Effort Sharing Regulation

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Effort Sharing Regulation

The Effort Sharing Regulation sets national emission reduction targets for road transport, building heating, agriculture, small industrial plants and waste management.
These sectors, which were not previously included in the EU Emissions Trading System (EU ETS), currently account for around 60% of the EU’s greenhouse gas emissions- In order to achieve the EU’s overarching emissions reduction target by 2030, the Commission is now proposing to reduce emissions by at least 40% compared to 2005 levels as part of the Effort Sharing Regulation.

Objectives:

Reduction of greenhouse gas emissions Fair effort sharing between the member states

Sectors concerned:

Road transport & waste

Buildings

Agriculture & small businesses

Schedule:

By 2030

Reduction of greenhouse gas emissions in the affected sectors by 40%.

Each EU member state contributes to reducing emissions in the sectors concerned. In the new proposed regulation, new and binding targets are set for each member state by 2030. In addition, national annual emission limits will be set to gradually achieve the 2030 target.

In order to help the member states achieve their targets, there are so-called flexibility regulations:

Transmission: If a member state's emissions are below its annual ceiling, part of them can be counted towards the following year.

Anticipation: Anticipation: If a member state emits more emissions than it is entitled to in a given year, it can anticipate part of its quota for the following year.

Trading: Member states can sell and buy surplus allocations among themselves.

Further information:

[EUR-Lex] Effort Sharing Regulation
'Fit for 55': Reducing emissions from transport, buildings, agriculture and waste - Consilium (europa.eu)
Effort Sharing 2021-2030: Objectives and flexibilities - European Commission (europa.eu)