European Green Deal: EU reaches agreement on national emission reductions from transport, buildings, waste and agriculture

The European Commission welcomes the provisional agreement reached last night with the European Parliament and Council to increase the ambition of the EU’s Effort Sharing Regulation (ESR). This agreement establishes binding annual greenhouse gas emission targets for Member States in sectors not currently included in the EU Emissions Trading System (EU ETS). The agreement importantly maintains the Commission’s proposal to boost the emission reduction target for these sectors from 29% to 40% by 2030, compared to 2005 levels.

The updated emission reduction targets for Member States range from -10% to -50% compared to 2005, and will result in a further convergence of Member States’ emissions per capita in 2030. The sectors covered by the ESR include building, agriculture, waste, small industry, and transport. Examples of potential measures that Member States can take to reduce emissions and achieve their targets include: promoting public transport; retrofitting buildings; more efficient heating and cooling systems; and more climate-friendly agricultural practices.

This agreement is the latest step in the adoption of the Commission’s ‘Fit for 55′ legislative package to deliver the European Green Deal, following the recent deal to end the sale of new CO2 emitting cars in Europe by 2035. With COP27 in full swing, it again shows that the EU is delivering on its climate commitments, moving from ambition to action. Against the backdrop of Russia’s war of aggression in Ukraine it also shows that the EU is not backtracking on its green transition, but is rather accelerating efforts to become the world’s first climate neutral continent by 2050.

Next steps

Today’s provisional agreement now requires formal adoption by the Parliament and the Council. Once this process is completed, the new legislation will be published in the Official Journal of the Union and enter into force.

Background

The European Green Deal is the EU’s long-term growth strategy to make Europe climate-neutral by 2050. The revision of the Effort Sharing Regulation is one of the ‘Fit for 55′ proposals presented by the Commission in July 2021 to make the EU’s climate, energy, land use, transport and taxation policies fit for reducing net greenhouse gas emissions by at least 55% by 2030, compared to 1990 levels. Achieving these emission reductions in the next decade is crucial to Europe becoming the world’s first climate neutral continent by 2050 and making the European Green Deal a reality. The legislative tools are set to deliver on the targets agreed in the European Climate Law and fundamentally transform our economy and society for a fair, green and prosperous future.