Europaudvalget 2022
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EUROPEAN
COMMISSION
Brussels, 1.3.2023
SWD(2022) 343 final/2
CORRIGENDUM
This document corrects document SWD(2022) 343 final of 26.10.2022
[Minor corrections in table 8, p. 22, and table 10, p. 27]
The text shall read as follows:
COMMISSION STAFF WORKING DOCUMENT
Technical information
Accompanying the document
Report from the Commission to the European Parliament, the Council, the European
Economic and Social Committee and the Committee of the Regions
Accelerating the transition to climate neutrality for Europe’s security and prosperity
EU Climate Action Progress Report 2022
{COM(2022) 514 final/2}
EN
EN
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Contents
1. OVERVIEW OF EU CLIMATE TARGETS ........................................................................ 2
2. EU’s GREENHOUSE GAS EMISSIONS: TRENDS AND PROJECTIONS ...................... 6
3. GREENHOUSE GAS EMISSIONS COVERED BY THE KYOTO PROTOCOL AND
THE CLIMATE AND ENERGY PACKAGE ...................................................................... 9
4. SUMMARY OF EU’s RESPONSES TO THE SURGE OF ENERGY PRICES AND THE
RUSSIAN AGGRESSION TO UKRAINE ........................................................................ 11
5. COMMISSION’S ASSESSMENT OF NATIONAL LONG-TERM STRATEGIES ......... 12
6. EU GREENHOUSE GAS EMISSIONS BY SECTOR ....................................................... 14
7. TOTAL GHG EMISSIONS PER MEMBER STATE ......................................................... 16
8. GREENHOUSE GAS INTENSITY IN THE EU AND ITS MEMBER STATES ............. 17
9. GREENHOUSE GAS EMISSIONS PER CAPITA IN THE EU AND ITS MEMBER
STATES............................................................................................................................... 18
10. EU ETS EMISSIONS ........................................................................................................ 19
11. EMISSIONS COVERED BY THE EFFORT SHARING LEGISLATION ...................... 20
12. USE OF REVENUES FROM AUCTIONING OF ETS ALLOWANCES ....................... 33
13. EXAMPLES OF FUNDING OF CLIMATE RELATED PROJECTS ............................. 40
1
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1.
OVERVIEW OF EU CLIMATE TARGETS
Table 1: Overview of existing and Commission’s proposed new climate targets (in the “Delivering the European Green Deal” package - July 2021)
International commitments
The EU’s
commitment
under the Kyoto
Protocol (KP)
2020 Climate and Energy
Package
Effort Sharing
Decision (ESD)
EU domestic legislation
2030 Climate and Energy Framework
Effort
Sharing
Regulation
(ESR)
The EU’s commitment
under the Paris
Agreement
EU ETS
EU ETS
LULUCF
Target year of
period
Second
commitment period
(2013-2020)
Already in force – covers
the period post 2020
2013-2020
2013-2020
2021-2030
2021-2030
2021-2030
Emission
reduction
target
-20%
at least -55% net emissions
in 2030
-21% in 2020
compared to
2005 for ETS
emissions
-43% in 2030
compared to 2005
for ETS emissions
-10% in 2020
compared to
2005 for non-ETS
emissions
Annual targets
by MS.
Proposed new
target: -61%
Annual targets
by MS. In 2030
-30%
compared to
2005 for non-
ETS emissions
Proposed new
target: -40%
No-debit target based on accounting
rules
Proposed new targets:
-
For 2030 the EU target is -310 MT
CO
2
-eq
For 2035 the EU target is a climate
neutral land sector (combining
LULUCF and emission from
agriculture non-CO
2
).
-
Overall target: -20% GHG emissions
reduction vs 1990
Overall target: at least -55% net domestic reduction vs 1990
2
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Further
targets
-
• limiting global warming to
well
below
2°C.;
• every 5 years to set more
ambitious
targets
as
required
by
science;
•
report
on
implementation/
track
progress towards the long-
term goal through a robust
transparency
and
accountability system.
•
balance
between
anthropogenic emissions by
sources and removals by
sinks of greenhouse gases
in the second half of this
century.
Base year
1990, but subject to
flexibility rules.
1995 or 2000 may
be used as its base
year for Nitrogen
trifluoride (NF3)
2005
1990
2005
2005
2005
Subject to accounting rules
1990 for overall emission reduction
target
1990 for overall emission reduction target
3
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LULUCF
Included:
afforestation,
reforestation and
deforestation and
forest
management, other
activities if elected
(new accounting
rules)
Included
:
Contributes to
the commitment of
decreasing emissions by at
least -55%.
Included: Contributes to the commitment of decreasing emissions by at least -
55%.
Excluded from target, but reported
in inventories.
In order to ensure that sufficient mitigation efforts are deployed up to 2030,
the Climate Law limits the contribution of net removals to the Union 2030
climate target to 225 million tonnes of CO
2
equivalent, and provides that the
Union shall aim to achieve a higher volume of its net carbon sink in 2030
Aviation
1
Domestic aviation
included.
International
aviation not
attributed.
Civil aviation included:
outgoing flights that start in
the EU (emissions
calculated on the basis of
fuels sold in the EU).
EU ETS:
Domestic
(national) and
intra-EEA
international
aviation
included.
Upper limit for
credit use for
period 2008-
2020 at a
maximum of
50% of the
reduction
effort below
2005 levels.
ESD:
CO
2
from
domestic
aviation
excluded
EU ETS:
Domestic and
intra-EEA
international
aviation and
departing flights
to UK and CH
included.
ESR:
CO
2
from
domestic
aviation
excluded.
Aviation
generally
excluded.
Use
of
international
credits
Use of KP flexible
mechanisms subject
to KP rules
The EU will not use
international credits
(according to its NDC)
Annual use of
carbon credits is
limited to up to
3% of each
Member State's
ESD emissions in
2005
No
2
No
No
1
2
May be reviewed in the light of the implementation of ICAO's global measure and the EU’s enhanced target.
A link with the permit system in Switzerland has been ratified.
4
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Carry-over of
units
from
preceeding
periods
3
Subject to KP rules
including those
agreed in the Doha
Amendment
No
EU ETS
allowances can
be banked into
subsequent
ETS trading
periods since
the second
trading period.
No carry over
from previous
period.
Indefinite validity
of allowances not
limited to trading
periods, no need
to carry over.
No
No
Gases
covered
CO
2
, CH
4
, N
2
O,
HFCs
4
, PFCs, SF
6
,
NF
3
CO
2
, CH
4
, N
2
O, HFCs, PFCs,
SF
6
, NF
3
CO
2
, N
2
O, PFCs,
CO
2
, CH
4
, N
2
O,
HFCs, PFCs, SF
6
CO
2
, N
2
O, PFCs,
CO
2
, CH
4
, N
2
O,
HFCs, PFCs,
SF
6
, NF
3
CO
2
, CH
4
, N
2
O
Sectors
included
Energy,
IPPU,
agricult-
ure,
waste,
LULUCF
Energy,
IPPU,
agricult-
ure,
waste,
LULUCF
Energy, IPPU, agriculture,
waste, LULUCF
Power & heat
generation,
energy-
intensive
industry
sectors,
aviation
Transport
(except
aviation),
buildings, non-
ETS industry,
agriculture (non-
CO
2
) and waste
Power & heat
generation,
energy-intensive
industry sectors,
aviation
Transport
(except
aviation),
buildings, non-
ETS industry,
agriculture
(non- CO
2
) and
waste
Land use, land use change and forestry
Global
Warming
Potentials
used
IPCC
SAR
IPCC
AR4
IPCC AR5
IPCC AR4
IPCC AR5
3
4
For the CP2 it refers to carry over from CP1. For the ETS it refers to carry-over from previous trading period under the scheme itself.
HFCs are also covered by the Kigali Amendment to the Montreal Protocol, which entered into force on the 1
st
of January 2019.
5
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Applicable to
number
of
MS
15
(additio-
nal
KP
targets
for
single
MS)
EU-27,
UK and
Iceland
EU-27
EU-27
5
EU-27
6
5
6
In addition to the 27 Member States, Northern Ireland, Iceland, Liechtenstein and Norway are also covered under the EU-ETS.
Within the Agreement on the European Economic Area, Iceland and Norway cooperate with the EU-27 towards achieving the 2030 targets in the LULUCF and Effort Sharing sectors.
6
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2. EU’s GREENHOUSE GAS EMISSIONS: TRENDS AND PROJECTIONS
In 2021, EU greenhouse gas emissions continued the 30-years descending trend. EU-27
domestic greenhouse gas (GHG) emissions, including international aviation,
7
amounted to
3525 MtCo
2
-eq, below the 2019 level of 3735 MtCo
2
-eq, despite the strong rebound in
emissions following the unprecedented fall in 2020 due to the pandemic (see Figure 1). This
translates into a reduction in GHG emissions of 28.1% compared to the 1990 base year (or
28.7% when international aviation is excluded). Hence, overall GHG emissions remain on a
downward trend, although more effort is needed to reach the EU’s long-term climate targets.
The annual average reduction in domestic GHG emissions observed over the last decade (i.e.
2011-2021) has to more than double in order to achieve the 2030 target of -55% and keep up
the pace beyond 2030 to reach climate neutrality by 2050.
8
Figure 1: Total EU-27 GHG emissions (including international aviation) and removals 1990-2021, targets,
model-based projected emissions and removals 2022–2050
9
7
8
All departures of flights from EU airports.
These figures assume a quite significant improvement of LULUCF in absorbing the remaining emissions,
therefore clear actions are expected for the sector to revert recent trends.
9
Notes: (1) Historical GHG emissions and removals (1990-2021) are based on European Environment
Agency’s 2022 GHG Inventory. (2) Projected emissions and removals (2022-2050) are based on the EU
Reference Scenario 2020 (‘reference’; grey lines) and the MIX Policy Scenario (orange lines) supporting the
“Delivering the European Green Deal” policy initiatives. (3) GHG emissions and projections use global
warming potentials of the 4th Assessment Report of the IPCC to convert non-CO
2
emissions into CO
2
-
equivalent emissions. (4) The 2030 target (EU Climate Law) is defined as: ‘the net GHG emissions, i.e.
emissions after the deduction of removals, are reduced economy-wide and domestically by at least 55%
compared to 1990 levels’. For comparability, the ‘2030 target’ dot is represented at -55% of the net GHG
emissions level in 1990.
7
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The main driver of emission reductions over the past three decades was a significative decline
in energy intensity (i.e. the quantity of energy consumed to produce one unit of GDP) and to
a lesser extent in emission intensity (i.e. the amount of GHG emissions per unit of energy
production), with an annual average decline over 1990-2020 of 1.3% and 0.8%,
respectively.
