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European Commission: Effort Sharing Regulation (2021-2030)

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European Commission: Effort Sharing Regulation (2021-2030)

Shutterstock / Tatiana Grozetskaya

Proposal for a Regulation of the European Parliament and the Council on binding annual GHG emission reductions by Member States from 2021 to 2030 for a resilient Energy Union and to meet commitments under the Paris Agreement and amending Regulation No 525/2013 of the European Parliament and the Council on a mechanism for monitoring and reporting greenhouse gas emissions and other information relevant to climate change - COM(2016) 482 final

 

 

This legislative proposal by the European Commission sets out binding annual greenhouse gas (GHG) emission targets for Member States (MS) for the period 2021–2030. These targets cover sectors of the economy that fall outside the scope of the EU Emissions Trading System (EU ETS). These sectors, including transport, buildings, agriculture and waste management, account for almost 60% of total EU emissions. The proposal is the follow-up to the Effort Sharing Decision, which established national emissions targets for MS in the non-EU ETS sectors between 2013 and 2020. The proposal is based on the principles of fairness, solidarity, cost-effectiveness and environmental integrity.

 

The proposed Regulation maintains existing flexibilities (banking, borrowing, buying and selling) under the current Effort Sharing Decision and provides two new flexibilities to allow for a fair and cost-efficient achievement of the targets:

 

  • New one-off flexibility to access allowances from the EU ETS: This allows eligible MS to achieve their national targets by covering some emissions in the non-ETS sectors with EU ETS allowances which would normally have been auctioned.
  • New flexibility to access credits from the land use sector: In order to stimulate additional action in the land use sector, the proposal permits up to 280 million tonnes CO₂ to be credited from certain land categories to be used for national targets over the entire period 2021-2030.

The Commission will evaluate and report annually on progress towards achieving the targets. If any MS is not on track, they will be required to make an appropriate action plan. To reduce administrative burden and allow for the potential contribution from land use, a comprehensive review of MS' GHG emissions reports and a more formal compliance check will be organised every 5 years. This closely aligns the proposal with the 5-year review cycle set out in the Paris Agreement on climate change and is in line with the Commission commitment to Better Regulation.

 

The proposal is accompanied by a Factsheet and an Impact Assessment.

To download the proposal, please visit the relevant EUR-Lex webpage at the link below.