Posted on December, 02 2021

• Phase out fossil fuel subsidies by 2025, and all other environmentally harmful subsidies by 2027 at the latest: According to Commission research, fossil fuel subsidies in the EU amounted to 52 billion euros in 2020 alone, with no significant reduction in sight. Despite the European Parliament’s strong plenary position to put in place legally binding deadlines for both fossil fuel subsidies as well as other environmentally harmful subsidies, national governments and European Commission refused to accept any deadlines set through the 8EAP. The Parliament salvaged a compromise which now requires the EU to - sometime in the future - set a deadline for phasing out fossil fuel subsidies at Union and national level, “consistent with the ambition of limiting global warming to 1.5 degrees”. The text remains vague on when and how this will happen, but urgency will be needed now that consistency with the 1.5 degrees limit is required. In addition, the Commission is tasked to set out by 2023 a methodology to identify all other environmentally harmful subsidies, on the basis of which member states shall report their progress made on phasing them out, offering a chance to for the first time ever uncover the scale of the problem of subsidies to harmful activities such as unsustainable hydropower and industrial farming.
• Shift to a Wellbeing Economy by putting in place ‘Beyond GDP’ indicators, guided by public interests and not merely GDP growth: The deal calls on the Commission to identify how existing and often fragmented monitoring frameworks at EU level measuring social, economic and environmental progress can be streamlined into a single ‘Beyond GDP’ dashboard and indicator set, ultimately serving as a political summary to guide policy-making and provide for a clear and coherent overarching narrative. The agreement also calls for a shift towards a wellbeing economy within planetary boundaries and sets out the need for systemic change, “requiring major shifts and reorientation in systems goals, incentives, technologies, social practices and norms, as well as in knowledge systems, and governance approaches”.
• Strengthen the 8th EAP’s enabling conditions: The agreement calls for the the swift and full implementation of environmental law, consistency of all EU policies and measures with the objectives of the 8th EAP, as well as improvements to the ‘Better Regulation’ guidelines and toolbox to help guarantee transparent, inclusive and informed decision making. In future, impact assessments should for instance take into account the full range of impacts on the environment, including their cumulative effects as well as the cost of inaction. For the first time ever, the EU also recognises in a legal text the ‘think sustainability first’ approach, which requires the EU to actively consider how all policies - also those beyond the field of climate and environment - can contribute towards sustainability. With these changes, the enabling conditions have all been significantly improved in comparison to the weak initial Commission proposal.
• Political accountability and governance: Following the disappointing results of the 7th EAP, this iteration finally includes a governance system to ensure actions can be stepped up when results are lacking. Based on annual reporting on progress made towards the priority objectives and shift towards systemic change, the EU institutions will need to exchange views to take stock of progress and where needed identify and discuss further measures as part of the EU’s annual programming. Following on from a mid-term review due to take place in 2024, the incoming European Commission in 2025 will also be required to table a legislative proposal to present and agree with co-legislators the minimum of actions it will take to ensure the achievement by 2030 of the priority objectives of the 8EAP.