AFEP supports the objective of climate neutrality by 2050 and the raising of the EU’s climate target by 2030.
As demonstrated by AFEP’s platform Ambition 4 Climate, French companies are engaged in the energy and climate transition. They therefore welcome the proposals in this package. They are particularly mindful that the proposed framework be able to trigger the unprecedented amount of investment needed for the transition, while maintaining economic activity within Europe.
In particular:
- AFEP supports the new approach regarding the Energy Taxation based on the energy content of products and insists on the need to: (i) maintain tax exonerations and reductions that are essential to preserve the competitivity of companies during their transition phase; (ii) enhance the predictability of the tax rates for green and low carbon energy beyond the transition period in order to trigger investments; and (iii) clarify the link with other proposals of the “Fit for 55” Package.
- AFEP welcomes the increase of the target to 40% of the share of renewables in the European energy mix. It also highlights the following points: (i) excessive additionality criteria could jeopardise the development of renewable hydrogen; (ii) the need to clarify the link between green and low-carbon hydrogen in the context of the “Gas Package” published at the end of 2021; (iii) the need for better support for the use of biogas and biofuels; and (iv) the need for a centralised and effective system of guarantees of origin.
- Concerning the Energy Efficiency Directive, the focus should be on improving energy intensity and not just reducing energy consumption, to avoid penalising growing industries.