REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS - Kick-starting the journey towards a climate-neutral Europe by 2050 EU Climate Action Progress Report 2020
1. This document is an Explanatory Memorandum (EM) on the European Commission’s 2020 EU Climate Action Progress Report, which is required under Article 21 of Regulation (EU) No 525/2013 on a mechanism for monitoring and reporting greenhouse gas emissions.
2. The report indicates the progress the EU has made in reducing its greenhouse gas (GHG) emissions during 2019 and towards meeting its 2020 and 2030 climate commitments.
3. The report covers: meeting the EU’s International Commitments on GHG Emissions in 2019, Emissions in the EU Emissions Trading System (EU ETS), Effort Sharing Emissions (Effort-Sharing Decision (ESD) and Effort-Sharing Regulation (ESR), Land Use, Land Use Change and Forestry (LULUCF), Financing Climate Action, Adapting to Climate Change and International Climate Cooperation.
4. The EU ETS is a 'cap and trade’ system that allows companies to buy and sell emission allowances, with the aim of reducing emissions from power stations, manufacturing plants, and aviation between the participating countries. The ESD (up to 2O2O) and ESR (2021-2030) constitute the Effort Sharing legislation, and cover sectors not included in the EU ETS, principally transport (excluding aviation), buildings, non-CO2 emissions from agriculture, and waste. The Effort Sharing legislation set binding national emission targets for Member States based on Member States' relative wealth. Taken together, and (from 2021) with the LULUCF Regulation, these pieces of EU legislation are designed to ensure the EU meets, its overall greenhouse gas targets for 2O2O and 2030.