|Effort Sharing Decision|
|European Union Carbon Market Glossary|
Decision 406/2009/EC on the efort of Member States to reduce their greenhouse gas emissions to meet the Community's greenhouse gas emission reduction commitments up to 2020 (Effort Sharing Decision, ESD) sets greenhouse gas emission reduction targets for each European Union Member State for the sectors not covered by the EU Emissions Trading System.
Its scope currently covers some 55 % of total greenhouse gas emissions in the EU and includes greenhouse gas emissions from sources such as CO2 emissions from road transport, heating of buildings, small-scale industry and so-called non-CO2 emissions from agriculture and waste.
The Effort Sharing Decision does not include emissions or removals from land use, land-use change and forestry (LULUCF).
Each Member State has an emission reduction or limitation commitment for 2020 under this Decision which varies between -20% and +20% as compared to its 2005 GHG emissions.
Taken together, these commitments correspond to an EU-wide reduction in 2020 of around 10% compared to 2005 for the sectors covered by the Effort Sharing Decision.
The objective of the Effort Sharing Decision is to achieve its contribution to the EU's overall 20% reduction target in 2020 and to promote reductions ofgreenhouse gas emissions (GHG) within its scope in a cost-effective manner.
In addition to the 2020 targets, the Effort Sharing Decision establishes binding annual GHG emission limits — so-called annual emission allocations (AEAs) — for all Member States for the period 2013–2020 with annual reporting obligations and compliance checks.
Monitoring, reporting and compliance
The Eﬀort Sharing Decision (ESD) and the Monitoring Mechanism Regulation (Regulation (EU) No 525/2013, MMR) have established an annual reporting and compliance cycle requiring an annual review of Member States' greenhouse gas inventories to ensure that compliance with theESD is assessed in a credible, consistent, transparent and timely manner.
The reviewed inventory data are used to check Member States' compliance with their annual emission limits.
If a Member State's emissions exceed its annual emission allocation even when the ﬂexibilities are taken into account, it will need to take corrective action in addition to the likelihood of the Commission launching regular infringement procedures.
The corrective action includes a penalty of 1.08 times the Member State's excess annual emissions adjusted for the following year and temporary suspension of its right to transfer AEAs to other Member States.
The ﬁrst annual inventory review will be carried out in 2015 and will concern Member States' inventories for the year 2013.
Setting national targets for GHG emissions not covered by the EU Emissions Trading System
The Eﬀort Sharing Decision sets Member State targets for GHG emissions between -20% and +20% by 2020 compared to 2005 based on economic capacity, with reduction targets for countries with higher GDP per capita than the EU average, and emission increase limits for countries with lower GDP per capita.
At the European Council meeting in October 2014, EU leaders expressed their wish to continue the Effort Sharing Decision approach for the period 2021-2030, with the aim to reduce emissions in the non-ETS sectors by 2030 by 30% compared to 2005 as the contribution in implementing the overall economy-wide emission reduction target of at least 40% in 2030 as compared to 1990 (see the European Council Conclusions of 23/24 October 2014 (EUCO 169/14)).
The October 2014 European Council also declared that "the methodology to set the national reduction targets for the non-ETS sectors, with all the elements as applied in the Eﬀort Sharing Decision for 2020, will be continued until 2030, with eﬀorts distributed on the basis of relative GDP per capita."
The European Council also expressed its wish that the applicable target range be as follows: "All Member States will contribute to the overall EU reduction in 2030 with the targets spanning from 0% to -40% compared to 2005."
|Last Updated on Wednesday, 06 April 2016 19:45|