Members' Research Service By / November 25, 2021

Revising the Effort-Sharing Regulation for 2021-2030: ‘Fit for 55’ package [EU Legislation in Progress]

On 14 July 2021, the European Commission put forward a legislative proposal amending Regulation No (EU) 2018/842 on binding annual greenhouse gas emission reductions by Member States from 2021 to 2030 (the Effort-Sharing Regulation).

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Written by Dessislava Yougova (5th edition, updated on 31.05.2023).

The EU’s effort-sharing legislation covers greenhouse gas (GHG) emissions in sectors not included in the EU emissions trading system. A wide range of sources – such as fuels used for road transport, energy used for heating and cooling in buildings, animal digestion and fertilisers used in agriculture, waste treatment, and small industries – account for these emissions. To cut the emissions in these sectors, the EU Effort-sharing Regulation (ESR) establishes collective and national binding targets and sets up annual emissions allocations for each Member State for the 2021-2030 period.

On 14 July 2021, the European Commission submitted a proposal to amend the binding annual emissions reductions by Member States from 2021 to 2030. The proposal is part of the ‘fit for 55’ package, which aims to adapt EU climate and energy legislation to the new EU objective of a minimum 55 % reduction in net GHG emissions by 2030 compared to 1990, in accordance with the recent European Climate Law. To contribute to the new climate ambition, sectors covered by the ESR have to achieve a collective reduction of 40 % in their emissions by 2030 compared to 2005.

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The European Parliament and the Council adopted their positions on 8 and 29 June 2022, respectively. The interinstitutional negotiations concluded on 8 November 2022 with a provisional agreement, which was adopted by the Parliament on 14 March 2023. The regulation was published in the Official Journal of the EU on 26 April 2023 and entered into force on 16 May 2023.


Proposal for a Regulation of the European Parliament and of the Council amending Regulation (EU) 2018/842 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
Committee responsible:Environment, Public Health and Food Safety (ENVI)COM(2021)555
Rapporteur:Jessica Polfjärd (EPP, Sweden)2021/0200(COD)
Shadow rapporteurs:Javi López (S&D, Spain)
Linea Søgaard-Lidell (Renew, Denmark)
Margrete Auken (Greens/EFA, Denmark) Silvia Sardone (ID, Italy)
Anna Zalewska (ECR, Poland)
Silvia Modig (The Left, Finland)
Ordinary legislative procedure (COD)
(Parliament and Council on equal footing – formerly ‘co-decision’)
Next steps expected: Regulation (EU) 2023/857, OJ L 111 26.04.2023, pp. 1-14

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