The European Parliament normally has the image of trumping green proposals with even higher ambitions, but bizarre energy prices and skyrocketing inflation have put MPs on the brakes. They realize that citizens cannot tolerate any more tax increases.
Last summer, European Commissioner Frans Timmermans launched the mega-climate plan Fit for 55. The biggest pain point is the plan to make oil and gas producers pay for CO2 emission rights. Motorists are therefore saddled with a tax increase of 12 to 14 euro cents per liter at the pump, the Netherlands Environmental Assessment Agency expects in a calculation. Homeowners would have to deal with an increase of 10 euro cents per cubic meter of gas in 2030.
Exception for households
Very much against Timmermans’ wishes, a large majority of the European Parliament now wants to exempt households. “If people already have to pay 2.59 euros for a liter at the pump, then 5 euro cents from Europe is already too much to ask,” says CDA MEP and climate chief Esther de Lange. Although it is technically not possible to spare households and not companies, this would send the parliament an important signal towards the negotiations with Brussels and the member states.
For the time being, that signal is not yet coming. On Wednesday, in the midst of voting, there was a rare political scheming in Strasbourg. Normally, the Christian Democrats, Social Democrats and Liberals make a watertight agreement in the backroom. But despite months of negotiations, the unit was suddenly hard to find. A frontal attack on industry went too far for the right flank of parliament. In concrete terms, this concerns a left-wing proposal to accelerate the take away of free emission rights from, among other things, steel manufacturers. A majority voted against.
Crisis consultation on the climate plans
After minutes of crisis deliberations, the Social Democrats and Greens took emotional revenge by subsequently voting down the entire emissions plan. “Better no proposal than a bad proposal,” sneezes PvdA MEP and protagonist Mohammed Chahim. “That way we will not achieve the climate goals.” Parliament must now work on a new compromise. Because of the correlation, three climate dossiers by ‘their’ Timmermans are currently on hold: the CO2 border levy, the expansion of emission rights and the introduction of a climate fund.
It can be heard from all major political families that the idea of sparing households will remain intact. Parliament did vote on the future of new cars on Wednesday: from 2035 only zero-emission electric and hydrogen cars may be sold. There is good news for fans of heavy engine noise: Parliament wants an exception for the time being for small car manufacturers such as Lamborghini and Ferrari.
Chief negotiator and VVD MEP Jan Huitema expects this obligation for the car industry to help consumers: “The purchase price is often still too high at the moment. As a result of this legislation, the price for electric cars and hydrogen cars will fall and a second-hand market will open up faster.”
In Strasbourg, support was also expressed for the plan to allow airlines to buy CO2 emission rights for all flights from 2025. At the moment, a large part of those rights is still free. There is a good chance that the tax increase will be passed on through more expensive airline tickets.
Negotiations with the Member States and Brussels can only begin once the parliament has taken a position. If they then agree, the climate plans can be introduced.