With Brexit out of the way, Green will be the buzzword of the year in Brussels. Under the EU’s massive economic recovery program, more than 500 billion euros will start flowing to help the region clean up its energy, industry, transport and farming sectors. The Green Deal, a central pillar of the recovery plan, will be turned into legislation, making irreversible Europe’s ambitious target to become the world’s first climate-neutral continent by 2050. And it will pave the way for a swathe of regulations that will make business and everyday life greener in all areas. Below, we take a closer look at what’s in store over the next few months.

What to Expect This Year
Climate Law | EU governments and the European Parliament are set to agree on the final shape of legislation that will not only make binding the net-zero emissions goal for 2050, but also toughen the 2030 pollution-reduction target of at least 55% from 1990 levels. A deal on the law is a priority for Portugal, which took over the bloc’s rotating presidency from Germany at the turn of the year.

Fit for 55 | Once the climate law is in place, the European Commission will propose a huge overhaul of rules across the economy to put the region on track to meet the 2030 emissions-reduction goal. The package, including rules to tighten the carbon market, boost the share of renewables in energy production and further cut vehicle emissions, will be unveiled in June. After that, negotiations begin in earnest and will last at least a year.

Pollution Price | The cost of emitting CO2 in Europe jumped to a record of 35.2 euros per metric ton earlier on Friday and is expected to break new highs as the bloc gives more teeth to its Emissions Trading System. The planned overhaul will further tighten the number of available permits and will expand the EU cap-and-trade carbon program to new sectors, notably maritime transport.

Carbon Levy | By putting a price on emissions embedded in certain imported goods, the Commission wants to kill two birds with one stone: ensuring a level playing field for European producers and spurring more climate action abroad. The idea of introducing the so-called Carbon Border Adjustment Mechanism has already triggered concerns from countries including Russia and China, but some economists say that it could lead to a transatlantic climate club if President-Elect Joe Biden opts to tax carbon at the U.S. border.

Cleaner Cars | The automotive industry faces stricter emissions standards for cars and new light commercial vehicles. Pollution from transport remains stubbornly high and the EU wants to slash it by discouraging combustion engines and promoting electric vehicles.

In Other News...
Merkel Succession | Angela Merkel has been a pillar of stability for the better part of two decades, but her CDU party is struggling with the power vacuum she’s leaving behind as it prepares for this weekend’s virtual leadership vote. With the campaign for September’s election heating up, Health Minister Jens Spahn said he’s out of the race for her succession.

French Polls | A majority of French lack confidence in the government’s ability to deal effectively with the pandemic or manage the vaccination campaign, even after President Emmanuel Macron accelerated efforts to distribute the shots, according to a survey in newspaper Journal du Dimanche. Macron and Prime Minister Jean Castex have come under fire for the slow start to vaccinations.

Accepting Brexit | Britain’s opposition leader, Keir Starmer, said there’s no case for the U.K. to seek to rejoin the EU and that his Labour Party won’t try to reintroduce the freedom of movement that was ended by Brexit. Starmer also reiterated his opposition to another referendum on Scottish independence, which is set to be a major theme in British politics this year as the country’s biggest parties try to arrest rising support for ending the three-centuries-old United Kingdom.

The Snow in Spain | Icy blasts are threatening to sweep across North America and Europe starting in late January. It’s all because of a weather phenomenon known as the polar vortex. Much of Spain is already looking like the North Pole.

Dutch Joints | In an effort to clean up its image, Amsterdam aims to restrict a key tourist attraction: its coffee shops. Only Dutch residents would be allowed to enter the cannabis-dealing outlets under a policy proposal, which could come into force as of next year.Annual averages of global air temperature at a height of two meters estimated change since the pre-industrial period (left-hand axis) and relative to 1981-2010 (right-hand axis) according to different datasets Credit: Copernicus Climate Change Service

Bloomberg

Another year of record-high heat punctuated a decade-long increase in global temperatures that has placed the Earth’s economies dangerously close to climate tipping points. Those are the conclusions published Friday by EU scientists.

Today’s Agenda
All times CET.

• 2 p.m. European Commission President von der Leyen, German Chancellor Merkel, French President Macron participate in One Planet Summit, via videoconference

• 4:45 p.m. European Parliament’s Economic and Monetary Affairs Committee holds exchange of views with members of the Commission’s Brexit task force