10
However, emission intensity of power generation has decreased drastically
over the last three decades. In 2020, the EU electricity sector was 54% less GHG intensive
than in 1990 (an annual average decline of 1.8%).
11
Policies promoting a more efficient energy use in different sectors of the economy, a growing
deployment of renewable energy supply and the use of less carbon intensive fossil fuels have
been playing a key role in driving the decarbonisation process. This has allowed the
continued decoupling between emissions and economic growth with the GHG emission
intensity of the economy, defined as the ratio between emissions and GDP, falling to 268
gCO
2
-eq/EUR in 2020, less than half the 1990 level.
Table 2: Change in EU’s GHG emissions over 1990-2020: a sectoral perspective.
EU-27
1 - Energy
1.A.1 - Energy Industries
of whi ch:
1.A.1.a - Publ i c El ectri ci ty a nd Hea t Production
% rate of change
1990-2020
1990-2010
2010-2020
annual average % rate of change
1990-2020
1990-2010
2010-2020
-33.2
-45.7
-46.8
-11.5
-12.7
-12.1
-24.5
-37.8
-39.5
-1.1
-1.5
-1.5
-0.5
-0.6
-0.6
-2.2
-3.4
-3.6
1.A.2 - Manufacturing Industries and Construction
of whi ch:
1.A.2.a - Iron a nd Steel
-44.2
-54.1
-33.9
-38.6
-15.6
-25.3
-1.4
-1.7
-1.6
-1.8
-1.4
-2.3
1.A.3 - Transport
of whi ch:
1.A.3.b - Roa d Tra ns portation
7.2
11.2
21.6
24.4
-11.8
-10.6
0.2
0.4
1.0
1.2
-1.1
-1.0
1.A.4 - Other Sectors
1.A.4.a - Commerci a l /Ins titutiona l
1.A.4.b - Res i dentia l
1.A.4.c - Agri cul ture/Fores try/Fi s hi ng
-28.1
-31.9
-29.2
-15.6
-8.2
-5.0
-8.6
-12.2
-21.7
-28.3
-22.5
-3.8
-0.9
-1.0
-0.9
-0.5
-0.4
-0.2
-0.4
-0.6
-2.0
-2.6
-2.0
-0.3
2 - Industrial Processes and Product Use
2.A - Mineral Industry
2.B - Chemical Industry
2.C - Metal Industry
2.D - Non-energy Products from Fuels and Solvent Use
2.E - Electronics Industry
2.F - Product Uses as Substitutes for ODS
2.G - Other Product Manufacture and Use
2.H - Other Industrial Process and Product Use
-32.1
-26.3
-67.2
-52.6
-27.6
-9.1
-
-29.5
-34.0
-21.4
-17.9
-57.8
-42.7
-18.1
56.3
-
-26.6
7.5
-13.6
-10.2
-22.4
-17.3
-11.5
-41.9
-8.2
-4.0
-38.6
-1.0
-0.8
-2.2
-1.7
-0.9
-0.3
-
-1.0
-1.1
-1.0
-0.9
-2.8
-2.0
-0.9
2.7
-
-1.3
0.4
-1.2
-0.9
-2.0
-1.6
-1.0
-3.8
-0.7
-0.4
-3.5
3 - Agriculture
of whi ch:
3.1 - Li ves tock
-20.8
-22.2
-22.0
-22.0
1.5
-0.3
-0.7
-0.7
-1.0
-1.0
0.1
0.0
4 - Land Use, Land-Use Change and Forestry
5 - Waste management
Total emissions (UNFCCC)
Total emissions with international aviation (EU 2020)
Total net emissions (UNFCCC)
Total net emissions with international aviation (EU NDC)
7.7
-34.9
-31.9
-31.6
-33.8
-33.3
51.2
-20.8
-13.8
-12.7
-16.8
-15.6
-28.8
-17.8
-21.0
-21.6
-20.4
-21.0
0.2
-1.1
-1.0
-1.0
-1.1
-1.1
2.4
-1.0
-0.7
-0.6
-0.8
-0.7
-2.6
-1.6
-1.9
-2.0
-1.9
-1.9
This decomposition of total CO
2
emissions in different factors follows the well-known ‘Kaya Identity’. In this
case, we use the primary energy consumption as an indicator of the energy demand.
https://ourworldindata.org/emissions-drivers
11
https://www.eea.europa.eu/ims/greenhouse-gas-emission-intensity-of-1
10
8
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In terms of sectors (Table 2), emission reductions in the last three decades were significant in
the energy industry (e.g. electricity and heat production, -47%), in the manufacturing industry
and construction (e.g. iron and steel production, -54%) and in the industrial processes and
product use industries (e.g. chemical industry, -67%; metal industry, -53%). Conversely,
emissions in the transport sector have increased, especially in road transportation (+11%)
although they have been decreasing in the last ten years.
12
Emission reduction in the
agriculture sector (excluding fuel combustion) has somewhat halted at the half-way, showing
even a moderate increase since 2010.
13
Finally, the traditional role of natural sink of CO
2
of
the land use, land use change, and forestry sector (LULUCF), declined at a worrying speed in
the last decade.
12
Emissions in the refrigeration and air conditioning sector has also increased, although declining in the last few
years.
13
https://www.eea.europa.eu/ims/greenhouse-gas-emissions-from-agriculture
9
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3.
GREENHOUSE GAS EMISSIONS COVERED BY THE KYOTO PROTOCOL
AND THE CLIMATE AND ENERGY PACKAGE
Table 3 and 4 show progress towards the EU’s 2020 targets as defined under the EU Climate
and Energy Package and under the Kyoto Protocol. The main differences between the two
approaches are the sectoral coverage, the geographical scope and the time period comparison.
In particular, emissions from international aviation are included in the Climate and Energy
Package but excluded under the Kyoto Protocol. The geographical scope of the commitment
under the Kyoto protocol includes Iceland, the UK and certain regions not included in the
Climate and Energy Package. The Climate and Energy package is based on a year-to-year
comparison (2020 vs. 1990) whereas the Kyoto Protocol compares the average of emissions
in the period 2013-2020 (second commitment period) with emissions in 1990, the base year.
14
Under the
Climate and Energy package,
the EU, its Member States and the UK committed
jointly to achieving a quantified economy-wide greenhouse gas emission reduction target of
-20% below the 1990 level by 2020. At UNFCCC level, this translated into ‘the Cancun
pledge’.
The 5th Biennial Report to be submitted by 31 December 2022 to the UNFCCC will be the
basis for assessing the achievement of the Cancun pledge. The EU National Inventory Report
(‘NIR’) submitted to the UNFCCC on 27 May 2022 suggests that the EU-27 overachieved its
reduction target under the Convention by reducing emissions by -32% between 2020 and
1990. This means that the EU Member States and the UK have also met their emission
reduction targets.
Table 3: Emissions covered by the EU Climate and Energy Package 1990, 2020 and 2020 targets (Mt CO
2
-eq.
and % change from base year emissions)
Base year
emissions
(Mt CO
2
-eq.)
Climate and energy
package:
Total GHG Emissions,
including international
aviation
(
EU-27, convention scope)
1990
emissions
(Mt CO
2
-eq.)
2020
emissions
(Mt CO
2
-eq.)
2020
emissions
(% change from
base year)
2020 targets
(Mt CO
2
-eq.)
2020 target
(% change from
base year)
4 901
4 901
3 354
-32%
3 920
-20%
Under the
Kyoto Protocol,
the EU, its Member States, the UK and Iceland committed jointly
to reducing greenhouse gas emissions in the second commitment period (2013-2020) by 20%
on average in comparison to 1990, the emissions’ base year. Under such framework, the EU,
its Member States, the UK and Iceland were assigned Kyoto Protocol units (Assigned
Amount Unit, or AAU) for the eight-year second commitment period, based on 80 per cent of
14
For certain countries and greenhouse gases, the base year may differ, e.g. for Bulgaria it is 1988 instead of
1990; for NF3 it is 1995 for most Member States.
10
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its emissions in the base year. The AAUs reported in Table 4 correspond to million tonnes of
CO
2
equivalent.
The EU NIR submitted to the UNFCCC on 27 May 2022, once reviewed, will be the basis for
assessing whether the EU, its Member States, the UK and Iceland comply with their joint
commitment. The EU NIR suggests that the EU, its Member States, the UK and Iceland
overachieved their reduction target in the second commitment period of the Kyoto Protocol
by reducing emissions by -28%.
Table 4: Emissions covered by the Kyoto Protocol, second commitment period (Mt CO
2
-eq. and % change
from base year emissions)
2013 - 2020
emission
reduction
target
(% change from
base year)
Kyoto Protocol:
Base year
emissions
(Mt CO
2
-eq.)
Assigned
Amount Units
in Mt CO
2
-eq.
(2013-2020)
Emissions in
Mt CO
2
-eq.
(2013 - 2020)
Over (+) /
Under (-)
achievement
2013 - 2020
emission
reduction
(% change from
base year)
Total GHG emissions,
excluding international
aviation
(EU-27+IS+UK, KP scope)
5 876
-20%
37 604
33 699
3 905
-28%
Under the Kyoto Protocol, Member States also need to account for emissions and removals
from certain activities of land use, land use change and forestry (LULUCF) by applying the
accounting rules of the Kyoto Protocol. Table 4 does not include emissions and removals
from LULUCF. For the EU as a whole, the LULUCF sector has been a net accounted sink in
2013-2020, thereby also contributing to achieving the commitment.
The EU and its Member States have implemented mitigation policies and measures, which
contributed successfully to the reduction of greenhouse gas emissions. These include the EU
Emissions Trading System (EU ETS), the Effort Sharing Decision (ESD) and a wide range of
policies and measures addressing all sectors of the economy. As more action is urgently
needed, the EU is enhancing and extending its climate change policies and measures – to
deliver on the European Green Deal, the Paris Agreement and to ensure that the EU and its
Member States achieve their updated Nationally Determined Contribution (NDC) target of an
economy-wide net domestic emission reduction of at least 55% by 2030 compared to 1990.
11
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4. SUMMARY OF EU’s RESPONSES TO THE SURGE OF ENERGY PRICES AND
THE RUSSIAN AGGRESSION TO UKRAINE
As part of the response to the surge in energy price and the climate of uncertainty created by
Russia’s invasion of Ukraine, the European Commission outlined a number of measures to
address undesirable negative impacts of higher energy prices on households and businesses.
In October 2021, the Commission adopted a first Communication on ‘Tackling rising energy
price’,
15
which included a toolbox that the EU and its Member State could use to address the
immediate impact of price increases, and further strengthen resilience against future shocks.
Short-term national measures included emergency income support to households, state aid for
companies, and targeted tax reductions. Medium-term measures aimed at accelerating the
transition toward a decarbonised and resilient energy system.
