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EU Climate Policy

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2030 Climate and Energy Package  (Analysis here)

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In a nutshell, key highlights of decisions on the 2030 climate and energy framework include:

  1. A binding target to reduce domestic greenhouse gas emissions by at least 40% by 2030, possibly resulting in only 31% effective emission reductions

  2. A possible revision of the EU’s pledge after the climate summit in Paris next year, opening doors for the EU to increase its climate ambition and participate in the international carbon market

  3. Flexibilities to help achieve Member States’ targets for the non-ETS sectors, including offsetting non-ETS emissions with EU ETS allowances

  4. Continuation of free allocation of emission allowances to industry, worth €120-€300 billion

  5. Inclusion of land use, land use change and forestry (LULUCF) into the climate framework

  6. Financial support to the power sector in low-income states, including free allowances to power plants worth up to €11-€16.5 billion and a modernization fund worth €6-€9 billion

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2020 Package

The EU decided in 2008 to cut 20% of greenhouse gas emissions from 1990 levels by 2020, together with a 20% renewables target. It stipulated that an increase to a 30 % reduction commitment would depend other developed countries taking on comparably ambitious emission reductions targets and that the economically more advanced developing countries make a contribution commensurate with their respective responsibilities and capabilities.

The EU’s 20 % GHG reduction target for 2020 is implemented through the EU’s Emission Trading Scheme (EU-ETS) and the Effort Sharing Decision (ESD) which defines reduction targets for the non-ETS sectors (e.g. transportation) in each EU Member State.



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