The European Parliament Committee on Environment, Public Health, and Food Safety (ENVI) has adopted its report on the Effort Sharing Regulation (ESR), one of five reports of the “Fit for 55 in 2030 package”, the EU’s plan to reduce greenhouse gas (GHG) emissions by at least 55 percent by 2030 compared to 1990 levels and have net-zero GHG emissions (climate neutrality) by 2050 in line with the European Climate Law.
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The five reports of the “Fit for 55 in 2030 package”, adopted by ENVI on May 17, 2022, include the Emissions Trading System (ETS) along with a report on the revision of the ETS as regards aviation, the EU Carbon Border Adjustment Mechanism (CBAM), Effort Sharing Regulation (ESR), and land-use, land-use change, and forestry (LULUCF).
According to a statement on May 17, 2022, the adopted package is “an important step towards the EU’s goal to become independent from expensive and polluting fossil fuels from Russia well before 2030.”
More transparency and less flexibility
The Effort Sharing Regulation (ESR) which sets binding annual greenhouse gas (GHG) emission reductions for EU member states, currently regulates roughly 60 percent of EU emissions.
The Commission has proposed to increase the mandatory GHG reduction 2030-target at the EU level from 30 percent to 40 percent.
For the first time, all EU member states must now reduce GHG emissions with targets ranging between 10-50 percent.
MEPs call for stricter regulation of GHG emissions in member states including fewer options to exceed quotas.
The report was adopted with 61 votes for, 20 against, and 6 abstentions.
The adopted report underlines that it is important to have more transparency on Member State actions under the effort sharing regulation in order to be able to hold them better accountable.
MEPs wish to minimize the possibility to borrow emission allowances from the following year, by reducing the limit for borrowing compared to the proposal by the Commission.
They also want to lower the limit for how much member states can bank their emission allowances to the following years, should they exceed their mandatory reductions.
Restrict statistical transfers
MEPs furthermore request restrictions on the possibility for Member States to trade allowances with other Member States and any proceeds from emissions trading within the ESR must be allocated to climate action.
They also want to remove the possibility for member states to receive additional GHG emission allowances through the so-called additional reserve.
In addition, the report calls for “more attention to GHG emissions from biomass-burning installations to ensure that the usage of sustainable fuels does not result in more emissions than fossil fuels.”
Finally, MEPs want the Commission to present one or more EU-wide targets for the reduction of non-CO2 emissions by July 2023 to ensure that the EU will become climate neutral by 2050 as laid down in the EU Climate Law.
This is one of the key instruments for the EU to deliver on our climate agenda. For the first time, we are now on track to build a strong majority in the European Parliament to oblige all member states to reduce their emissions. This will send a strong signal to the Council: now is the time to turn the EU climate law into concrete action, commented rapporteur Jessica Polfjärd (EPP, SE).
All these reports, including those on CO2 emission standards for cars and vans and the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), adopted on May 11, 2022, are scheduled for a vote during the June 6-9, 2022 plenary session, after which Parliament will be ready to start negotiations with EU governments.
The European Parliament’s position on the Market Stability Reserve for the ETS was adopted by the Plenary in April 2022.
