Revising the Effort-sharing Regulation for 2021-2030: 'Fit for 55' package

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. 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. Fifth edition. The 'EU Legislation in Progress' briefings are updated at key stages throughout the legislative procedure.