Recently, the proposals for the revision of the Effort sharing regulation (ESR), Land use, land use change and forestry regulation (LULUCF) and CO2 emission standards for new cars and light vehicles were published in the Official Journal of the EU.
The files were amended in accordance with the EU common goal of reaching 55% GHG emissions reductions by 2030 and climate neutrality in 2050.
Effort sharing regulation
The overall ESR 2030 GHG emission reduction target was increased from 30% to 40% at EU level, compared to 2005 levels.
The national reduction targets assigned to each member state range between 10–50%. The national targets will contribute to the overall 40% EU reduction in 2030.
Land use, land use change and forestry regulation
The EU 2030 target for net GHG removals in the LULUCF sector is 310 MtCO2e.
The "no debit" rule will apply until 2025.
From 2026 to 2030, each member state will have a binding national target for 2030. Member states can use the surplus annual emission allocations under the ESR to reach their LULUCF targets.
CO2 emission standards for new cars and light vehicles
The new targets are:
- 55% CO2 emission reductions for new cars and 50% for new vans from 2030 to 2034 compared to 2021 levels
- 100% CO2 emission reductions for both new cars and vans from 2035 (full phase out)
The zero- and low-emission vehicles (ZLEVs) incentive mechanism will be in place from 2025 until 2030. If a manufacturer meets certain benchmarks for the sales of ZLEVs, it can be rewarded with less strict CO2 targets. The benchmark is set at 25% for cars and 17% for vans.
The entry into force will be on:
- 11 May 2023 for LULUCF;
- 15 May 2023 for the CO2 emission standards for new cars and light vehicles; and
- 16 May 2023 for the ESR.
For access to our full analysis on these and more developments and/or a free, non-binding demo of our Sustainability service, please request access via the below button.
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