ESG Post

Regulators

Environmental groups sue EU over emissions rules, green labels for planes

Environmental campaigners have taken legal action against the European Commission, aiming to compel Brussels to strengthen its 2030 emissions regulations and, in a separate case, to overturn rules that categorise certain airplanes as climate-friendly investments.

In the case presented to the General Court of the European Union’s Court of Justice, non-profit organisations Climate Action Network and the Global Legal Action Network contended that national greenhouse gas emission limits for sectors such as transport and agriculture are unlawful. The campaigners argued that these thresholds fall short of reducing Europe’s emissions quickly enough to meet the Paris Agreement’s target of limiting global warming to 1.5 degrees Celsius (2.7 degrees Fahrenheit) above pre-industrial levels.

The current limits, which mandate EU member states to cut emissions in these sectors by 10% to 50% from 2005 levels, contribute to the EU’s broader goal of reducing net emissions by 55% by 2030, relative to 1990 levels.

Scientists have stated that global emissions must be halved by 2030 to have a chance of keeping warming to 1.5C, with campaigners arguing that the EU, as a wealthy and historically significant polluter, should be accelerating its efforts.

The court has granted priority status to the case, potentially allowing it to be heard by 2025.

In a second case filed on Tuesday, five campaign groups are challenging the EU’s inclusion of aviation in its “taxonomy,” a list that designates certain investments as green and thus eligible for green finance from investors and banks. The EU’s policy labels investments in new, more fuel-efficient planes as climate-positive, arguing that these planes will replace older, dirtier models and reduce emissions until zero-emission aircraft become available.

The policy also provides a green label for ships that operate on liquefied natural gas (LNG), a fossil fuel that, while less CO2-intensive than oil, still produces CO2 emissions and is linked to methane emissions, a potent greenhouse gas. Campaigners have accused the EU of “greenwashing” by classifying fossil-fuel-powered planes and ships as climate-friendly.

“The aviation and shipping criteria send completely the wrong signal to investors,” said David Kay, legal director at Opportunity Green, one of the groups bringing the lawsuit.