In March 2022, the Commission adopted a second Communication proposing collective
European actions to address the root causes of the problem in the gas market with a view to
ensuring security of supply at reasonable prices for next winter and beyond.
16
The
Communication analysed possible options for Member States interventions in the gas and the
electricity market and exceptional EU measures in case of full disruption of gas supplies. It
also included the creation of a Task Force on common gas purchases at EU level, to facilitate
and strengthen the EU’s international outreach to suppliers and proposed a mandatory
minimum level in EU underground gas storage
17
to protect against potential interruptions to
supply. This last measure already reached political agreement between the European
Parliament and EU Member States and already this year, the Member States will need to
reach a minimum 80% gas storage level by 1 November.
In July 2022, in light of the persisting uncertainty in the energy market and in preparation for
possible further disruptions of gas supply, the Commission adopted the Communication
‘Save gas for a safe winter’, a plan for a voluntary gas demand reduction target of 15% from
1 August 2022 to 31 March 2023. To reach that target, the plan outlines various measures
whereby Member States can encourage a decrease in gas demand and consumption by the
public sector, by companies, but also by households, where possible. The Commission also
adopted a proposal for a new Regulation on coordinated demand reduction measures for gas.
The proposal also gives the Commission the possibility to declare a ‘Union alert’ on security
of supply. In such a case, the Council can impose a mandatory gas demand reduction on all
Member States, based on a proposal of the Commission.
15
16
COM(2021) 660 final
COM(2022) 138 final
17
COM/2022/135 final
12
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5. COMMISSION’S ASSESSMENT OF NATIONAL LONG-TERM STRATEGIES
Stable and reliable long-term strategies are essential to help
coordinate a cost-effective
move towards the long-term goal set by the Paris Agreement,
as well as to promote
awareness and ownership of the transformation needed.
Since October 2021, three additional Member States have submitted their long-term strategies
to the Commission: Luxembourg, which set a legally binding climate neutrality target by
2050, Malta and Cyprus that outlined a feasible set of trajectories and measures aimed at
achieving target reductions in GHG emissions. Overall, by October 2022, 23 Member
States
18
have submitted their long-term strategies required by the Governance Regulation.
19
Of these, 14 Member States
20
clearly expressed their aim to achieve climate neutrality or
carbon neutrality
21
by 2050 or before.
22
Others aim to be largely climate neutral
23
or to
achieve reductions of 80-95% by 2050.
Table 5: Summary of the long-term strategies’ main features submitted by the EU Member States
Long-term strategies' main features
Climate neutrality by 2050 or earlier
Modelling projections and scenarios
Emission projections by sectors
Emission removals in LULUCF
Estimated share of renewable
Estimated energy consumption
Estimated investment needs
Socio-economic impacts of transition
Adaptation Policies and Measures
Legally binding long-term goal
AT BE HR CZ DK EE FI FR DE GR HU IT CY LV LT LU MT NL PT SK SI ES SE
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
Notes: in the case of DK and SK, emission projections by sector, the estimated share of renewable and energy consumption, end in 2040
Two third of the strategies have been supported by quantitative projections based on different
modelling scenarios. The national long-term strategies also provide useful information at
sectoral level, which allow strengths and remaining challenges to be identified and
recognised, although coverage varies significantly across Member States or lack details on
the precise scope, notably the expected role of land use and removals (see Table 5). In this
respect, it is worth mentioning that the current land use and forestry EU regulation provides
that Member State may use the managed forest land flexibility only if their long-term strategy
18
BE, CZ, DK, DE, EE, EL, ES, FR, HR, IT, CY LV, LT, LU, HU, MT, NL, AT, PT, SI, SK, FI, SE. LT and HU submitted
an update of their initial strategies in July and September 2021, respectively.
19
Article 15 of Regulation (EU) 2018/1999 stating that MS should submit their LTS by January 2020.
20
AT, DK, ES, FI, FR, HU, IT, LT, LV, LU, PT, SE, SI, SK.
21
While neutrality means by definition that residual emissions are compensated by removals, not all Member States provided
the respective share of emission reductions and removals and the level of ambition for actual reductions varies.
22
FI by 2035 and SE by 2045.
23
DE - it should be noted, however, that the German long-term strategy, as submitted to the Commission in January 2020,
was prepared in 2016. According to the Climate Change Act, as amended in July 2021, Germany now aims at achieving
climate neutrality by 2045.
13
 kom (2022) 0514 - Ingen titel
2635827_0015.png
has included ongoing or planned specific measures to ensure the conservation or
enhancement of forest sinks and reservoirs.
24
The inclusion of the recommended contents
25
also varies across Member States, with gaps in
needs for research, development and innovation, estimated long-term investments, CO
2
intensity of GDP and, to a lesser extent, on the expected contributions of renewable energy,
energy efficiency, and agriculture-specific emission reductions (see Table 5). Some of the
submitted projections appear not to be in line with the stated ambitions. Finally, less than half
of the long-term objectives have been enshrined into national law.
Whereas most of the national strategies received to date reflect the ambition to be climate
neutral by 2050, they do not yet allow to conclude that the long-term strategies are adequate
for the collective achievement of the objectives and targets of the Energy Union. Providing
information on any remaining collective gap would have required a more complete and
detailed set of strategies. This underlines the importance to continue developing policies to
increase and meet ambition over time. Member States are therefore encouraged to consider
updating and, where possible, to increase the ambition of their national long-term strategies.
26
24
25
Article 13.2.(a) and 8.1 of the Regulation (EU) 2018/841.
See Annex IV of Regulation (EU) 2018/1999.
26
For a more detailed assessment of the long-term strategies submitted by Member States, please refer to the
DG CLIMA dedicated website:
https://ec.europa.eu/info/energy-climate-change-environment/implementation-
eu-countries/energy-and-climate-governance-and-reporting/national-long-term-strategies_en
14
 kom (2022) 0514 - Ingen titel
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6. EU GREENHOUSE GAS EMISSIONS BY SECTOR
Figure 2: EU-27 GHG emissions by sector, historical data (1990-2021) and projections (2022-2030).
27
27
Sources: EU greenhouse gas inventory 1990-2020. EU approximated greenhouse gas inventory 2021 (EEA). Member
States projections with ‘existing measures’ reviewed by EEA (2022).
15
 kom (2022) 0514 - Ingen titel
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Figure 3: EU-27 greenhouse gas emissions by sector 2020 (in % of total emissions).
28
The sectors used in
Figure 2
and
Figure 3
correspond to the following IPCC sectors
29
:
-
Energy supply: 1A1, 1B and 1C,
-
Energy use in manufacturing industries: 1A2,
-
Industrial processes and product use: 2,
-
Transport (includes domestic aviation) : 1A3,
-
Other energy use: 1A4, 1A5 and 6,
-
Agriculture: 3,
-
Waste: 5,
-
International aviation: 1.D.1.A
28
29
EU greenhouse gas inventory 1990-2020.
Source: EEA greenhouse gases - data viewer, European Environment Agency.
16
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7. TOTAL GHG EMISSIONS PER MEMBER STATE
Table 6: Total GHG Emissions 2020, excl. LULUCF, including international aviation (Mt CO
2
-eq. and % change
from 1990 and 2005).
1990
EU-27
Austria
Belgium
Bulgaria
Croatia
Cyprus
Czechia
Denmark
Estonia
Finland
France
Germany
Greece
Hungary
Ireland
Italy
Latvia
Lithuania
Luxembourg
Malta
Netherlands
Poland
Portugal
Romania
Slovakia
Slovenia
Spain
Sweden
4901
79
149
99
32
6
200
73
40
72
553
1254
106
95
55
524
26
48
13
3
225
477
60
250
74
19
295
73
2005
4633
94
149
63
30
10
150
70
19
71
567
1010
139
78
73
599
11
23
14
3
224
406
88
147
51
21
454
69
2021
3525
78
115
55
23
9
120
42
13
49
427
780
78
64
62
410
11
21
11
2
174
403
59
115
41
16
298
49
2021/1990
-28%
-1%
-23%
-45%
-27%
47%
-40%
-42%
-67%
-33%
-23%
-38%
-27%
-33%
11%
-22%
-58%
-57%
-14%
-16%
-23%
-16%
-2%
-54%
-44%
-16%
1%
-33%
2021/2005
-24%
-17%
-23%
-12%
-22%
-8%
-20%
-39%
-32%
-32%
-25%
-23%
-44%
-17%
-15%
-32%
-2%
-9%
-21%
-28%
-22%
-1%
-33%
-22%
-19%
-24%
-34%
-29%
17
 kom (2022) 0514 - Ingen titel
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8. GREENHOUSE GAS INTENSITY IN THE EU AND ITS MEMBER STATES
Figure 4: Greenhouse gas emissions intensity (i.e. the ratio between emissions and GDP) in the EU and its
Member States 1990, 2005 and 2021 (g CO
2
-eq./ EUR2015).
30
30
Sources: EU greenhouse gas inventory 1990-2020, EU approximated greenhouse gas inventory 2021 (EEA). GDP in
2015-prices, data from Ameco database (European Commission, DG ECFIN) gap-filled by EEA.
18
 kom (2022) 0514 - Ingen titel
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9. GREENHOUSE GAS EMISSIONS PER CAPITA IN THE EU AND ITS MEMBER
STATES
Figure 5: Greenhouse gas emissions per capita in the EU and its Member States 1990, 2005 and 2021 (tonnes
CO
2
-eq. per capita).
31
31
Sources: EU greenhouse gas inventory 1990-2019, EU approximated greenhouse gas inventory 2020 (EEA). Average
population (total) (Eurostat).
19
 kom (2022) 0514 - Ingen titel
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10. EU ETS EMISSIONS
The EU Emissions Trading System (ETS) is a cornerstone of the EU’s policy to tackle
climate change. It currently covers around 36% of the EU's total GHG emissions, including
close to 9500 power stations and manufacturing plants (i.e. stationary installations) and
flights within the European Economic Area (EEA).
32
Table 7: Verified ETS emissions from stationary installations up to 2021 (Mt CO
2
-eq. and percentage change
from year X-1).
Year
Verified total emissions
from stationary
installations
Change from year x-1
Verified emissions from
electricity and heat
generation
Change from year x-1
Verified emissions from
industrial installations
Change from year x-1
2011
1 904
2012
1 867
-2.0%
2013
1 908
2.2%
1 191
-5.0%
717
17.0%
2014
1 814
-4.9%
1 100
-7.7%
714
-0.4%
2015
1 803
-0.6%
1 091
-0.8%
712
-0.3%
2016
1 751
-2.9%
1 046
-4.1%
705
-1.0%
2017
1 755
0.2%
1 036
-1.0%
719
2.0%
2018
1 683
-4.1%
964
-7.0%
719
0.1%
2019
1 530
-9.1%
822
-14.7%
708
-1.6%
2020
1 356
-11.4%
696
-15.3%
659
-6.9%
2021*
1 335
6.6%
707
8.4%
631
4.6%
1 261
1 254
-0.5%
643
613
-4.7%
*As of 2021, the UK is no longer part of the EU ETS. Verified emissions data for 2021 do not cover the UK,
only power plants in Northern Ireland. To determine the year-on-year comparison, an adjusted value of 2020
verified emissions was used, with the scope reduced in the same way.
