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The Fit for 55 package is a cornerstone of the European Green Deal, designed to cut the EU’s net greenhouse gas emissions by at least 55% compared to 1990 levels by 2030. It spans a broad range of policy measures targeting energy, transportation, industry, buildings, and more.
Throughout 2024, the EU made steady progress on several fronts, setting the stage for further action in 2025. This post takes a close look at the milestones achieved in 2024 and outlines the policy adjustments, regulatory updates, and sector-specific initiatives anticipated in 2025.
Understanding Fit for 55
Fit for 55 is not a single policy but rather a framework composed of multiple legislative proposals and reforms. These measures work together to reshape Europe’s economy, steering it toward a low-carbon future. Key elements include revamping the EU Emissions Trading System (ETS), introducing the Carbon Border Adjustment Mechanism (CBAM), tightening energy efficiency requirements, and accelerating the deployment of renewables.
By breaking down emissions sources and addressing each systematically, Fit for 55 provides a comprehensive blueprint for sustainable growth. It influences choices on energy sourcing, encourages innovation in industry, and supports cleaner mobility. Rather than relying on a single silver bullet, Fit for 55 brings together a variety of tools. This integrated approach ensures that both large and small actors in the European economy have clear signals and incentives to reduce their environmental impact.
Major 2024 Achievements
In 2024, the EU made headway in putting several Fit for 55 measures into action. These achievements reflect ongoing negotiations, legislative approvals, and initial implementation steps that will shape the coming years.
Policy Milestones Reached:
One of the most notable accomplishments was the agreement on revisions to the EU ETS, which aims to lower the overall emissions cap and phase out free allowances over time. Policymakers finalized details on the CBAM, offering clearer guidance on how carbon costs will be levied on certain imports. Additionally, work progressed on strengthening energy efficiency standards, ensuring that both public and private sectors align with the EU’s climate goals.
Energy Sector Progress:
The energy sector saw improvements in the integration of renewables into the European grid. Member States implemented projects aimed at expanding offshore wind capacity and refining grid infrastructure to manage intermittent supply. Early data from 2024 suggested greater uptake of green power purchase agreements and increased collaboration between states to ensure a stable, low-carbon energy supply.
Transportation and Mobility:
In the transport sector, the EU advanced plans to include maritime emissions in the ETS and took further steps to refine the application of emissions trading to aviation. Clearer targets were introduced for reducing average car and van emissions, and infrastructure for electric vehicle (EV) charging continued to expand. Pilot programs in several Member States tested hydrogen-powered trains and buses, indicating a willingness to embrace new technologies.
Buildings & Construction:
Building efficiency emerged as a significant focus in 2024. Updates to the Energy Performance of Buildings Directive (EPBD) encouraged deeper renovation efforts, pushing property owners to retrofit insulation, heating systems, and windows. Financial incentives played a role, with certain Member States rolling out grants or low-interest loans to accelerate improvements. This year also saw innovative pilot projects: some municipalities experimented with district heating networks powered by renewables, reducing the carbon intensity of this traditionally energy-intensive sector.
Member State Initiatives:
While the EU sets the framework, Member States drive implementation on the ground. In 2024, countries like Germany, Denmark, and the Netherlands launched their own initiatives to advance renewable energy adoption or improve industrial emissions monitoring. Central and Eastern European states started to explore low-carbon manufacturing hubs and invest in new storage technologies, ensuring that the transition supports economic growth as well as emissions reductions.
Impact Assessment of 2024 Developments
Environmental Impact:
Preliminary data suggested a modest decline in total emissions in sectors covered by EU climate policies. Renewables claimed a larger share of the energy mix, and efficiency gains reduced overall energy demand in several industries. Enhanced monitoring and stricter reporting provided more accurate emissions data, helping to identify where further improvements are needed.
Economic & Social Implications:
As green technologies moved further into the mainstream, job opportunities appeared in areas like renewable project development, energy auditing, and sustainable material production. However, some industries faced challenges in adapting to tighter regulations, particularly in sectors reliant on high-carbon inputs. Policy adjustments aimed at easing these transitions included worker retraining programs and targeted investment incentives.
