In December 2021, the European Commission (the Commission) released a series of legislative proposals as a continuation to the “Fit for 55” package announced in July 2021. The proposals aim to pave the way towards renewable and low carbon fuels and create a market for hydrogen. The package also contains provisions related to methane emissions, providing for obligatory tracking and reduction of methane released into the atmosphere from the energy sector. Furthermore, the Commission set forth the principles around sustainable carbon cycles and for efficient and green mobility and introduced another proposal aiming to foster the decarbonization of the building sector.
The new measures are viewed as another milestone in delivering the goals of the European Green Deal. Ahead of implementation, the measures are expected to significantly accelerate business transformation toward sustainability in gas, agriculture and transportation sectors.