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Parliamentary questions
16 May 2018
E-001484/2018
Answer given by Mr Arias Cañete on behalf of the Commission

The revised EU Emission Trading System (EU ETS) Directive and the agreement on the Effort Sharing Regulation (ESR) contain several elements to distribute costs between Member States fairly while reaching the EU's climate target for 2030 to reduce greenhouse gas emissions by at least 40%, which is the EU nationally determined contribution under the Paris Agreement.

For example, under the EU ETS, 10% of auctioned emission allowances are dedicated for distribution among Member States with a gross domestic product (GDP) per capita below 90% of the Union average in 2013. Moreover, to help with the investment challenge, Member States that in 2013 had a GDP per capita below 60% of the Union average are also eligible for funding from the Modernisation Fund for the energy sector.

In the ESR, the national emission reduction targets are distributed according to the GDP per capita, resulting in lower targets for lower income Member States. Overachievement of these targets allows lower income member states to sell their surplus emission allocations to Member States that may not achieve their targets.

Within the group of higher income Member States, the ESR also includes a limited adjustment of some of their targets to take into account possible cost effectiveness concerns. Moreover, there is limited access (one-off flexibility) to the use of EU ETS emission allowances to meet ESR targets.

Finally, Member States with a high share of emissions from agriculture have increased access to a flexibility mechanism allowing the (limited) use of credits from the Land Use, Land Use Change and Forestry sectors, gained from action to secure carbon stored in soils and forests, in order to meet ESR targets, recognising the lower mitigation potential of the agriculture sector.

Last updated: 17 May 2018Legal notice