Anticipating Changes in 2025
The coming year will build upon the foundations laid in 2024. While much was set in motion, 2025 will likely see new or amended legislation, more stringent targets, and greater integration of climate concerns into all levels of decision-making.
Pending Legislation and Revisions:
Several directives await final approval or revision in 2025. The ETS will continue evolving, potentially covering more sectors. The CBAM’s initial enforcement might begin, bringing clarity to industries importing goods into the EU. Energy efficiency targets could tighten further, prompting manufacturers, retailers, and service providers to rethink resource use.
Sector-Specific Outlooks:
Energy: Expect further measures to promote renewables, including more generous support schemes and upgraded permitting procedures for solar farms and wind turbines. Grid modernization efforts will continue, ensuring smoother integration of variable energy sources.
Transportation: The EU may finalize stricter emissions standards for new vehicles, pushing automakers toward zero-emission fleets. Infrastructure projects will likely emphasize EV charging stations along major freight corridors. Maritime and aviation sectors, already under scrutiny, may face additional requirements to source cleaner fuels and improve operational efficiency.
Buildings & Construction: In 2025, tougher building codes could come into play. These may mandate higher insulation standards or the adoption of smart energy management systems. Additional subsidies or financing tools may become available to accelerate renovations and lower the upfront costs of energy-efficient retrofits.
Technology and Innovation:
To reach Fit for 55’s ambitious goals, Europe needs continuous innovation. In 2025, carbon capture and storage (CCS) projects could gain traction, especially near industrial clusters looking to reduce emissions. Green hydrogen initiatives might expand, supported by pilot projects designed to explore its use in heavy industry and long-haul transportation. Circular economy practices, like recycled materials and extended product lifespans, may also become more prominent in regulatory frameworks.
Challenges and Opportunities Ahead
As Fit for 55 moves from concept to execution, the complexity of harmonizing policies across diverse economies remains a challenge. Different Member States have varying starting points, resources, and industrial profiles, making one-size-fits-all solutions difficult.
Regulatory Complexity: The EU must balance ambitious targets with practical measures that encourage compliance. Negotiations between the European Commission, Parliament, and Member States will continue, striving for policies that drive meaningful reductions without causing undue economic strain.
Market and Supply Chain Dynamics: As demand for raw materials in the renewable sector grows, securing stable and ethical supply chains remains critical. Battery production, for instance, depends on critical minerals. Ensuring their availability will require international cooperation, stable trade relations, and investment in recycling technologies.
Public and Corporate Engagement: The success of Fit for 55 depends on buy-in from multiple actors. Businesses must adapt their models, develop innovative products, and engage suppliers in reducing emissions. Meanwhile, the general public’s acceptance hinges on clear communication, transparent reporting, and visible benefits such as cleaner air, stable energy prices, and green job creation.
Conclusion
In 2024, the EU made tangible progress toward implementing its Fit for 55 roadmap. Key policy instruments were refined, and both public and private sectors took steps to lower emissions. As the region looks ahead to 2025, more rigorous targets and the introduction of new directives will further shape the path to a low-carbon future.
Change will not happen overnight, but the direction is clear: Europe is moving toward a more sustainable economy that values resource efficiency, innovation, and environmental integrity. Continued dialogue, technological advancement, and consistent policy updates will ensure that the EU remains on course to meet its ambitious climate objectives while maintaining competitiveness and social equity.
As the number of increasingly stringent ESG regulations from the EU continues to grow, companies are faced with the challenge of rethinking and adapting their business models, production processes, and strategies. Digital tools and platforms play a crucial role in helping businesses meet their ecological responsibilities while maintaining economic competitiveness. One such solution is the ESG Suite from SupplyOn.
SupplyOn is a global provider of web-based Supply Chain Management (SCM) solutions, connecting over 140,000 companies worldwide. In response to current challenges, SupplyOn has extended its solution offering with multiple ESG software modules under ESG Suite. SupplyOn’s shareholders include Bosch, Continental, ZF and Schäffler.
The ESG Suite: A Comprehensive Toolbox
The ESG Suite from SupplyOn offers companies a robust set of tools to address these challenges. It enables centralized management of sustainability data and the integration of ESG-related processes across the entire value chain. This allows companies to meet the required ESG standards, create transparency in the supply chain, and achieve their corporate ESG goals.
