WHY IN NEWS?
Recently, the European Union (EU) released a new climate proposal, the Fit for 55 packages.
- The EU in December 2020 submitted a revised Nationally Determined Contribution (NDC) under the Paris Agreement.
- The new package attempts to deliver the NDC and carbon neutrality goal through proposed changes that would impact the economy, society and industry, as well as ensure a fair, competitive and green transition by 2030 and beyond.
- Climate neutrality is achieved when a country’s emissions are balanced by absorptions and removal of greenhouse gases from the atmosphere. It is also expressed as a state of net-zero emissions.
- It claims to achieve a balance between “regulatory policies” and market-based carbon pricing to avoid the pitfalls of each