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MEPs vote to cut Member States’ emissions by 40%

MEPs vote to cut Member States’ emissions by 40%
The European Council adopts a regulation setting stricter carbon dioxide (CO2) emission performance standards in the EU for new passenger cars and vans with a reference to electro-fuels (eFuels).

On March 14, 2023, the European Parliament (EP) adopted the revision of the so-called Effort Sharing Regulation (ESR). The revised proposal increases the 2030 greenhouse gas (GHG) reduction target at the EU level from 30 percent to 40 percent compared to 2005 levels.

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The Effort Sharing Regulation (ESR) is part of the “Fit for 55 in 2030 package“, which is the EU’s plan to reduce greenhouse gas (GHG) emissions by at least 55 percent by 2030 compared to 1990 levels in line with theEuropean Climate Law.

Theadopted ESR, which now also has to be formally endorsed by the Council, reduces the allowed maximum level of GHG emissions in the Member States from transport, buildings, and agriculture until 2030, and sets binding annual reductions for GHG emission for road transport, heating of buildings, agriculture, small industrial installations, and waste management for each EU member state and currently regulates roughly 60 percent of all EU emissions.

The revised law increases the 2030 GHG reduction target at the EU level from 30 percent to 40 percent compared to 2005 levels.

For the first time, all EU countries must now reduce GHG emissions with targets ranging between 10 and 50 percent. The 2030 targets for each Member State are based on GDP per capita and cost-effectiveness.

Member States will also have to ensure every year that they do not exceed their annual GHG emission allocation.

Flexibility and transparency

According to the European Parliament, the law strikes a balance between the need for EU countries to be flexible to achieve their targets while ensuring a just and socially fair transition, and the need to close loopholes so the overall EU reduction target is met.

For this reason, there are limits on how much emissions the Member States can save from previous years, and borrow from future years as well as on how much they can trade allocations with other member states.

In order to be able to hold Member States accountable, the Commission will make information public on national actions in an easily accessible form, as requested by Parliament.

With this law, we take a major step forward in delivering on the EU’s climate goals. The new rules for national emission cuts ensure that all member states contribute and that existing loopholes are closed. This allows us to send a clear signal that the EU is serious about being the global champion for a competitive and efficient climate agenda, commented rapporteur Jessica Polfjärd (EPP, SE).

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