Close this search box.

The Effort Sharing Decision after 2020 – Ensuring that the EU’s largest climate instrument is fit for purpose



To match the ambition of the Paris Agreement the revised ESD for the post-2020 period should:

  1. Be in line with an overall greenhouse gas emission reduction target of at least -95% by 2050 supported by, at minimum, a 45% reduction in ESD sectors by 2030. Both objectives should be based on an EU carbon budget to stay well below 2°C and to pursue 1.5°C.
  2. Introduce an automatic mechanism which, every five years, allows for emission cuts to be accelerated as required by the latest science and/or allowed by technological potential, in line with the Paris Agreement’s commitments.
  3. Avoid loopholes which can undermine the EU’s 2030 greenhouse gas reduction target, by starting the countdown to the Member States’ 2030 climate targets from their actual emissions levels (rather than inadequate 2020 target levels) and by barring the use of EU ETS credits and land use offsets.
  4. Robustly govern the EU’s greenhouse gas emissions by ensuring that Member States produce annual, transparent and enforceable planning, compliance, and reporting documents.
  5. Strengthen the coherence between sectoral policies by ensuring that emission reduction efforts made under the ESD are fully represented in National Energy and Climate Plans, and by enhancing the synergies between sectoral policies under the ESD.

ESD Carbon Budget Infographic Final

Read full policy brief here


Related publications

CMW tour of Ghent port

Annual report 2023

In this annual report, we’ve compiled Carbon Market Watch’s highlights of 2023 and the successes we achieved. We could not have accomplished this without the

Join our mailing list

Stay in touch and receive our monthly newsletter, campaign updates, event invites and more.