Designed for companies of all sizes, the ESG Suite ensures a compliant, transparent, and focused transition towards sustainability. Building on SupplyOn's existing network, the suite comprises three pillars: Human Rights Due Diligence (LkSG Risk Manager, CSDDD) and Carbon Management (CCF Calculator, CBAM Manager).
Human Rights Due Diligence: LkSG Risk Manager
The German Supply Chain Due Diligence Act (LkSG) aims to ensure that human rights and environmental standards are upheld in international supply chains. Implementing these requirements is complex, involving comprehensive risk analysis to identify specific requirements and the company's individual exposure. Risk mitigation measures must be developed and implemented, and their effectiveness must be monitored.
The LkSG Risk Manager from SupplyOn addresses these challenges by providing a tool tailored to the LkSG requirements. It helps companies achieve the necessary transparency and documentation, supports risk identification both internally and throughout the supply chain, and enables monitoring and reporting in accordance to legal requirements.
Key functionalities include supplier mapping, abstract risk analysis by country and product, concrete risk analysis for high-risk suppliers, implementation of preventative measures for prioritized high risks, remediation actions for identified risks, and the creation of BAFA reports within the tool.
Carbon Management: CCF Calculator
Understanding and managing a company's carbon footprint (CCF) is crucial for environmental impact assessment. The CCF includes both direct and indirect greenhouse gas emissions. Accurate calculation of the CCF helps organizations identify critical areas, set realistic reduction targets, and develop strategies to reduce their carbon footprint, in alignment with international standards like the Greenhouse Gas Protocol (GHG Protocol) and ISO 14064.
SupplyOn’s CCF Calculator enables companies to calculate, manage, and report their greenhouse gas emissions according to recognized standards. This tool simplifies the detailed CO2 analysis process, allowing companies to quantify and assess both direct and indirect emissions across all operational areas.
Automated reporting features facilitate compliance with disclosure requirements such as ESRS. The tool’s dashboard provide an overview of current and past carbon footprints and track progress toward achieving set targets. Collaborative functionalities support coherent and coordinated climate management efforts within the company.
Carbon Border Adjustment Mechanism: CBAM Manager
The Carbon Border Adjustment Mechanism (CBAM) is an EU regulation aimed at preventing carbon leakage by imposing a CO2 price on the import of certain emissions-intensive goods into the EU. Effective since October 1, 2023, CBAM initially mandates reporting obligations, with full implementation requiring companies to purchase CBAM certificates from 2026 onwards.
The CBAM Manager from SupplyOn automates data collection and consolidation from suppliers and production sites outside the EU, tracks CO2 prices paid abroad, and calculates remaining emissions to be priced. For reporting, the CBAM Manager generates an XML document that can be directly uploaded to the CBAM transitional registry.
SupplyOn's Holistic ESG Solution
SupplyOn's ESG Suite provides a holistic solution covering all relevant ESG application areas, ensuring compliance with dynamic regulatory and economic requirements. Future developments will further expand the suite to include additional regulations like the EU Forced Labor Ban, making ESG criteria an essential part of supply chain management.
SupplyOn offers webinarsand user training for its ESG tools, ensuring that both customers and their suppliers understand what data needs to be exchanged. Future plans include building extensive educational content and an ESG knowledge hub.
By preventing greenwashing through user-friendly tools, comprehensive educational materials, and rigorous validation processes, SupplyOn ensures that its solutions support genuine sustainability efforts. The suite’s integrability with various corporate systems and its capacity to centralize ESG data aim to eliminate fragmentation and provide a single source of ESG data for compliance and transparency.
Conclusion
SupplyOn's ESG Suite is designed to help companies navigate the complex landscape of ESG compliance. By leveraging digital tools for human rights due diligence, carbon management, and sustainability reporting, businesses can enhance their sustainability efforts, ensure regulatory compliance, and achieve their ESG goals with confidence and clarity.
But don't just take our word for it! Hear Dr. Thomas Schulte from Bosch, one of our esteemed customers speaking at the Automotive Decarbonization And Sustainability Summit about their journey towards sustainability with our solutions.
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