Year
Verified total emissions
from aviation
Change from year x-1
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021**
84
53.5
54.8
57.1
61.5
64.4
67.5
68.2
25.2
27.9
-
2.5%
4.1%
7.7%
4.8%
4.8%
1%
-63%
30%
**As of 2021, the UK is no longer part of the EU ETS. Verified emissions data for 2021 cover flights within the
EEA as well as the outgoing flights to Switzerland and to the UK. To determine the year-on-year comparison,
an adjusted value of 2020 verified emissions was used, with the scope reduced in the same way.
32
Including outgoing flights from the EEA to Switzerland and to the UK.
20
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11. EMISSIONS COVERED BY THE EFFORT SHARING LEGISLATION
Emissions from sectors not included in the current EU ETS, such as emissions from
buildings, road transport, agriculture, waste, domestic navigation and small industry, account
for almost 60% of total domestic EU emissions. These emissions are covered by the EU
effort sharing legislation that sets national targets. The Effort Sharing Decision
33
(ESD) sets
national emissions targets for 2020 compared to 2005 levels and annual emissions allocations
(AEAs), which are the emission limits that Member States must stay under for the period
2013-2020.
In 2021, Member States submitted projections in the context of the Regulation (EU)
2018/1999 of the European Parliament and of the Council of 11 December 2018 on the
Governance of the Energy Union and Climate Action. In 2022, three Member States
(Denmark, Ireland, Latvia) and Iceland updated their projections.
The original data have different metrics: historical and projected emissions, ESD targets and
2005 base year emissions are expressed in the Global Warming Potential (GWP) of IPCC’s
4th Assessment Report (AR4), whereas the ESR targets and 2005 base year emissions are in
GWP of the 5th Assessment Report. For comparability, the latter have been approximately
converted into GWP AR4, preserving the level of ambition as expressed in Commission
Implementing Decision (EU) 2020/2126 which sets the annual emission allocations (AEAs)
of each Member State for each year in 2012-2030 under the ESR. For these reasons, the
distances to targets for 2030 are provided here for illustrative purposes only.
Due to UK’s withdrawal from the EU, and the opt-out from the ETS of certain small
installations in some Member States the aggregated targets (AEAs) for the 27 Member States,
as in Commission Implementing Decision (EU) 2020/2126 (which result in -28.7% for the
EU), do not exactly match the current EU-level effort sharing reduction targets expressed in
percent (-30%).
33
Decision No 406/2009/EC.
21
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Table 8: Member States targets, historical and projected emissions under the effort-sharing legislation and
distance to targets in percentage change from 2005 base year emissions.
ESR base year emissions and targets
have been approximately converted into GWP AR4 for comparability. Positive values indicate projected
overachievement while negative values indicate projected underachievement. WEM = with existing measures,
WAM = with additional measures.
ESD
Member State
2018
Austria
Target
Emissions
Distance to target (pp)
Belgium
Target
Emissions
Distance to target (pp)
Bulgaria
Target
Emissions
Distance to target (pp)
Croatia
Target
Emissions
Distance to target (pp)
Cyprus
Target
Emissions
Distance to target (pp)
Czechia
Target
Emissions
Distance to target (pp)
Denmark
Target
Emissions
Distance to target (pp)
Estonia
Target
Emissions
Distance to target (pp)
10%
13%
-3%
10%
14%
-4%
11%
9%
2%
-13%
-12%
-1%
-13%
-14%
1%
-15%
-17%
2%
-18%
-20%
2%
-20%
-23%
3%
-39%
-37%
-2%
-39%
-37%
-2%
7%
-2%
9%
8%
-2%
10%
9%
-5%
14%
-14%
-22%
8%
-14%
-37%
23%
-1%
-1%
-1%
-3%
5%
-8%
-5%
1%
-6%
-24%
-7%
-17%
-24%
-17%
-7%
9%
-7%
15%
10%
-8%
18%
11%
-5%
16%
-7%
-14%
7%
-7%
-19%
12%
18%
19%
-1%
19%
17%
2%
20%
16%
4%
0%
11%
-10%
0%
6%
-6%
-11%
-8%
-4%
-13%
-10%
-3%
-15%
-19%
4%
-35%
-14%
-20%
-35%
-38%
3%
-14%
-11%
-2%
-15%
-12%
-3%
-16%
-18%
2%
-36%
-17%
-19%
-36%
-27%
-9%
2019
2020
ESR
2030
(projections
WEM)
2030
(projections
WAM)
22
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2635827_0024.png
Finland
Target
Emissions
Distance to target (pp)
France
Target
Emissions
Distance to target (pp)
Germany
Target
Emissions
Distance to target (pp)
Greece
Target
Emissions
Distance to target (pp)
Hungary
Target
Emissions
Distance to target (pp)
Ireland
Target
Emissions
Distance to target (pp)
Italy
Target
Emissions
Distance to target (pp)
Latvia
Target
Emissions
Distance to target (pp)
Lithuania
Target
Emissions
Distance to target (pp)
Luxembourg
Target
Emissions
Distance to target (pp)
Malta
-16%
-11%
-5%
-18%
-9%
-9%
-20%
-24%
4%
-40%
-14%
-26%
-40%
-53%
13%
9%
8%
2%
12%
8%
4%
15%
6%
9%
-9%
-11%
2%
-9%
-23%
14%
15%
7%
8%
16%
1%
15%
17%
-1%
18%
-6%
-10%
4%
-6%
-15%
9%
-12%
-17%
5%
-12%
-18%
6%
-13%
-24%
11%
-33%
-29%
-3%
-33%
-40%
7%
-15%
-4%
-12%
-18%
-3%
-15%
-20%
-5%
-15%
-30%
-11%
-19%
-30%
-30%
0%
6%
-10%
16%
8%
-7%
15%
10%
-9%
19%
-7%
-7%
1%
-7%
-22%
15%
-5%
-29%
24%
-4%
-28%
24%
-4%
-31%
27%
-16%
-27%
11%
-16%
-36%
20%
-11%
-9%
-2%
-9%
-7%
-2%
-17%
-15%
-2%
-38%
-29%
-8%
-38%
-29%
-9%
-11%
-14%
3%
-13%
-16%
3%
-14%
-23%
9%
-37%
-31%
-6%
-37%
-31%
-6%
-13%
-12%
-1%
-14%
-13%
-2%
-16%
-17%
1%
-39%
-31%
-8%
-39%
-34%
-5%
23
 kom (2022) 0514 - Ingen titel
2635827_0025.png
Target
Emissions
Distance to target (pp)
Netherlands
Target
Emissions
Distance to target (pp)
Poland
Target
Emissions
Distance to target (pp)
Portugal
Target
Emissions
Distance to target (pp)
Romania
Target
Emissions
Distance to target (pp)
Slovakia
Target
Emissions
Distance to target (pp)
Slovenia
Target
Emissions
Distance to target (pp)
Spain
Target
Emissions
Distance to target (pp)
Sweden
Target
Emissions
Distance to target (pp)
EU 27
Target
Emissions
Distance to target (pp)
Iceland
Target
5%
24%
-19%
-13%
-22%
9%
12%
18%
-6%
-1%
-17%
16%
14%
3%
11%
10%
-8%
19%
3%
-7%
10%
-8%
-14%
6%
-14%
-28%
13%
-7%
-10%
3%
5%
28%
-23%
-14%
-24%
10%
13%
16%
-3%
0%
-15%
15%
16%
0%
17%
12%
-13%
24%
4%
-9%
12%
-9%
-14%
5%
-16%
-27%
11%
-7%
-11%
4%
5%
17%
-12%
-16%
-29%
13%
14%
14%
0%
1%
-21%
22%
19%
2%
17%
13%
-18%
31%
4%
-18%
22%
-10%
-22%
12%
-17%
-32%
15%
-9%
-16%
8%
-19%
50%
-69%
-36%
-31%
-5%
-7%
6%
-13%
-17%
-39%
22%
-2%
5%
-6%
-12%
9%
-21%
-14%
-9%
-5%
-26%
-18%
-8%
-40%
-39%
-1%
-29%
-22%
-6%
-29%
-19%
50%
-69%
-36%
-31%
-5%
-7%
-12%
5%
-17%
-42%
25%
-2%
2%
-4%
-12%
1%
-13%
-14%
-25%
11%
-26%
-38%
12%
-40%
-39%
-1%
-29%
-29%
0%
-29%
24
 kom (2022) 0514 - Ingen titel
2635827_0026.png
Emissions
Distance to target (pp)
Norway
Target
Emissions
Distance to target (pp)
EU-27 + IS + NO
Target
Emissions
Distance to target (pp)
-26%
-3%
-40%
-32%
-8%
-29%
-22%
-7%
-26%
-3%
-40%
-32%
-8%
-29%
-30%
1%
Table 9: Member States approximated emissions for 2021 under the effort-sharing legislation.
ESR annual
emission allocations (AEAs) and base-year emissions have been approximately converted into GWP AR4 for
comparability. In the case of Iceland and Norway, due to data availability, 2021 approximated emissions have
been converted into GWP AR5 to make them directly comparable with the annual emission allocations (AEAs)
under the ESR, as adapted by Protocol 31 to the EEA Agreement.
