The Governance Regulation is an opportunity to support increasing climate ambition and a faster energy transition in Europe.
The governance regulation brings together climate energy policies and aims at managing the lowcarbon transition as a whole. This policy centralization is the opportunity to support increasing climate ambition, green growth and a faster energy transition in Europe. If the legislation is done right, the framework can significantly contribute to implementing the EU’s fair share to achieve the long term objectives of the Paris Agreement. It can also help unlocking investor confidence and reduce transition costs while reducing the risks of stranded assets across the European economy. Reaping these benefits would however require a significant strengthening of the Commission’s’ proposal in three key areas:
• a robust mechanism for ratcheting up ambition over time
• a better alignment of the National Energy and Climate Plans with the long term low emission strategies, as required by the Paris Agreement, to ensure a fully integrated approach to infrastructure planning
• stricter provisions to ensure targets are achieved