank @Europarl_EN for its support, and call on Member States to now take the final steps.
Together, we will make Europe the first climate neutral continent.
The EU is the third biggest global emitter of carbon dioxide.
The vote crystallises an ambitious EU plan to reform Europe's carbon market by broadening an emissions trading scheme to more industries and lowering quotas of allowable polluting gases.
Emission Trading System
The first law adopted was the updated version of the Emission Trading System on industry, increasing industry emission-reduction targets to 62 percent by 2030.
"This law is as much about energy security as the energy transition," parliament president Roberta Metsola said, when explaining the need to increase the target.
"We're not going green for the sake of going green. The more incentive we give to go green, the more independent we will be."
Carbon border tax
A carbon border levy directed at goods coming into Europe was also adopted by a broad majority.
While still intent on pursuing its green transition, the EU will levy the carbon tax on imports to ensure its industries are not undercut by companies outside the bloc not facing the same costs.
Technically called an "adjustment" rather than a tax, this measure requires importers into the EU whose products exceed the bloc's carbon norms to buy an "emission certificate".
It will apply to imported steel, fertiliser, aluminium, cement, electricity generation and hydrogen.
Finally, lawmakers also agreed to set up a Social Climate Fund, which will come into effect in 2026.
A total of €86.7 billion in funding will be available to support vulnerable European households, micro-enterprises, and transport users particularly affected by the climate transition and rising energy costs.
