EU carbon rules / Regulations / Effort Sharing Regulation (ESR)
In force Regulation Climate targets
Effort Sharing Regulation (ESR)
National emission reduction obligations for sectors not covered by carbon pricing
- Reference
- Regulation (EU) 2023/857
- Key date
- 2023
- Applies to
- Member States (transport, buildings, agriculture, waste, etc.)
01
Who the regulation applies to
This regulation applies to:
- Member States (must meet annual minimum greenhouse gas reduction contributions for 2021–2030, covering the domestic transport (excluding aviation), buildings, agriculture, small industry and waste sectors; national 2030 targets range from 10% to 50% reduction compared with 2005, with an EU-wide total reduction of 40%)
- Iceland and Norway (have agreed to implement this Regulation, with binding 2030 emission reduction targets and the same obligations and flexibilities as Member States)
- (Not applicable) Greenhouse gas emissions from activities listed in Annex I to Directive 2003/87/EC (except ‘maritime transport’ activities and activities listed solely for the purposes of Articles 14 and 15 of that Directive)
This Regulation is an amendment to Regulation (EU) 2018/842 (Effort Sharing Regulation).
The following provisions define its scope:
Article 1, point (1) — Amendments to Regulation (EU) 2018/842 (replacing Article 1 'Subject matter')
This Regulation lays down obligations on Member States with respect to their minimum contributions for the period from 2021 to 2030 to fulfilling the Union’s target of reducing its greenhouse gas emissions by 40 % below 2005 levels in 2030 in the sectors covered by Article 2 of this Regulation. It contributes to the long-term target of climate neutrality in the Union at the latest by 2050, with the aim of achieving negative emissions thereafter. It thereby contributes to achieving the objectives of Regulation (EU) 2021/1119 of the European Parliament and of the Council (*1) (‘European Climate Law’) and the Paris Agreement. This Regulation also lays down rules on determining annual emission allocations and for the evaluation of Member States’ progress towards meeting their minimum contributions.
Article 1, point (2) — Amendments to Regulation (EU) 2018/842 (replacing Article 2(1) 'Scope')
1. This Regulation applies to the greenhouse gas emissions from IPCC source categories of energy, industrial processes and product use, agriculture and waste as determined pursuant to Regulation (EU) 2018/1999 of the European Parliament and the Council (*2), excluding greenhouse gas emissions from the activities listed in Annex I to Directive 2003/87/EC, other than the activity ‘maritime transport’ and activities only listed therein for the purposes of Articles 14 and 15 of that Directive.
02
What the regulation requires
| Duty | Trigger | Evidence | Timing |
Support Member State emission reductions in non-ETS sectors
Reduction targets for buildings, transport, agriculture, waste and other sectors are borne by Member States. | Operators in non-ETS sectors | Member State annual GHG inventories and policies | 2021–2030 |
03
Key provisions
Amended Article 1 — minimum contributions, 2030 target
This Regulation lays down obligations on Member States with respect to their minimum contributions for the period from 2021 to 2030 to fulfilling the Union's target of reducing its greenhouse gas emissions by 40 % below 2005 levels in 2030 in the sectors covered by Article 2 of this Regulation. ... This Regulation also lays down rules on determining annual emission allocations and for the evaluation of Member States' progress towards meeting their minimum contributions.
Amended Article 4(2) — annual emission limits
Subject to the flexibilities provided for in Articles 5, 6 and 7 of this Regulation ..., each Member State shall ensure that its greenhouse gas emissions: (a) do not exceed, in the years 2021 and 2022, the limit defined by a linear trajectory ...; (b) do not exceed, in the years 2023, 2024 and 2025, the limit defined by a linear trajectory, starting in 2022 at the annual emission allocation for that Member State ... and ending in 2030 at the limit set for that Member State in column 2 of Annex I.
Amended Article 5(1) — borrowing
In respect of the years 2021 to 2025, a Member State may borrow a quantity of up to 7,5 % from its annual emission allocation for the following year.
Amended Article 5(4) — transfers between Member States
A Member State may transfer up to 10 % of its annual emission allocation for a given year to other Member States in respect of the years 2021 to 2025, and up to 15 % in respect of the years 2026 to 2030.
Amended Article 8(1) — corrective action plan
If the Commission finds ... that a Member State is not making sufficient progress towards meeting its obligations under Article 4 of this Regulation, that Member State shall, within three months, submit to the Commission a corrective action plan ...