2021
Emissions
Member state
Austria
Belgium
Bulgaria
Cyprus
Czechia
Germany
Denmark
Estonia
Spain
Finland
France
Greece
Croatia
Hungary
Ireland
Italy
Lithuania
Luxembourg
Latvia
Malta
Netherlands
Poland
Portugal
(MtCO
2
-eq)
2021
AEAs
(MtCO
2
-eq)
Difference
(MtCO
2
-eq)
As percent
of the
base-year
1%
1%
8%
-14%
-1%
5%
6%
1%
1%
5%
2%
5%
7%
8%
-5%
-2%
10%
3%
24%
76%
4%
0%
4%
48.4
69.5
25.5
4.6
61.8
405.7
29.4
6.1
194.8
27.2
327.5
42.7
16.2
46.1
45.2
271.7
14.6
8.1
8.6
1.3
92.7
209.7
40.5
48.7
70.1
27.1
4.0
60.9
428.8
31.7
6.2
197.5
29.0
334.4
45.8
17.5
49.7
42.6
266.6
16.0
8.4
10.7
2.1
98.2
210.4
42.3
0.3
0.5
1.6
-0.6
-0.9
23.2
2.3
0.1
2.7
1.8
6.9
3.1
1.2
3.6
-2.5
-5.0
1.3
0.3
2.0
0.8
5.6
0.7
1.8
25
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2635827_0027.png
Romania
Sweden
Slovenia
Slovakia
Iceland
Norway
EU-27
82.3
29.3
9.9
20.0
2.8
26.6
2139.2
86.1
31.2
11.1
22.8
2.9
25.2
2199.9
3.9
1.9
1.1
2.8
0.1
-1.5
60.6
5%
4%
10%
12%
2%
-5%
2%
26
 kom (2022) 0514 - Ingen titel
2635827_0028.png
Table 10: Annual emissions allocations, historical emissions and distance to targets under the Effort Sharing Decision (Mt. CO
2
-eq.) covering the period 2013 - 2020.
Positive values indicate overachievement, negative values indicate underachievement.
AEAs for the years 2017-2020 were revised in 2017 for all Member States to
reflect updates in methodologies for reporting of GHG inventories. This recalculation ensures maintaining the originally intended effort of each Member State (in % of 2005
emissions). The values of ‘cumulative surplus of AEAs’ are the cumulative annual distances to target and do not take into account cancellations and transfers. 2019 ESD
emissions are based on the ‘Final Review Reports’ from the 2022 annual ESD review. For compliance in 2019, Germany used the flexibility to carry forward part of the AEAs
allocated for 2020. As a result, Germany’s AEAs available for compliance in 2020 are below the allocation set by the legislation.
2005 base
year
emissions
Member State
Austria
AEA
Emissions
Distance to target
Cumulative surplus of
AEAs
Belgium
AEA
Emissions
Distance to target
Cumulative surplus of
AEAs
Bulgaria
AEA
Emissions
Distance to target
2013
2014
2015
2016
2017
2018
2019
2020
52.6
56.8
50.1
2.5
52.1
48.2
3.9
51.5
49.3
2.2
51.0
50.6
0.4
49.5
51.7
-2.1
48.9
50.3
-1.4
48.3
50.2
-1.9
47.8
46.5
1.2
2.5
6.4
8.7
9.0
6.9
5.5
3.6
4.8
78.4
80.3
74.3
4.1
76.9
70.1
6.8
75.3
72.7
2.6
73.8
74.1
-0.3
72.5
70.8
1.7
71.1
74.3
-3.2
69.7
72.0
-2.4
68.2
64.9
1.7
4.1
10.9
13.5
13.2
14.9
11.7
9.4
11.1
26.9
22.1
22.2
4.7
27.2
22.9
4.3
27.5
25.4
2.1
27.7
25.6
2.1
25.9
26.5
-0.6
26.1
26.3
-0.2
26.3
25.8
0.5
26.5
25.7
0.8
27
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Cumulative surplus of
AEAs
Croatia
AEA
Emissions
Distance to target
Cumulative surplus of
AEAs
Cyprus
AEA
Emissions
Distance to target
Cumulative surplus of
AEAs
Czechia
AEA
Emissions
Distance to target
Cumulative surplus of
AEAs
Denmark
AEA
Emissions
40.1
61.7
4.2
17.4
4.7
9.0
11.1
13.3
12.6
12.4
12.9
13.7
19.6
15.1
4.5
19.8
14.7
5.1
20.0
15.6
4.4
20.2
16.0
4.2
18.7
16.7
2.0
18.9
16.2
2.7
19.1
16.1
3.0
19.3
16.5
2.8
4.5
9.6
14.1
18.2
20.3
22.9
26.0
28.8
5.9
3.9
2.0
5.9
3.9
2.0
5.9
4.1
1.9
5.9
4.1
1.8
4.2
4.3
-0.1
4.1
4.2
0.0
4.0
4.4
-0.3
4.0
4.2
-0.3
2.0
4.0
5.8
7.7
7.6
7.5
7.2
7.0
62.5
61.5
1.0
63.2
57.6
5.6
64.0
61.3
2.7
64.7
62.8
1.9
65.2
62.4
2.8
65.9
60.6
5.3
66.5
60.5
6.0
67.2
58.7
8.6
1.0
6.6
9.3
11.2
14.0
19.2
25.2
33.8
36.8
33.7
35.9
32.6
35.0
32.5
34.1
33.1
34.8
32.7
33.9
33.1
33.0
32.1
32.1
30.8
28
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Distance to target
Cumulative surplus of
AEAs
Estonia
AEA
Emissions
Distance to target
Cumulative surplus of
AEAs
Finland
AEA
Emissions
Distance to target
Cumulative surplus of
AEAs
France
AEA
Emissions
Distance to target
Cumulative surplus of
AEAs
Germany
AEA
398.2
33.9
5.4
3.1
3.3
2.5
1.0
2.1
0.7
0.9
1.2
3.1
6.4
8.9
9.9
12.0
12.7
13.6
14.9
6.3
5.8
0.5
6.3
6.1
0.2
6.3
6.1
0.2
6.4
6.2
0.2
5.9
6.2
-0.3
6.0
6.1
-0.2
6.0
6.2
-0.2
6.0
5.9
0.1
0.5
0.8
1.0
1.1
0.9
0.7
0.5
0.6
31.8
31.6
0.2
31.3
30.1
1.1
30.8
29.9
0.9
30.3
31.4
-1.0
30.2
30.1
0.1
29.6
29.9
-0.3
29.1
29.6
-0.6
28.5
28.1
0.4
0.2
1.3
2.2
1.2
1.3
1.0
0.4
0.8
394.1
366.1
28.0
389.5
353.5
35.9
384.4
353.0
31.4
379.4
351.9
27.5
358.2
352.8
5.4
352.9
342.2
10.7
347.7
336.4
11.4
342.5
307.8
34.7
28.0
63.9
95.3
122.8
128.2
138.9
150.3
185.0
472.5
465.8
459.1
452.4
432.3
425.2
432.9
396.0
29
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2635827_0031.png
Emissions
Distance to target
Cumulative surplus of
AEAs
Greece
AEA
Emissions
Distance to target
Cumulative surplus of
AEAs
Hungary
AEA
Emissions
Distance to target
Cumulative surplus of
AEAs
Ireland
AEA
Emissions
Distance to target
Cumulative surplus of
AEAs
Italy
477.8
460.2
12.3
436.8
29.0
444.1
15.1
454.2
-1.7
466.9
-34.5
434.0
-8.8
444.3
-11.3
407.4
-11.4
12.3
41.4
56.4
54.7
20.2
11.3
0.0
-11.4
59.0
62.6
44.2
14.8
59.3
44.4
14.9
59.6
45.4
14.2
59.9
44.9
15.0
59.1
45.4
13.7
59.4
44.7
14.7
59.7
44.7
15.0
60.0
42.9
17.2
14.8
29.6
43.8
58.8
72.5
87.3
102.3
119.4
50.4
48
38.4
12.0
51.5
38.4
13.1
52.6
41.4
11.2
53.8
42.1
11.7
50.1
43.1
6.9
51.0
43.2
7.7
51.9
44.9
7.0
52.8
43.9
8.9
12.0
25.1
36.3
47.9
54.9
62.6
69.6
78.5
46.9
47.1
42.2
4.7
45.8
41.7
4.1
44.6
43.0
1.6
43.5
43.8
-0.3
40.9
43.8
-2.9
39.8
45.4
-5.6
38.7
45.6
-6.9
37.7
44.7
-7.1
4.7
8.8
10.4
10.1
7.1
1.6
-5.3
-12.4
30
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AEA
Emissions
Distance to target
Cumulative surplus of
AEAs
Latvia
AEA
Emissions
Distance to target
Cumulative surplus of
AEAs
Lithuania
AEA
Emissions
Distance to target
Cumulative surplus of
AEAs
Luxembourg
AEA
Emissions
Distance to target
Cumulative surplus of
AEAs
10.1
13.3
8.5
334.5
308.2
273.3
34.8
306.2
265.3
40.9
304.2
273.3
31.0
302.3
270.7
31.6
298.3
270.1
28.1
295.8
278.7
17.1
293.4
274.9
18.5
291.0
254.0
37.0
34.8
75.7
106.7
138.3
166.4
183.5
202.0
239.0
9.3
8.8
0.5
9.4
9.0
0.3
9.4
9.0
0.4
9.5
9.1
0.4
9.7
9.2
0.5
9.8
9.1
0.7
9.9
8.7
1.3
10.0
8.4
1.6
0.5
0.8
1.3
1.7
2.2
2.9
4.1
5.7
12.9
12.4
0.5
13.3
12.9
0.4
13.7
13.3
0.4
14.0
13.9
0.1
14.1
14.1
0.0
14.5
14.3
0.2
14.9
14.3
0.6
15.2
14.0
1.2
0.5
0.9
1.3
1.4
1.4
1.6
2.1
3.3
9.5
9.4
0.2
9.3
8.9
0.5
9.1
8.6
0.5
8.9
8.5
0.4
8.7
8.7
0.0
8.5
9.1
-0.5
8.3
9.2
-0.9
8.1
7.7
0.4
0.2
0.7
1.2
1.6
1.6
1.1
0.1
0.6
31
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Malta
AEA
Emissions
Distance to target
Cumulative surplus of
AEAs
Netherlands
AEA
Emissions
Distance to target
Cumulative surplus of
AEAs
Poland
AEA
Emissions
Distance to target
Cumulative surplus of
AEAs
Portugal
AEA
Emissions
Distance to target
48.6
49.3
38.6
10.7
49.6
38.8
10.8
49.9
40.6
9.2
50.1
41.6
8.6
47.9
40.2
7.7
48.3
40.6
7.7
48.7
41.5
7.2
49.1
38.5
10.5
180
193.6
186.1
7.5
194.9
181.5
13.3
196.1
186.8
9.4
197.4
198.7
-1.3
200.0
211.5
-11.5
201.7
213.0
-11.3
203.4
209.1
-5.6
205.2
205.1
0.1
127.8
122.9
108.3
14.7
120.7
97.9
22.8
118.4
101.1
17.3
116.1
101.3
14.8
114.1
102.3
11.7
111.8
99.7
12.1
109.6
97.1
12.5
107.4
90.2
17.2
1.1
1.2
1.3
-0.1
1.2
1.3
-0.1
1.2
1.3
-0.1
1.2
1.3
-0.2
1.2
1.4
-0.3
1.2
1.4
-0.2
1.2
1.4
-0.3
1.2
1.3
-0.1
-0.1
-0.2
-0.3
-0.5
-0.8
-1.0
-1.2
-1.4
14.7
37.5
54.8
69.6
81.3
93.4
105.9
123.0
7.5
20.9
30.2
29.0
17.4
6.1
0.5
0.5
32
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2635827_0034.png
Cumulative surplus of
AEAs
Romania
AEA
Emissions
Distance to target
Cumulative surplus of
AEAs
Slovakia
AEA
Emissions
Distance to target
Cumulative surplus of
AEAs
Slovenia
AEA
Emissions
Distance to target
Cumulative surplus of
AEAs
Spain
AEA
Emissions
236
11.8
23
75.5
10.7
21.5
30.7
39.3
47.0
54.7
61.9
72.4
75.6
72.7
2.9
77.5
72.5
4.9
79.3
74.6
4.7
81.1
73.1
8.0
84.1
75.4
8.7
86.0
77.6
8.3
87.9
75.2
12.7
89.8
77.1
12.7
2.9
7.8
12.5
20.5
29.2
37.5
50.2
62.9
24.0
21.1
2.9
24.4
19.8
4.6
24.7
20.1
4.7
25.1
19.8
5.3
25.0
21.2
3.8
25.3
21.1
4.3
25.6
20.1
5.6
25.9
18.9
7.1
2.9
7.5
12.2
17.5
21.3
25.6
31.2
38.2
12.3
10.9
1.4
12.4
10.5
1.9
12.4
10.7
1.7
12.4
11.2
1.2
12.2
10.9
1.3
12.2
11.0
1.2
12.3
10.8
1.5
12.3
9.8
2.6
1.4
3.3
4.9
6.1
7.4
8.6
10.1
12.7
227.6
200.3
225.6
199.8
223.7
196.2
221.8
198.5
218.3
201.1
216.3
203.0
214.3
201.9
212.4
184.2
33
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Distance to target
Cumulative surplus of
AEAs
Sweden
AEA
Emissions
Distance to target
Cumulative surplus of
AEAs
United Kingdom
AEA
Emissions
Distance to target
Cumulative surplus of
AEAs
417.8
43.5
27.3
25.9
27.6
23.3
17.2
13.3
12.5
28.2
27.3
53.2
80.8
104.1
121.3
134.5
147.0
175.2
41.7
35.3
6.4
41.0
34.5
6.5
40.4
33.9
6.5
39.8
32.6
7.2
37.8
32.5
5.3
37.2
31.4
5.8
36.7
31.7
5.0
36.1
29.4
6.7
6.4
12.9
19.4
26.6
31.9
37.7
42.7
49.4
358.7
339.5
19.3
354.2
324.4
29.8
349.7
326.0
23.7
345.2
333.9
11.3
360.4
332.1
28.4
357.2
329.9
27.4
354.1
329.1
25.0
350.9
298.9
52.0
19.3
49.1
72.7
84.0
112.4
139.7
164.7
216.7
34
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12. USE OF REVENUES FROM AUCTIONING OF ETS ALLOWANCES
The vast majority of revenue from auctioning ETS allowances accrue to Member States, who
should spend at least 50% on climate and energy purposes.
