The 2020s will be a rollercoaster ride in terms of energy and climate legislation in Brussels, European Commission President Ursula von der Leyen made clear in the mission letters sent to her commissioner-delegates on Tuesday (17 September).

The mission letters von der Leyen sent to members of her likely future roster contain action plans based on promises made during her European Parliament address and compromises between the centrist political groups.

Regarding energy, von der Leyen made clear that she intends to pursue the EU decarbonisation push already embarked upon during her first mandate – and save the continent’s industrial heartlands and rebuild its energy systems in the process – which will affect few energy and climate stakeholders.

As expected, her commitment to climate action remains intact, but this time with a strong pro-business slant.

New commissioners will be expected to implement Green Deal rules from her first mandate, but as she said in her mission letter to climate commissioner-designate Wopke Hoekstra, implementation is to be done in the “simplest, fairest and most effective way.”

Her letter to Hoekstra also confirmed some rolling back with the letter stating the need to soften the de facto 2035 ban on combustion engine cars with a “targeted amendment” to allow more scope for such cars if they are fuelled with synthetic ‘e-fuels’.

Confirming push for 90% reduction plans

Another thing that was made clear in the mission statements – including the one for Spain’s Teresa Ribera, whom von der Leyen has appointed to the position of executive vice president for a clean, just and competitive transition – is that von der Leyen is sticking to the previously floated 90% carbon reduction target by 2040.

According to previously floated plans, von der Leyen plans to reduce carbon emissions by 90% relative to 1990 levels by 2040 – quite a step up from the 55% goal for 2030.

To reach the ambitious target, which still needs to be enshrined in law, Ribera and Hoekstra will have to start consulting on a legislative package for the “post-2030 framework”.

Electrification to do the heavy lifting

Under von der Leyen’s decarbonisation plans, electrification is set to do the heavy lifting.

Von der Leyen’s choice for the file, Danish socialist Dan Jørgensen, will have to develop a new initiative to boost the roll-out of renewable energy and energy storage, including a strategy to boost investment and an action plan for electricity, the mission letters state.

Jørgensen will also have to deliver on the expansion of the electricity grid and “look at” the regulatory framework to allow for faster permitting. He is also expected to promote the integration of energy systems, although no details are given on what this should entail.

Hoekstra and Jørgensen are tasked with phasing out fossil fuel subsidies, and Jørgensen with drawing up a roadmap for phasing out Russian energy imports.

Having sufficient energy in Europe is also of concern.

Jørgensen will have to review the EU’s security of supply framework, and French liberal Stéphane Séjourné, who will be executive vice-president for prosperity and industrial strategy, will focus on securing critical raw materials.

Industrial strategy to benefit several sectors

Von der Leyen’s letters also contain several ideas on how Europe can strengthen its cleantech industrial strategy, with several commissioners – Ribera and Séjourné in the driving seat and Hoekstra and Jørgensen in support – assigned to take up the challenge.

Much of what von der Leyen is proposing already exists or was outlined in the guidelines she presented for her new Commission in July, such as a law to accelerate industrial decarbonisation or revised procurement rules favouring EU products.

Several sectors stand to benefit.

Von der Leyen wants to see ‘small modular reactors’ in Europe by the 2030s and new markets for CO2 capture, transport and storage.

Whether her ambitions will come to fruition will depend on whether national governments can agree to boost the EU’s budget – either by common debt or greater contributions.

In what may be a fallback position, von der Leyen has also tasked Ribera with overhauling state aid rules.

Loosening the rules that control spending at the national level would ensure that more national money flows into decarbonised industry and manufacturing, even if the EU itself cannot do so.

Room for social justice?

While von der Leyen’s letters refer to the social impact of the green transition, in practice, the main focus is on keeping energy prices low. Ribera and Jørgensen are responsible for this and must also “propose further measures” to tackle energy poverty.

While Ribera has ‘Just Transition’ in her title, her responsibilities would focus on the EU’s already existing Social Climate and Just Transition Funds.

Still, if she passes MEP vetting, Ribera is expected to “work with other Members of College,” many of whom may not share her passion for social justice.

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