The Effort Sharing Decision (ESD) covers 60% of EU’s total greenhouse gas emissions and is therefore a centrepiece of Europe’s climate legislation. In contrast to the EU’s Emissions Trading Scheme (ETS) which started in 2005, the implementation of the ESD only began in 2013. Therefore, little is known about how successful it has been tackling the sectors not covered by the ETS.
The EU’s 2030 Climate Framework must build on ambitious and economy-wide, legally binding climate, renewable energy and energy efficiency targets. Having strong and clearly laid out emission reductions targets for the non-ETS sectors will be vital in order to ensure the EU can meet its low carbon trajectory for 2050. In this article we answer a few of the most important questions about the future of the Effort Sharing Decision.
The current EU Effort Sharing Decision1 (ESD) ensures that the EU’s greenhouse gas (GHG) target for 2020 is legally binding for Member States and economy wide in scope. It covers almost 60% of Europe’s GHG emissions. Those sectors must deliver significant emissions reductions in the period from 2020 to 2030 if the EU is to develop on a competitive low carbon pathway. A legal framework for non-ETS emissions is therefore essential for the 2030 Climate package. In addition, effective policies in the ESD sectors can yield many other benefits such as job creation and improved public health. We urge the Parliament to utilize its upcoming report on the 2030 package to engage in a constructive debate and help secure the future and reform of the ESD.