Figure 6
:
Auctioning revenues and reported usage, 2013-2021 (€ bn), EU-27
Figure 6 shows how the reported revenues have been spent in 2021 and indicates that
renewables support, decarbonisation of transport and other GHG reduction, were the areas
where most of the revenues were spent. Compared to previous years, the increasing share of
“other” spending appears partly linked to new national measures using ETS revenues to
compensate for rising energy prices and mitigate their social impacts.
34
Auctions of EU ETS emission allowances for both stationary installations and aircraft operators
have provided the EU-27 countries with revenues listed in the Table 11.
35
Member States report
annually on the use of auctioning revenues for climate change and energy purposes, under
Article 17 of Regulation (EU) No 525/2013. It should be noted that annual reporting does not
necessarily cover how the revenues of that year are spent, but the spending of revenues during
that year, i.e. it can include revenues from earlier years. Member States only report on spending
for the purposes of addressing climate change and energy, but this does not mean that the
amount not covered in the report is necessarily spent for other purposes: it is also possible that
revenues are spent later, or used to fund many projects/activities, only part of which are linked
to climate change and energy, or that a certain amount has been set aside for climate and energy
but not all of it has yet been formally attributed to specific projects.
34
For instance, between late-2021 and mid-2022 Spain, Italy, Greece, Germany and Estonia announced the direct
or indirect use of ETS revenues for such purposes.
35
The table lists annual total revenues of the auctioned allowances on the
EEX
platform.
35
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In the latter case, and when Member States have reported having a national minimum set aside
for climate and energy, this has been reflected in the “% spent on climate and energy” row.
36
Additionally, multiple Member States do not earmark their auction revenues for a specific
purpose, but instead attribute part or all of their revenues to a broad budget such as the general
budget, that is funded by more than just auctioning revenues, and can be spent on both climate
change and energy and other purposes. Often, in such cases example projects funded by the
broad budget are reported, but a direct link to auctioning revenues cannot be made. Such country
specific contexts are described below. Reported spending can also be higher than the revenues
of that year, if either it includes spending of previous years’ revenues or if the reported projects
were co-funded with other funds.
37
Table 11: Member States' revenues from auctioning of ETS allowances (EUR million), amounts spent on climate
and energy purposes (EUR million) and share of the revenues spent on climate and energy purposes (%), 2013-
2021.
38
Member State
Austria
Revenues from
55.8
53.6
78.6
59.5
79.4
210.4
183.8
184.2
311.0
auctioning
Reported as spent on
36.9
54.8
79.8
59.9
79.2
0
0
986.4
311.0
climate etc.
% spent on climate and
>100% >100% >100% >100% >100% >100% >100% >100% >100%
energy
Revenues are not earmarked. National spending on climate and energy is >100% of auctioning revenues. In
several years, climate and energy projects financed from the national budget were reported, even though their
funding cannot be directly linked to the auctioning revenues.
Belgium
Revenues from
115
97.1
141.6
107.9
144.3
381.5
356.8
356.1
533.2
auctioning
Reported as spent on
0
0
0
37.5
133.1
213.7
357.8
162.6
76.1
climate etc.
% spent on climate and
N/A
N/A
N/A
35%
92%
56%
99%
46%
14%
energy
The policy is that 100% of auctioning revenues are spent on energy and climate projects. The revenues for the
years 2013-2020 have been divided over the regions and the federal government in shares determined by a
cooperation agreement. Work on such an agreement for 2021-2030 is still ongoing. Until completed, revenues
are carried over. The amount spent in 2021 came from both 2020 revenues and anticipated 2021 revenues.
Bulgaria
Revenues from
auctioning
52.6
36.4
121.8
85.3
130.4
368.2
440.3
448.6
832.9
2013
2014
2015
2016
2017
2018
2019
2020
2021
Where relevant, the amount resulting from the “% spent on climate and energy” row that is not covered in the row “Reported
as spent on climate etc.” has been included in Figure 5 of the Climate Action Progress Report as “Used for climate change and
energy, (unspecified)”.
37
For the purposes of Figure 5 of the Climate Action Progress Report and the estimated shares spent on climate and energy, the
annual shares have been capped at 100% in order to avoid distortion of the figures.
38
Data in this table is based on the annual reporting by the Member States with some modifications made to ensure consistency
across all Member States and over the reporting period. In 2020-2022 the harmonisation, methodology and analysis were
conducted by SQ Consult in a study for the European Commission. Proposed modifications have been discussed with the
Member States as part of the quality checks. Notes: “N/A” = Not available, “*” = Member States that do not earmark auction
revenues, “(*)” = Member States that partially earmark auction revenues.
36
36
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Reported as spent on
51.3
36.2
103.5
94.1
138.2
368.2
440.3
448.6
832.9
climate etc.
% spent on climate and
97%
99%
85%
>100% >100% 100%
100%
100%
100%
energy
Unspent revenues are carried over to later years, therefore in some years spending is higher than the revenues.
Croatia
Revenues from
auctioning
Reported as spent on
climate etc.
% spent on climate and
energy
Cyprus
(*)
Revenues from
0.3
0.7
1.4
0.4
6.6
26
26.1
40.1
78.4
auctioning
Reported as spent on
1.9
0.7
2.8
0.3
0.8
6.4
57.5
57.6
75.3
climate etc.
% spent on climate and
>100% 100% >100% 100%
100%
100% >100% >100% 100%
energy
The auctioning revenues go to a fund, which different ministries can use for climate and energy projects. This
fund also receives money from the general budget, so in practice a higher amount than 100% of revenues is
spent on climate and energy overall.
Czechia *
Revenues from
80.7
55.7
111.5
118
199.8
584.4
630.4
719.4
604.0
auctioning
Reported as spent on
73.2
26.9
111.5
118
199.8
367.3
408.4
309.7
296.5
climate etc.
% spent on climate and
91%
48%
100%
100%
100%
63%
65%
43%
49%
energy
Revenues are not earmarked. Reported spending represents the amounts allocated for climate change and
energy projects in the national budget of each year (if this allocation is higher than 100%, it is reported as 100%
of revenues).
Denmark *
Revenues from
auctioning
Reported as spent on
climate etc.
% spent on climate and
energy
Estonia (*)
Revenues from
18.1
7.4
21.3
23.6
39.4
140
142.8
142.4
248.6
auctioning
Reported as spent on
9
3.6
9.5
12.2
15.9
53.3
64.5
30
43.6
climate etc.
% spent on climate and
50%
49%
44%
52%
40%
38%
45%
≥50%
≥50%
energy
50% of the auctioning revenues are earmarked and directed through the four-year State Budget Strategy and
spent on climate and energy projects and measures, which may take multiple years. Unspent revenues are
carried over to later years and always used for climate and energy projects. The remaining 50% goes to the
general budget, which, among others, covers climate and energy investment (not included here).
Finland *
Revenues from
67
63.5
93.8
71.2
95.3
251.8
219.9
220.6
409.0
56.1
56
100%
48.1
48.1
100%
71.3
71.3
100%
53.7
53.7
100%
71.7
71.7
100%
189.8
189.8
100%
166.1
166.1
100%
166.5
166.5
100%
292.9
292.9
100%
N/A
N/A
N/A
N/A
N/A
N/A
86.9
77.5
100%
20.3
46.1
>100%
27.2
18.9
100%
71.5
29
100%
72.7
13.4
100%
72.2
44
100%
112.2
12.3
100%
Revenues are not earmarked, example projects have been reported up to 100% of revenues each year.
37
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2635827_0039.png
auctioning
Reported as spent on
2
31.1
93.8
71.2
9.5
251.8
219.9
220.6
409.0
climate etc.
