Content updated 12 June 2023

Effort sharing regulation

The Effort Sharing Regulation (ESR) transforms the targets of the Clean Energy Package into binding annual targets for each Member State for the period 2021–2030. It applies for sectors not included in the EU Emissions Trading System (EU ETS).

An amendment of the ESR was entered into force 16 May 2023. The new legislation increases the emissions reduction target for the targeted sectors from 29% to 40% by 2030, compared to 2005 levels.

The sectors covered by the ESR include buildings, agriculture, waste, small industry, and transport. These sectors account for nearly 60% of EU GHG emissions.

Examples of potential measures that Member States can take to reduce emissions and achieve their targets include:

  • promoting public transport,
  • retrofitting buildings,
  • more efficient heating and cooling systems, and
  • more climate-friendly agricultural practices.

The proposal includes limited adjustments in the way Member States can use existing flexibilities to meet their targets. In addition, the Commission proposes to establish an additional reserve to help Member States comply with the more ambitious Effort Sharing targets.

The agreement is the latest step in the adoption of the Commission’s ‘Fit for 55’ legislative package to deliver the European Green Deal.

The revised regulation was proposed in July 2021 by the European Commission, along with a series of legislative proposals, to set out how it intends to achieve climate neutrality in the EU by 2050.