Effort Sharing Decision (Decision No. 406/2009/EC on the effort of Member States to reduce their greenhouse gas emissions to meet the Community's greenhouse gas emission reduction commitments up to 2020)
It aims to reduce GHG emissions from sectors not included in the EU Emission Trading System (EU ETS) such as transportation, buildings, agriculture and waste.
Each Member State agreed to a binding national emissions limitation target for 2020 that reflects its relative wealth. The targets range from a reduction of 20% by the richest Member States, to an increase of 20% by the poorest, compared to 2005 levels. These national targets will cut EU emissions from non-ETS sectors by 10% by 2020 compared with 2005 levels. Member States may transfer unused emission allocations to the following year or to other Member States and purchase a proportion of credits from third countries.
The ETS and effort-sharing legislation are together meant to achieve the 20% emissions reductions by 2020 from 1990 levels set in the 2020 climate and energy package.
Commission Decision 2013/162/EU of 26 March 2013 determines Member States' annual emission allocations for the period from 2013 to 2020 pursuant to Decision No 406/2009/EC, and Commission Implementing Decision 2013/634/EU of 31 October 2013 adjusts the Member States' annual emission allocations for the same period.