European Green Deal and the Fit for 55 Package explained for EV drivers

Electric cars are not only changing how we move from one place to another but are also playing a critical role in the global fight against climate change. They are a key driver behind governments' efforts to meet long-term environmental goals. Europe, for instance, aims to become the first climate-neutral continent by 2050, a goal formalized in 2019 through the European Green Deal.

In that same year, our research revealed that while 60% of people felt reducing CO2 emissions was personally important, only 10% were familiar with the European Green Deal. Since then, significant progress has been made, and new developments are continuously emerging. However, with so much happening at once, it can be hard to keep up. This article aims to provide clarity on the current status of the EU Green Deal, the Fit for 55 Package, and what these policies mean for EV drivers.

Table of contents

• Climate change
• Transport emissions
• What is the European Green Deal?
• What is Fit for 55?
• The Fit for 55 Package
• The Fit for 55 Package and electric mobility
• The legislative process
• What are the implications of the Fit for 55 Package for EV drivers?

Climate change

Before diving into EU legislation, it's essential to understand why addressing climate change is crucial. The accumulation of greenhouse gases in the atmosphere—often from burning fossil fuels—leads to global warming and environmental impacts. Rapidly cutting these emissions can help prevent dangerous climate change.

Transport emissions

According to the IEA, transportation accounts for 24% of direct CO2 emissions from fuel combustion, and this share has been increasing by 1.9% annually since 2000. Governments globally are implementing policies like zero-emission vehicle mandates and emissions standards to curb this trend. In 2019, transport emissions rose by just 0.5%, partly due to the shift toward electric vehicles.

What is the European Green Deal?

The European Green Deal, announced in 2019, was described as “Europe’s man on the moon moment” by President Ursula von der Leyen. It marked a historic commitment to combat climate change, with a net-zero emissions target by 2050. The deal laid out a comprehensive plan to make the EU climate-neutral and included measures to accelerate EV adoption.

55 percent net emission reduction in 2030

To achieve the 2050 goal, the EU set an intermediate target of a 55% net emission reduction by 2030. This led to the development of the "Fit for 55 Package," which includes various policy initiatives aimed at meeting this target.

What is Fit for 55?

Think of the EU Green Deal as the overall strategy for achieving climate neutrality by 2050. Fit for 55 is a set of proposals designed to ensure this vision becomes reality. As EU Green Deal chief Frans Timmermans said, “We have to shift the whole of our economy into a higher gear.” Fit for 55 aims to align EU laws with its ambitious climate goals.

The Fit for 55 Package

The Fit for 55 Package consists of two parts. The first part, containing 13 legislative proposals, was published in July 2021, with the second part scheduled for release in December 2021.

Part 1 of the Fit for 55 Package (July 2021)

Revisions to and amendments of existing EU laws

Revisions

• EU Emissions Trading System (EU ETS)
• Land Use, Land-Use Change, and Forestry (LULUCF)
• Effort Sharing Regulation (ESR)
• Energy Taxation Directive
• Alternative Fuels Infrastructure Directive (AFID)

Amendments

• Renewable Energy Directive (RED)
• Energy Efficiency Directive (EED)
• CO2 Emission Standards for Cars and Vans

New legislative proposals

• New EU Forest Strategy
• Carbon Border Adjustment Mechanism (CBAM)
• Climate Action Social Facility
• ReFuelEU Aviation – on sustainable aviation fuels
• FuelEU Maritime – on greening Europe’s maritime space

The Fit for 55 Package and electric mobility

The Fit for 55 Package outlines ambitious plans to reduce emissions across all sectors, including transport. While it affects many areas, this article focuses on its impact on electric mobility. One of the main goals is to reduce road transport emissions, which account for a large portion of total transport emissions.

Reducing emissions from road transport

As per the European Environment Agency, road transport emits 72% of all transport-related GHG. The Fit for 55 Package emphasizes electric mobility as a key solution, aiming to:

• Accelerate charging infrastructure rollout
• Make electric driving more accessible
• Establish a clear phase-out date for fossil fuels

Charging infrastructure

The Alternative Fuels Infrastructure Regulation revises the 2014 directive, setting binding targets for EV charging infrastructure and improving user-friendliness. This will support the transition to electric vehicles and enhance the driving experience.

Renewable electricity

The Renewable Energy Directive sets a 40% renewable energy target by 2030 and introduces smart charging and V2G requirements for private EV stations. This promotes the use of clean energy in transport.

CO2 emission standards for new vehicles

The CO2 emission performance standards for cars and vans Regulation proposes a full phase-out of internal combustion engines by 2035, with 100% emission reductions for new vehicles. This sets a strong foundation for a cleaner future.

The legislative process

The Fit for 55 Package must go through the EU legislative process before becoming law. Both the European Parliament and the Council of the European Union will review the proposals, and once an agreement is reached, they will be adopted as law. The second part of the package is expected to be released in December 2021.

When will the Fit for 55 Package be fully implemented?

We can expect all proposals to be adopted as laws by the end of 2022. A tentative timeline shows the process will likely conclude around that time.

What are the implications of the Fit for 55 Package for EV drivers?

Now that we’ve covered the big picture, let’s look at what this means for you. The clear phase-out date for ICE cars provides clarity and motivation for the automotive industry to accelerate electrification. This will encourage more drivers to switch to electric vehicles.

Legal framework for recharging infrastructure

The revised Alternative Fuels Directive becomes a Regulation, ensuring common rules and technical specifications across the EU. This will lead to a better, more consistent charging experience for drivers.

Increased and better quality charging infrastructure

The package sets minimum targets for EV charging infrastructure, ensuring that public charging networks meet drivers’ needs. This includes national policy frameworks to guide the development of charging stations across the EU.

A step forward in truck electrification

By 2025, EV drivers should find recharging points every 60km along highways. This supports the growth of e-trucking and ensures seamless cross-border travel.

Easier international travel

With recharging points installed every 60km, even across borders, EV drivers will enjoy greater convenience and connectivity throughout the EU.

An improved user experience

The package includes provisions for better price transparency, compatibility labeling, and payment systems. These changes aim to make EV driving more convenient and user-friendly.

Smarter Charging

All publicly accessible chargers will be digitally connected and smart-charging capable, enhancing energy efficiency and the overall user experience.

In conclusion, as the Fit for 55 Package moves forward, more drivers across Europe will embrace electric mobility. With government support and a shared vision for a sustainable future, the transition to electric vehicles is accelerating. The Fit for 55 Package is a crucial step in making this vision a reality.