% spent on climate and
3%
49%
100%
100%
10%
100%
100%
100%
100%
energy
Revenues are not earmarked. National spending on climate and energy is >100% of auctioning revenues. Only a
part of actual spending has been reported, in some years covering specific projects, in other years up to 100% of
revenues, even though this funding cannot be directly linked to the auctioning revenues.
France
(*)
Revenues from
219.2
215.3
312.1
234.7
313.4
829.6
726.5
728.1 1469.1
auctioning
Reported as spent on
219.2
215.3
312.1
234.7
313.4
550
420
728.1 1469.1
climate etc.
% spent on climate and
100%
100%
100%
100%
100%
100%
100%
100%
100%
energy
The auctioning revenues co-fund energy efficiency improvements of low-income housing, up to a ceiling of EUR
420 million per year. The remainder is not earmarked but goes to the general budget, which, among others,
covers climate and energy investments (not included here).
Germany
Revenues from
auctioning
Reported as spent on
climate etc.
% spent on climate and
energy
791.3
790.9
100%
750
750
100%
1110.2
1110.2
100%
850.4
845.6
98%
1146.8
1130.8
99%
2581.7
2563
99%
3164
3147.2
99%
2662.4
2662.4
100%
5306.2
5306.2
100%
100% of revenues is spent on energy and climate projects. All revenues go to a fund for climate and energy
projects, which is additionally co-funded from the general budget.
Greece
Revenues from
auctioning
Reported as spent on
climate etc.
% spent on climate and
energy
Hungary
(*)
Revenues from
34.6
56.5
83.3
63.7
85.2
225.4
228
226.3
288.2
auctioning
Reported as spent on
17.3
13.1
32.8
18.5
68.7
65.9
74
71.8
232.9
climate etc.
% spent on climate and
50%
50%
39%
29%
81%
50%
50%
50%
81%
energy
50% of the revenues are spent on climate and energy (any revenues not spent are carried over to future years)
and the remainder goes to the national general budget. Amounts included in the latter can be spent on climate
change and energy are not covered here.
Ireland *
Revenues from
auctioning
Reported as spent on
climate etc.
% spent on climate and
energy
147.6
147.6
100%
131.1
131.1
100%
195.2
195.2
100%
148.1
148.1
100%
198
198
100%
523.5
523.5
100%
509.5
509.5
100%
506.7
506.7
100%
1014.6
1014.6
100%
Revenues are earmarked and fully spent on domestic climate change and energy projects.
41.7
41.7
100%
36
36
100%
53.5
53.5
100%
40.1
40.1
100%
53.6
53.6
100%
142.1
142.1
100%
124.3
124.3
100%
124.5
124.5
100%
149.2
149.2
100%
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2635827_0040.png
While ETS auction revenues are not earmarked for specific purposes, amounts spent are equivalent to 100% of
these revenue (less ETS administration costs for the Environmental Protection Agency) and are attributed to
emission reduction activities in line with the purposes specified in the ETS Directive.
Italy
(*)
Revenues from
386
366.5
542.4
411.2
549.7 1453.3
1289
1290.5 2520.9
auctioning
Reported as spent on
N/A
192.8
237.7
118.1
383.7
148.4
148.1
506.6 1260.5
climate etc.
% spent on climate and
50%
53%
44%
29%
70%
50%
50%
50%
50%
energy
Italian law guarantees that, 50% of the revenues are used for climate and energy but only after the year has
ended, which can cause underreported spending. The remaining 50% was initially used to compensate for the
depleted phase 2 of the New Entrants Reserve, and later it was allocated to the general budget, which funds,
among others, climate and energy projects (not included here).
Latvia
Revenues from
auctioning
Reported as spent on
climate etc.
% spent on climate and
energy
10.8
0
100%
10.2
0.1
100%
15.3
0.1
100%
11.5
7.4
100%
15.4
3.8
100%
40.7
12.3
100%
42.6
11.4
100%
42.3
5.8
100%
62.4
62.4
100%
100% of revenues go to the EAAI, a national green investment scheme aimed at tackling global climate change.
Reported spending shows actually disbursed amounts per year, all leftovers are carried over to future years.
Lithuania
Revenues from
auctioning
Reported as spent on
climate etc.
% spent on climate and
energy
20
20
100%
17.3
17.3
100%
28.4
28.4
100%
20.8
20.8
100%
31.5
31.5
100%
80.4
80.4
100%
84
83.7
100%
86.6
86.6
100%
86.2
86.2
100%
Revenues are put in a Climate Change fund that is only for climate action and only funded by auctioning
revenues, and spent on climate and energy projects
Luxembourg *
Revenues from
auctioning
Reported as spent on
climate etc.
% spent on climate and
energy
Malta *
Revenues from
4.5
3.9
6.2
4.5
6
15.7
15.9
15.8
30.7
auctioning
Reported as spent on
2.9
5.7
12
9.7
6.9
4.9
9.1
47.2
30.7
climate etc.
% spent on climate and
100%
100% >100% >100% >100% 100%
100% >100% 100%
energy
All revenues go to a fund for climate and energy projects, which is additionally co-funded from the general
budget.
Netherlands *
Revenues from
auctioning
134.2
131.1
187.3
142.6
190.7
504.2
440.1
441.4
894.0
5
2.5
50%
5.2
2.9
56%
6.8
3.5
52%
5.1
2.6
51%
6.9
3.5
50%
18.3
9.2
51%
17.1
17.1
100%
17
17
100%
8.1
8.1
100%
Revenues are not earmarked, example projects have been reported up to 100% of revenues each year.
39
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2635827_0041.png
Reported as spent on
134.2
131.1
187.3
142.6
190.7
504.2
440.1
441.4
0.0
climate etc.
% spent on climate and
>100% >100% >100% >100% >100% >100% >100% >100% >100%
energy
Auctioning revenues go to the national general budget which is used to finance among others climate and
energy projects. Amounts spent are higher than 100% of revenues, but it is not possible to link auctioning
revenues to specific projects funded.
Poland*
Revenues from
auctioning
Reported as spent on
climate etc.
% spent on climate and
energy
Portugal
Revenues from
72.8
67.1
99.2
75.1
100.3
265.6
257.1
255.8
513.9
auctioning
Reported as spent on
71.4
64.8
83.7
72.8
95.1
201.2
235.3
251.3
513.9
climate etc.
% spent on climate and
98%
97%
84%
97%
95%
76%
92%
98%
100%
energy
All revenues from auctioning are channelled to the Environment Fund (alongside other revenues) which is
financing environmental projects that may or may not be directly related to climate objectives. The amounts
reported as spent represent climate change and energy projects paid by the Environmental Fund.
Romania (*)
Revenues from
122.7
97.9
195.2
194
260.8
719.1
749.8
803.1
483.9
auctioning
Reported as spent on
91.2
97.9
195.2
194
0
160
42.7
165.9
226.6
climate etc.
% spent on climate and
74%
100%
100%
100%
0%
22%
6%
17%
47%
energy
50% of revenues is earmarked for climate change and energy purposes and an additional 6% is earmarked for
GHG reduction projects (and 15% goes to indirect carbon cost compensation and 29% to the general budget).
Part of unspent revenues are carried over to later years.
Slovakia
Revenues from
auctioning
Reported as spent on
climate etc.
% spent on climate and
energy
61.7
0.1
0%
57.6
15.1
26%
84.5
30
36%
65
35.6
55%
87.1
40.9
47%
229.9
55.6
24%
244.7
44.6
18%
242.1
27.4
11%
276.2
50.9
18%
244
128.7
53%
78
39
50%
132.8
68.5
52%
136.1
68.1
50%
506
290.4
57%
1211.6
609.9
50%
2548.8
1274.4
50%
3157.6
1564
50%
5593.6
2768.3
49%
Revenues are not earmarked, example projects have been reported for around 50% of revenues each year.
All auctioning revenues are earmarked and go to the Environmental Fund, which also receives money from
other sources. The values reported as spent represent the funding of climate change and energy projects known
at the time of reporting. Part of unspent revenues are carried over to later years.
Slovenia
Revenues from
auctioning
Reported as spent on
climate etc.
% spent on climate and
energy
17.7
4.6
100%
16.6
4.0
100%
24.4
12.6
100%
18.7
25.2
100%
25.1
5.4
100%
66.3
14.2
100%
65.3
40.8
100%
65.0
40.4
100%
130.1
79.9
100%
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2635827_0042.png
100% of the auctioning revenues are used for climate and energy projects. Some projects receive funding later
than in the year in which the auctioning revenues were generated. About EUR 185 million in already received
auction revenues will still be spent on climate and energy.
Spain (*)
Revenues from
346.1
330.1
489.5
369.5
493.6
1306
1245.2 1240.3 2482.9
auctioning
Reported as spent on
346.1
370.2
387.8
390.8
445.5
788.6 1054.1 1081.5 2035.0
climate etc.
% spent on climate and
100% >100%
79%
>100%
90%
60%
85%
87%
82%
energy
Estimated revenues are earmarked for energy and climate project ahead of each year (up to a cap, which was
EUR 500 million up to 2018 and EUR 1100 million after). The remainder goes to the general budget, part of
which also funds climate projects, but are not included here (2013 spending includes phase 3 allowances
auctioned in 2012).
Sweden *
Revenues from
35.7
34.4
52.4
38.6
51.5
136.3
128.5
127.9
222.2
auctioning
Reported as spent on
35.7
18.9
52.4
21.7
28.8
76.5
73.9
65
222.2
climate etc.
% spent on climate and
100%
55%
100%
56%
56%
56%
58%
51%
100%
energy
Revenues are not earmarked, example projects have been reported for at least the minimum required spending
on energy and climate.
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13. EXAMPLES OF FUNDING OF CLIMATE RELATED PROJECTS
Example 1: Stimulating investment
The Swedish Hydrogen Breakthrough Ironmaking Technology (HYBRIT) financed by the
Innovation Fund, aims to create a fossil-free value chain for iron and steel production using
fossil-free electricity and hydrogen. The HYBRIT technology involves replacing the blast
furnace process, which typically uses coal and coke to remove the oxygen from iron ore, with
a direct reduction process using green hydrogen.
Example 2: Stimulating investment
In the chemical industry, the Kairos@C project has received funding from the ETS Innovation
Fund. This project aims to create the first and largest cross-border Carbon Capture and
Storage (CCS) value chain to capture, liquefy, ship and permanently store CO
2
underground
that would otherwise be emitted. This new technology and infrastructure will be located in the
port of Antwerp and is expected to become the cornerstone of Belgium’s decarbonisation
roadmap.
