What Are Absolute Thresholds and How Does Directive 2018/410 Apply Them to Address Climate Change?

What are absolute thresholds?

Imagine you have a bank account. An absolute threshold would be like a maximum limit you cannot exceed. In the case of greenhouse gas emissions, an absolute threshold is the maximum amount of emissions that a country, company, or sector can generate within a given period.

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How are absolute thresholds applied in Directive (EU) 2018/410?

This directive establishes that European Union countries must significantly reduce their greenhouse gas emissions. To achieve this, absolute thresholds can be set for different sectors such as industry, energy, or transport.

Practical example:

Let’s suppose an absolute threshold of 100 tons of CO2 is set for a steel factory in one year. This means that regardless of how much the factory produces, it cannot emit more than those 100 tons of CO2. If it wants to produce more, it must find ways to reduce its emissions, such as investing in cleaner technologies or improving energy efficiency.

How do absolute thresholds help fight climate change?

There are three ways in which setting absolute thresholds improves the fight against climate change:

1. They establish a clear and measurable target: By setting a maximum emissions limit, an incentive is created for companies and countries to invest in cleaner technologies and processes.
2. They promote innovation: To meet absolute thresholds, companies must seek innovative solutions to reduce emissions, which in turn can generate new jobs and business opportunities.
3. They ensure a constant reduction in emissions: By setting a maximum limit, it is guaranteed that emissions will not increase over time, which is essential to combat climate change.

Why are the measures of Directive (EU) 2018/410 important?

This directive sends a clear signal to companies and investors that the transition toward a green economy is inevitable.

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