Fit for 55 — EU Green Deal and the Industrial Collapse of Europe

P 12.07.2021 U F. William Engdahl

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One of the rare honest statements by Bill Gates was his remark in early 2021 that if you think covid measures are bad, wait until the measures for global warming. The European Union is in the process of imposing, top-down, the most draconian measures to date, that will effectively destroy modern industry across the face of the 27 states of the European Union. Under cute names such as “Fit for 55” and European Green Deal, measures are being finalized in Brussels by unelected technocrats that will cause the worst industrial unemployment and economic collapse since the crisis of the 1930s. Industries such as automobile or transport, power generation and steel are on the chopping block, all for an unproven hypothesis called manmade global warming.

While most EU citizens have been distracted by endless restrictions over a flu-like pandemic called covid19, the technocrats at the EU Commission in Brussels have been preparing a program of planned dis-integration of the EU industrial economy. The convenient aspect of an unelected supranational group far away in Brussels or Strasbourg is that they are not accountable to any real voters. They even have a name for it: Democratic Deficit. If the measures about to be finalized by the EU Commission under German President Ursula von der Leyen and Vice President for Global Warming Dutch technocrat Frans Timmermans, are enacted, here is a hint of what will happen.

Fit for 55”

On July 14, the EU Commission presents its “Fit for 55” green agenda. While the title sounds more like an ad for a middle-ager health studio, it will be the most draconian and destructive de-industrialization program ever imposed outside of war.

Fit for 55 will be the central framework of new laws and rules from Brussels to reduce CO2 emissions dramatically, using schemes such as carbon taxes, emission caps and cap and trade schemes.

In April 2021 the EU Commission announced a new EU climate target: Emissions to be reduced by 55 percent by 2030 compared to 1990, up from the 40 percent as previously agreed. Hence the cute name “Fit for 55.” But the industry and workforce of the EU states will be anything but fit if the plan is advanced. Simply said, it is technocratic fascism being imposed without public debate on some 455 million EU citizens.

This Fit for 55 is the first time in the world that a group of countries, the EU, officially imposes an agenda to force an absurd “Zero” CO2 by 2050 and 55% less CO2 by 2030. EU Green Deal czar, Commissioner Frans Timmermans said in May, “We will strengthen the EU Emissions Trading System, update the Energy Taxation Directive, and propose new CO2 standards for cars, new energy efficiency standards for buildings, new targets for renewables, and new ways of supporting clean fuels and infrastructure for clean transport.” In reality it will destroy the transport industry, steel, cement as well as coal and gas fuel electric generation.

Here are major parts of the sinister Fit For 55.

Cars and Trucks

A major target of the EU Green Deal will be measures that will force internal combustion engine vehicles– gasoline or diesel cars and trucks—to adhere to such punitive CO2 emission limits that they will be forced off the roads by 2030 if not sooner. The plan will change the current target of a 37.5% reduction in vehicle CO2 emissions by 2030 to a rumored zero emissions by 2035.

On July 7 a coalition of trade unions, transport industry companies and suppliers including the European Trade Union Confederation and the European Automobile Manufacturers Association, wrote an urgent appeal to EU Green Czar Frans Timmermans. They stated, “…we want to see industrial transformation and innovation in Europe, rather than de-industrialisation and social disruption.” The letter pointed out that the EU has no plans for a so-called “Just Transition” for the EU auto industry including no new skills training for displaced workers: “Currently, there is no such framework for the 16 million workers in our mobility eco-system, and notably Europe’s automotive sector which is a powerhouse of industrial employment.”

This is no minor issue as the transition from internal combustion engine cars and trucks to E-autos will mean a huge unprecedented disruption to the present auto supplier chains. The letter points out that EU-wide, the auto sector has 8.5% of all European manufacturing jobs and in 2019 produced nearly 10% of GDP in Germany alone, along with 40% of the country’s research and development spending. The EU today makes up more than 50% of the world’s exports of auto products. They point out that the transition to zero CO2 vehicles will mean a loss of at least 2.4 million skilled, high-wage jobs across the EU. Entire regions will become depressed. The letter points out that Brussels has yet to even map the consequences for the auto sector of the Green Deal.