Example 3: Just transition Fund, from plans to territories
Thanks to the first Just Transition Fund (JTF) Programme adopted by the Commission on 16
June 2022, Greece will mobilise a total investment of EUR 1.63 billion to alleviate the impact
of the climate transition on the local economy and society. Greece has engaged in a complete
de-lignitisation process by 2028 with a drastic reduction and complete removal of lignite from
the electricity mix. The Greek programme, which will benefit from grants amounting to EUR
1.38 billion from the JTF, includes three TJTPs. These focus on the phase-out of lignite in
Western Macedonia and in Megalopolis, and on the closure of fossil-fuel power stations in the
islands of North Aegean, South Aegean and Crete.
Just over half of the funds will support entrepreneurship through the financing of existing and
new enterprises, of business infrastructure, and of stronger links between companies and
research and innovation. Another large part of the funds (20.4% of the total) will strengthen
human resources and the skills of the workforce in the affected areas (skilling-upskilling-
reskilling) and promote employment. The JTF support will also target energy transition, land
use adaptation and the circular economy (i.e. energy upgrades, strengthening self-production
through energy communities, renewable energy sources, e-mobility, and energy storage
systems).
Example 4: New European Bauhaus
The New European Bauhaus initiative connects the European Green Deal to our daily lives
and living spaces. It calls on all Europeans to imagine and build together a sustainable and
inclusive future that is beautiful for our eyes, minds, and souls. By creating bridges between
different backgrounds, cutting across disciplines, and building on participation at all levels,
the New European Bauhaus inspires a movement to facilitate and steer the transformation of
our societies along three inseparable values: sustainability, aesthetics, and inclusion.
From 9 to 12 June 2022, Brussels hosted the first Festival of the New European Bauhaus.
Designed around three pillars, Forum, Fair and Fest, the Festival was built with the NEB
community to showcase, celebrate, and develop the movement. Next to the rich programme in
Brussels, the Festival is also spreading throughout Europe, with more than 200 co-created side
events independently organised by partners.
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Example 5: Sustainable land use activities in the Republic of Congo, in the framework of
the Central African Forest Initiative (CAFI)
The Central African rainforest is the second largest in the world, with an area the size of
Western Europe. It represents 30% of the vegetation cover of the African continent. The
conservation and sustainable use of the Congo basin forest represents a major component of
global climate action. In the Republic of Congo, the forest covers about two thirds of the
national territory and stores the equivalent of 10 billion tonnes of carbon dioxide.
This project, funded under the new Neighbourhood, Development and International
Cooperation Instrument (NDICI-Global Europe), aims to operationalize multi-sector,
inclusive, concerted, and integrated spatial planning for land management, with a view to
ensure sustainable management of natural resources and preserve the exceptional natural
heritage of the Republic of the Congo, in accordance with reforms initiated under national
legislation. Starting this year, the project will specifically contribute to (1) develop the
production of deforestation-free and sustainable agricultural commodities, (2) reduce
deforestation and forest degradation resulting from uncontrolled wood-energy supply to large
urban centres, and (3) mobilise finance to develop renewable energy sources., e-mobility, and
energy storage systems).
Example 6: Horizon Europe Mission for Adaptation to Climate Change
The Horizon Europe Mission for Adaptation to Climate Change engages actively with
communities to meet their unique needs in accelerating adaptation. A key cross-cutting
element is working with nature and with ecosystems to make cities, regions, coastlines, river
basins, or forests more resilient.
The Mission also aims to deliver at least 75 large-scale demonstrators of systemic
transformations on the ground. The knowledge and tools developed under the Mission’s aegis
and the insights from the funded projects will be made openly available, to support the
scaling-up of adaptation solutions beyond the active partners.
To identify interested parties, the Mission launched a Mission Charter for regional and local
authorities. Signatories declare their willingness to cooperate, mobilise resources and develop
activities in their respective region and communities to reach their adaptation goals, and will
receive targeted support via the Mission Implementation Platform. The first 118 regions and
local authorities that will sign the Charter were announced on 7 June 2022 during the Mission
Forum.
Example 7: Alliance for Zero-Emission Aviation
To prepare for the advent of hydrogen-powered and electric aircraft the Commission on 24
June 2022 launched the Alliance for Zero-Emission Aviation and invited actors from across
aviation to join. The European aeronautical industry is working on a new generation of
aircraft in the commuter, regional and medium-haul segments that will fly on hydrogen or
battery-electric power, and these aircraft are expected to enter into service in the coming
decade. The Alliance for Zero-Emission Aviation will pin-point what action needs to be taken
where and by when. It will also help attract the required investments.
Example 9: TANGO project funded by the Innovation Fund
Located in Catania, the 3Sun factory is one of the largest solar panel production plants in
Europe. It’s the first of its kind in Europe to mass produce bifacial panels with heterojunction
technology (HJT). Bifacial panels can capture sunlight from their back surface too, which
means they are far more efficient than traditional ones because more clean energy is produced
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without major additional cost. They are also stronger and last longer, which lowers the
consumption of raw materials.
The TANGO project will be carried out by ENEL Green Power, one of the largest operators
in the renewable energy sector in the world. TANGO aims to expand the 3Sun factory and
turn it into the GigaFactory, the first European industrial-scale manufacturing plant for highly
innovative solar panels. The production capacity will reach 3 GW per year. What does this
mean in practice?
3 GW of panels can generate around 5,5 GWh of renewable electricity per year,
roughly the annual consumption of two million Italian households.
The panels produced during the project’s first ten years of operation will avoid the
equivalent of 25 million tonnes of CO
2
, amounting to more than 30% of all GHG
emissions from public electricity and heat production in Italy in 2019.
Additionally, the future GigaFactory will create around 1000 jobs by 2024.
Example 10: LIFE-IP PAF Wild Atlantic Nature project - Protecting and restoring
Ireland's blanket bog
The project (2020-2028) aims to address the identified obstacles, gaps and shortcomings that
currently prevent the full implementation of the Prioritised Action Framework (PAF) for
Natura 2000 on 24 sites with respect to Ireland’s blanket bogs in the Northern and Western
Region covering an area of over 200 000 hectares. The overall status of conservation of the
blanket bog has been declining mainly due to inappropriate agricultural practices, peat
cutting, forestry plantations and invasive species. To address this trend, this project has
facilitated the development of a Results-Based Agri-environment Payment Scheme in the
Northwest of Ireland, involving c.750 farmers and over 40 agricultural advisors, to reward
high quality peatland habitats and incentivise the improvement of poorer quality habitats. This
approach forms the basis of the new Cooperation Approach of Ireland’s CAP Strategic Plan,
which will be rolled out to over 300 000 hectares from 2023.
Example 12: LIFE CLIMARK – Promoting sustainable forest management
Sustainable forest management is a key tool to maintain and enhance the mitigation capacity
of forests. The LIFE CLIMARK project (2016-2022), located in Catalonia (Spain) and
replicated in Veneto (Italy), designed a local market of ‘climatic credits’ to promote
multifunctional forest management in a rural abandonment context. Climatic credits are
defined by assessing the impact of locally identified forestry practices on climate mitigation,
water flow regulation and biodiversity. CLIMARK applied climatic credits on almost 88
hectares of diverse Mediterranean forest typologies and developed tools to facilitate their
replication in other European regions.
Example 13: LIFE HEATLAND – An innovative pavement to mitigate the urban heat
island effect
LIFE HEATLAND (2017-2021) demonstrated the effectiveness of an innovative cool
pavement technology that increases the resilience to climate change in urban areas by
reducing the urban heat island (UHI) effect. The cool pavement was installed in an urban area
of Murcia, reducing the ambient temperature by 1.5ºC and the surface temperature of the
pavement by 7-11ºC. In addition, this technology helped reduce the noise level and energy
consumption for street lighting thanks to its higher reflection properties. In November 2021,
the Barcelona City Council decided to join this initiative, carrying out an additional test of the
cool pavement.
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Example 14: LIFE PASTORALP – Making alpine pasture agriculture resilient to
climate change
LIFE PASTORALP (2017-2022) aimed to reduce the vulnerability and increase the resilience
of alpine pasture agriculture in the areas of the Parc National des Ecrins in France and the
Parco Nazionale Gran Paradiso in Italy by assessing and testing adaptation measures,
increasing capacity building and developing improved management strategies for climate
change adaptation. PASTORALP deployed platform tools to facilitate the adoption of
adaptation strategies in the Western Alps and their replication in other pastoral areas,
including maps of pastoral resources, data on the impact of climate change and monitoring of
biodiversity. Moreover, two pastoral areas, purchased by the Gran Paradiso National Park,
will be used to demonstrate management strategies against climate change. Policy
recommendations could also contribute to the definition of eco-schemes in the future common
agricultural policy (CAP).
Example 15: LIFE Retradeables - Recover, Recycle and Re-use of F-gases
LIFE Retredeables (2020-2023) aims to create an innovative circular economy ecosystem for
F-gases to reduce industry emissions and increase F-gas compliance and safety. The project is
developing a self-certification platform, with reliable F-gas declarations for
composition/recovery/recycling and establishing a new market for recycled F-gases in
Europe, where gas distributors offer transparent and reliable trades for recovered F-gases in
real time onsite. By fostering the use of high-quality, cost-efficient recycled F-gases and
providing an accurate database of information for regulation compliance, LIFE Retradeables
offers an easy and secure solution to put recovered F-gases back on to the market. The project
includes activities to support EU companies to identify reclamation opportunities, raise
awareness and improve industry knowledge about the development of effective climate
change mitigation.
Example 16: Examples of measures with fulfilled milestones and targets
France has put in place investments to support energy-efficiency renovation and major
rehabilitation of private and social housing.
Italy introduced new legislation to promote biomethane production and consumption.
Spain introduced a reform to set up an enabling framework for the integration of
renewables into the energy system: networks, storage and infrastructure.
Portugal approved a reform supporting the implementation of the Innovation Agenda
for Agriculture 2030, targeting R&I to the needs of the agricultural sector, food and
agro-industry, and has opened a first call for tender on investments to support the
decarbonisation of industry.
Greece passed a reform to set up a framework for the installation and operation of
charging infrastructure for electric vehicles.
Croatia adopted programmes for energy efficiency of buildings and to reduce energy
poverty, introduced an Energy Efficiency Programme for decarbonising the energy
sector and adopted the Alternative Fuels for Transport Act.
Romania demonstrated that a first target of 1695MW of coal/lignite-fired installed
electricity production capacity have been decommissioned, as part of the replacement
of coal in the national energy mix.
Example 17: Horizon Europe FIREURISK
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The Horizon Europe FIREURISK project (2021-2025) is working on improving our
understanding of the vulnerability and resilience of European communities and countries
against the increasing wildfire risk conditions. Such risks comprise human casualties, cultural
and economic losses, social disruption, major infrastructure damage, and deterioration of
natural capital and biodiversity. The main objective of FIREURISK is therefore to develop,
test, and disseminate an integrated, science-based strategy for wildfire risk management in
Europe.
46