EU Effort Sharing Decision (ESD)
Under the EU Effort Sharing Decision, EU Member States have taken on binding annual targets for reducing their greenhouse gas emissions from the sectors not covered by the EU ETS, such as housing, agriculture, waste and transport (excluding aviation). Around 50% of the EU’s total emissions come from sectors outside the EU ETS.
The overall EU target under the ESD is a 10% emission reduction in 2020 compared to 2005. Each Member State has an ESD target determined according to its economic capacity. Significant differences exist between Member States. Some need to reduce emissions compared to 2005 whilst others are permitted a limited growth in emissions.
MS can use international offsets up to 3% of their 2005 emissions in the effort sharing sectors.
Figure: Projected gaps between 2020 GHG emissions and national targets in sectors not covered by the EU ETS