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Document 32018R0842
Climate action – binding annual greenhouse gas emission reductions (2021–2030)
Not all Member States have the same 2030 target. The ESR distributes the burden of GHG emission reduction in accordance with fairness and cost-effectiveness considerations.
By 2030, Member States must reduce their 2005 GHG emission levels in accordance with the percentages set out in column 2 of Annex I, which range from 10% (Bulgaria) to 50% (Denmark, Germany, Luxembourg, Finland and Sweden).
The European Commission is empowered to adopt implementing acts setting out Member States’ individual annual emission allocations (AEAs) for the years 2021–2030, expressed in tonnes of CO2 equivalent, in accordance with the linear trajectories set out in the regulation. Given that the 2030 targets and the system of trajectories leading to them were amended in 2023, the Commission will, in 2023, amend Commission Implementing Decision (EU) 2020/2126 to update the number of AEAs assigned to Member States in the years 2023–2030.
Flexibility rules in the amended regulation allow Member States to:
Nine Member States (listed in Annex II: Belgium, Denmark, Ireland, Luxembourg, Malta, Netherlands, Austria, Finland and Sweden) may cancel a limited percentage of their emissions trading system allowances, up to a combined maximum of 100 million tonnes of CO2 equivalent, in order to compensate for an excess of emissions in the ESR sectors. Member States must notify the Commission by 31 December 2023 if they intend to make use or further use of the limited cancellation of emissions trading system allowances.
The Commission will carry out compliance checks in 2027 (covering emissions in 2021–2025) and 2032 (covering emissions in 2026–2030). If these checks show that, in a given year, after using the abovementioned flexibilities, a Member State does not have enough emission allocations to cover all its GHG emissions, the amount of emissions in excess will be multiplied by 1.08 and the result will be added to the emissions generated in the subsequent year.
Member States which meet certain gross domestic product and GHG emissions criteria may receive a limited number of allocations from a safety reserve containing up to 105 million tonnes of CO2 equivalent to compensate for the emissions they may produce in excess of their 2030 targets.
The Commission:
Regulation (EU) 2018/842 also amends Regulation (EU) No 525/2013, which was subsequently repealed and replaced by Regulation (EU) 2018/1999 – see summary).
Regulation (EU) 2018/842 has applied since 9 July 2018.
Amending Regulation (EU) 2023/857 has applied since 16 May 2023.
The regulation is a further step towards meeting the EU’s previous commitment under the Paris Agreement to reduce GHG emissions by at least 40% by 2030 compared with 1990 levels.
The sectors covered by the regulation cover almost 60% of total domestic EU emissions.
For further information, see:
Regulation (EU) 2018/842 of the European Parliament and of the Council of 30 May 2018 on binding annual greenhouse gas emission reductions by Member States from 2021 to 2030 contributing to climate action to meet commitments under the Paris Agreement and amending Regulation (EU) No 525/2013 (OJ L 156, 19.6.2018, pp. 26–42).
Successive amendments to Regulation (EU) 2018/842 have been incorporated into the original text. This consolidated version is of documentary value only.
Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 establishing the framework for achieving climate neutrality and amending Regulations (EC) No 401/2009 and (EU) 2018/1999 (‘European Climate Law’) (OJ L 243, 9.7.2021, pp. 1–17).
Commission Implementing Decision (EU) 2020/2126 of 16 December 2020 on setting out the annual emission allocations of the Member States for the period from 2021 to 2030 pursuant to Regulation (EU) 2018/842 of the European Parliament and of the Council (OJ L 426, 17.12.2020, pp. 58–64).
See consolidated version.
Regulation (EU) 2018/1999 of the European Parliament and of the Council of 11 December 2018 on the Governance of the Energy Union and Climate Action, amending Regulations (EC) No 663/2009 and (EC) No 715/2009 of the European Parliament and of the Council, Directives 94/22/EC, 98/70/EC, 2009/31/EC, 2009/73/EC, 2010/31/EU, 2012/27/EU and 2013/30/EU of the European Parliament and of the Council, Council Directives 2009/119/EC and (EU) 2015/652 and repealing Regulation (EU) No 525/2013 of the European Parliament and of the Council (OJ L 328, 21.12.2018, pp. 1–77).
See consolidated version.
Regulation (EU) 2018/841 of the European Parliament and of the Council of 30 May 2018 on the inclusion of greenhouse gas emissions and removals from land use, land use change and forestry in the 2030 climate and energy framework, and amending Regulation (EU) No 525/2013 and Decision No 529/2013/EU (OJ L 156, 19.6.2018, pp. 1–25).
See consolidated version.
last update 11.12.2023