On Wednesday 10 July, the European Commission adopted an amendment to Implementing Decision (EU) 2020/2126 on changes concerning the use of “flexibility in the Emissions Trading System (ETS)” under the Effort Sharing Regulation.
This regulation, revised in 2023, sets the objective of reducing greenhouse gas emissions by 40% by 2030 compared to 2005 levels, covering the domestic transport, building, agriculture, small-scale industry and waste sectors.
This objective translates into binding national targets for each Member State, varying from -10% to -50% depending on their GDP per capita.
The flexibility of the Emissions Trading System allows nine Member States (Belgium, Denmark, Ireland, Luxembourg, Malta, the Netherlands, Austria, Finland and Sweden) to cancel a limited quantity of ETS allowances and not sell them at auction, receiving equivalent allocations in exchange.
Following this review, Belgium, Malta, the Netherlands and Sweden may notify, before 31 December 2024, the quotas they wish to cancel for the period 2025-2030. Malta and Sweden have already confirmed their intention to use this flexibility, while the Netherlands is considering doing so if necessary. These Member States may revise their notified percentages by the end of 2024 and 2027.
This decision, which reflects these changes and notifications, is a crucial step in ensuring that the EU can meet its climate objectives in a cost-effective and efficient way.
See the execution decision: https://aeur.eu/f/d13 (Original version in French by Nithya Paquiry)