New effort sharing regulation on distribution of EU 2030 climate target among member states
The EU and its member states are making progress on the implementation of the Paris Agreement. By 2030, CO2 emissions are to be reduced by at least 40 percent compared to 1990. The first stage of implementation involved reforming the emissions trading scheme (ETS) for industry and the energy sector. The second stage is the distribution of the target across the individual member states for the buildings, transport and agriculture sectors, which are not covered by ETS. Today in the Permanent Representatives Committee, the EU member states reached a compromise with the European Parliament on the proposed effort sharing regulation for the second stage.
Federal Environment Minister Barbara Hendricks: "Europe is moving ahead with the implementation of the Paris Agreement. This tool will ensure that all EU member states make a contribution to climate action. Germany must also now do its homework. To achieve our 2030 EU climate target we will need additional measures, especially in the transport, buildings and agriculture sectors."
The new regulation lays down a target for Germany of a 38 percent reduction in CO2 emissions in the buildings, transport and agriculture sectors by 2030 compared to 2005. This target is not directly comparable with the overall European target of 40 percent compared to 1990 as the reference years are different and these sectors only account for half of Germany's emissions. The German target fundamentally corresponds to the requirements of the Climate Action Plan 2050, which envisages a reduction target of 55 percent by 2030 compared to 1990.
Under the effort sharing regulation, a binding climate target trajectory will be set out for each member state that will culminate in their national 2030 target. The national targets are based primarily on Gross Domestic Product (GDP) per capita: the member state with the lowest GDP per capita (Bulgaria) must stabilise emissions compared to 2005 levels (zero percent), the richest member states (Luxembourg and Sweden) must reduce emissions by 40 percent by 2030 compared to 2005 levels. In fulfilling their targets, each member state will be able to utilise various flexibilities, for example purchasing surplus allowances from other member states or using, to a limited extent, carbon credits from the land use sector. During negotiations, Germany advocated for these flexibilities to be structured in a way that will not undermine achievement of the EU 2030 climate target.
The European Parliament will make a decision on the regulation on 24 January 2018. Following this, the outcome must be formally approved by the EU Council of Ministers.