Thanks to this agreement, 195 countries have adopted the first legally binding universal agreement on the global climate. The agreement’s objective (to limit the average increase in global temperature to well below 2°C, while seeking to reduce it to 1.5°C, compared to pre-industrial levels) is ambitious and cannot be achieved without a major overhaul of global energy production and consumption.

In support of the global climate agenda, the EU has adopted binding climate and energy targets for 2020 and proposed targets for 2030 as part of its overall efforts to move to a low-carbon economy and reduce greenhouse gas emissions by 80-95 % by 2050.

The first set of climate and energy targets for 2020 includes a 20 % reduction in emissions (compared to 1990 levels), a 20 % energy consumption from renewable sources and a 20 % increase in energy efficiency.

According to the current proposals under consideration by the EU institutions, the next 2030 target will include an update of these goals: emissions will must be reduced by 40 %, 27 % of energy will have to come from renewable sources and energy efficiency will have to increase by 27 % (or 30 %, according to the European Commission’s recent proposal) over the baseline targets.

Decrease in overall greenhouse gas emissions

Measures taken to meet these targets are helping to reduce European emissions, which in 2015 were down about 22% from their level in 1990 and declined in all major sectors except for transport, refrigeration and cooling.

In this period, the greatest reductions were recorded, almost in equal measure, in the industry sector and in the energy supply sector.

According to recent EEA assessments of greenhouse gas emissions and energy (Trends and projections in Europe 2016), the EU is overall on track to meet its 2020 targets.

The pace of reductions is expected to slow after this year and more efforts will be needed to achieve the long-term goals. In particular, despite the improved fuel efficiency of cars and the increased use of biofuels, reducing overall emissions from transport in the EU has proven very difficult.

Some technological solutions, such as second-generation biofuels and carbon capture and storage, are expected to contribute to overall climate efforts, but it is unclear whether or not they can be implemented to the extent required and whether they are feasible and truly sustainable in the long term.

Effort Sharing Decision and EU Emissions Trading System

In terms of greenhouse gas (GHG) emission reductions, one of the cornerstones of the EU’s commitment is the Effort Sharing Decision, which sets binding annual greenhouse gas emission targets for all EU member states for 2020.

The decision covers sectors such as transport, construction, agriculture and waste, which account for about 55% of the EU’s total emissions.

National emissions targets have been set according to the relative wealth of member states, meaning that richer countries must reduce their emissions more than others, while some countries are allowed to increase their emissions from these sectors.

Overall, by 2020 the national targets will achieve a reduction of about 10% of total EU emissions from the sectors concerned compared to 2005 levels.

The remaining 45% of EU emissions (mainly from power plants and industrial installations) are regulated by the EU Emissions Trading System (EU ETS).

The EU ETS sets a cap on the total amount of greenhouse gases that can be emitted by more than 11,000 installations that are large energy consumers in 31 countries, including emissions from airlines operating between those States.

Under the system, companies receive or purchase emission allowances, which they can trade with others; heavy fines are imposed on companies that release emissions in excess of their allowances.

Over time, the system-wide cap is reduced to cause the total emissions to decrease.

By establishing a monetary value for carbon, the EU ETS creates incentives for companies to cut emissions in the most cost-effective way and invest in clean, low-carbon technologies.

The European Environment Agency monitors progress in reducing greenhouse gas emissions covered by the EU ETS.

Based on the most recent data and assessment, these emissions decreased by 24% between 2005 and 2015 and are already below the 2020 cap; the decrease is mainly due to less use of coal- and lignite- derived fuels and greater use of renewables for energy production.

Emissions from other industrial activities under the EU ETS have also declined since 2005, but have remained stable in recent years.

The European Commission recently proposed increasing the intensity of emission cuts from 2021, so that the sectors covered by the EU ETS would reduce their emissions by 43% by 2030 compared to 2005  linkare esternamente

In the long run, looking beyond the 2030 targets, EU member states will be able to achieve greater reductions in GHG (greenhouse gas) emissions from the sectors covered by the effort sharing decision.

Without substantial efforts in these areas, the EU would fail to meet its 2050 target of cutting its emissions by 80 % from 1990 levels