A 90% Reduction: Mission Impossible?

FETSA’s executive director Ravi Bhatiani explores the EU’s 2040 climate target and implications for the tank storage sector The European Commission has proposed an amendment to the EU Climate Law to insert a 90% greenhouse gas emissions target from 1990s level by 2040. For members of the Federation of European Tank Storage Associations (FETSA), understanding this framework is crucial, as it may dictate investment and strategic decisions for the coming years. The implementation of the proposal will continue the energy transition shift in the EU but does not take into account the strategic needs of Europe in terms of industrial competitiveness and military mobility, where existing fuel types are more prevalent. A 90% Target with Strategic Flexibility The European Commission’s proposal establishes a binding Union-wide target of a net 90% reduction in greenhouse gas emissions by 2040 compared to 1990 levels. This target is not defined as purely domestic. It opens the door for the use of high-quality international carbon credits under Article 6 of the Paris Agreement, capped at a maximum of 3% of 1990 emissions. This introduces a new element of flexibility and a potential new...