The EU last month enshrined in law its target to reduce emissions by 55% by 2030, compared with 1990 levels, but on Wednesday unveiled the aggressive 10-step program, titled"Fit for 55," which is a roadmap for how it will achieve its reduction.
The plan is also unlikely to be implemented in the way that von der Leyen and her fellow commissioners have envisioned. First, it must go through the EU's exhaustive legislative process. It will need to be read, amended and approved by both lawmakers in the EU Parliament and the EU Council, the forum in which the elected leaders of each member state debate such matters.
It will also be politically difficult, as member states are currently divided on many other pan-European issues -- from rule of law to human rights -- and will likely use this debate on climate change as a proxy for other ongoing rows.The proposed carbon border will place tariffs on certain goods produced outside the bloc, depending on their carbon footprint, subjecting them to the same standards that already exist for good produced within the EU.
Another key pillar of Wednesday's package is a lowering of the cap in the EU Emissions Trading System , the world's first and largest carbon market. Created in 2005, the ETS works by placing a cap on the carbon emissions companies within the EU are allowed to produce each year. If a company goes over, they are fined. They can also buy"allowances" from others in the ETS, roll over unused allowances. Over time, the cap set by the ETS goes down across the entire carbon market.