In April German EU Commission President Ursula von der Leyen indicated July Fit for 55 could extend a draconian carbon emissions trading scheme (ETS) from beyond power plants or industry to cover road transport and buildings in a “polluter pays” add on. The tie to the ETS will automatically force financial penalties on drivers or home owners beyond the present carbon taxes despite a very limited impact of some 3% on emissions. This, on top of tighter auto emission standards, will deal a killer blow to consumers and industry. When the French government imposed such a carbon tax in 2018 it triggered the Yellow Vests national protests and forced Paris to withdraw it.

Steel

The drastic EU plan contains new provisions that will mean drastic change for the energy-intensive EU steel and cement industries. Steel is the second biggest industry in the world after oil and gas. Currently the EU is the second largest producer of steel in the world after China. Its output is over 177 million tons of steel a year, or 11% of global output. But the Timmermans plan will introduce new measures that ostensibly penalize steel imports from “dirty” producers, but that in fact will make EU steel less competitive globally. Leaks of the EU plan indicate that they plan to eliminate current free ETS pollution permits for energy-intensive industries such as steel or cement. That will deal a devastating blow to both essential industries. They call it the Carbon Border Adjustment Mechanism. As the Center for European Policy Network points out, EU steel exporters will “not receive any compensation for the discontinuation of the free allocation. As a result, they suffer considerable competitive disadvantages compared to their competitors from third countries.“

Coal Carbon Taxes

The EU’s new 55% climate target for 2030 implies a near-complete coal phase-out by 2030 in the whole EU. This will hit Germany, far the largest EU coal power user. The German government, already with the world’s most expensive electric power owing to the Merkel Energiewende transition to unreliable solar and wind that will see the last nuclear power plant closed in 2022, has just recently dropped its plan to phase out coal by 2038. It will phase out far earlier, but for obvious political reasons in an election year, has not revealed its new “zero coal” date.

The absurdity of believing the EU, especially Germany, will be able to achieve zero coal by 2030, replacing not even with natural gas, but rather unreliable solar and wind, is already clear. On January 1, 2021 as part of the Government mandate on coal power reduction, 11 coal-fired power plants with a total capacity of 4.7 GW were shut down. That phase out lasted eight days as several of the coal power plants had to be reconnected to the grid to avoid blackouts due to a prolonged low-wind period. The shut coal plants were ordered to operate on reserve status at the cost of the consumers. The Berlin government commission that drafted the coal phase-out plan included no power industry representatives nor any power grid experts.

With the new element of the destructive EU Commission Fit for 55 plan, the heart of European industry, Germany, is pre-programmed not only for severe industrial unemployment in steel, cement and auto sectors. It is also pre-programmed for power blackouts such as that that devastated Texas in early 2021 when wind mills froze. In 2022 in Germany, as noted, the last nuclear plant along with other coal power will be closed, removing 3% of the power. An added 6,000 wind turbines also will exit due to age, for a total cut of 7%. Yet planned addition of new wind and solar doesn’t come close to replace that, so that by 2022 Germany could have a shortfall of between 10% and 15% in capacity on the generation side.

WEF Great Reset and EU Green Deal

The hard thing for ordinary sane citizens to grasp with this EU Fit for 55 and the Davos Great Reset or the related UN Agenda 2030 globally, is that it is all a deliberate technocratic plan for dis-integration of the economy, using the fraudulent excuse of an unproven global warming danger that claims– based on dodgy computer models that ignore influence of our sun on Earth climate cycles– that we will see catastrophe by 2030 if the world does not slash harmless and life-essential CO2 emissions.

The ever-active Davos World Economic Forum as part of its Great Reset is also playing a significant role in shaping the EU Commission’s Europe Green Deal. In January 2020, the World Economic Forum at its Annual Meeting in Davos brought together leaders from industry and business with Executive Vice-President Frans Timmermans to explore how to catalyze the European Green Deal. The July 14 unveiling by Brussels is the result. The WEF supports the CEO Action Group for the European Green Deal to get major corporations behind the Brussels dystopian plan

F. William Engdahl is strategic risk consultant and lecturer, he holds a degree in politics from Princeton University and is a best-selling author on oil and geopolitics, exclusively for the online magazine “New Eastern Outlook”.


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