Report from the Commission - Progress towards achieving the Kyoto objectives (required under Decision 280/2004/EC of the European Parliament and of the Council concerning a mechanism for monitoring Community greenhouse gas emissions and for implementing the Kyoto Protocol) {SEC(2006) 1412}
Date: 2006-10-27
Institutions: European Commission
Subjects: EU environmental policy, greenhouse gas, reduction of gas emissions, report

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 27.10.2006 
COM(2006) 658 final 

REPORT FROM THE COMMISSION 

PROGRESS TOWARDS ACHIEVING THE KYOTO OBJECTIVES 

(required under Decision 280/2004/EC of the European Parliament and of the Council 
concerning a mechanism for monitoring Community greenhouse gas emissions and for 
implementing the Kyoto Protocol)  

{SEC(2006) 1412} 

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TABLE OF CONTENTS 

1. 

2. 

2.1. 

2.2. 

2.3. 

2.4. 

3. 

Summary ...................................................................................................................... 3 

Actual progress 1990-2004 .......................................................................................... 5 

GHG emission trends ................................................................................................... 5 

Greenhouse gas emissions intensities in 2004 ............................................................. 5 

GHG emissions in 2004 compared to 2003 ................................................................. 6 

Emission trends in the main economic sectors ............................................................ 6 

Projected Progress 1990-2008/2012 .......................................................................... 10 

3.1. 

Projections by Member States.................................................................................... 10 

3.1.1.  EU-25 ......................................................................................................................... 10 

3.1.2.  EU-15 ......................................................................................................................... 12 

3.1.3.  EU-10 ......................................................................................................................... 12 

3.1.4.  Acceding and candidate countries.............................................................................. 12 

3.2. 

3.3. 

3.4. 

3.5. 

Implementation of the European Climate Change Programme (ECCP).................... 12 

Implementation of the EU Emissions Trading Scheme (ETS) .................................. 13 

Projected use of Kyoto mechanisms .......................................................................... 13 

Projected use of carbon sinks..................................................................................... 14

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1. 

SUMMARY 

Under  the  Kyoto  Protocol,  the  European  Community  (EC)  has  agreed  to  reduce  its 
greenhouse  gas  (GHG)  emissions  by  8%  by  2008–12,  from  base  year  levels1.  Based  on  the 
latest (2004) available inventory data, total GHG emissions in the EU-15, without Land Use, 
Land Use Change and Forestry (LULUCF) were 0.9% lower, and with LULUCF 3.0% lower, 
than  the  base  year.  Compared  to  2003,  EU-15  GHG  emissions  increased  by  0.3%  in  2004. 
Projections data based on Member State (MS) submissions up till June 6th, indicate that the 
EC will reach its Kyoto target, but only under the conditions that: 
•  all additional measures currently under discussion2 at a European or at a national level are 

fully put into force in time to influence the emissions during the commitment period 

•  Kyoto mechanisms will be used to the full extent planned 
•  removals  from  Article  3.3  and  3.4  activities  (carbon  sinks)  contribute  to  the  extent 

projected by the MS 

The  divergence  between  projected  and  actual  emissions  clearly  indicates  that  MS  need  to 
accelerate  their  efforts  in  implementing  policies  and  measures  as  planned.  One  of  the 
cornerstones  of  EU  climate  change  policy  is  the  EU  Emissions  Trading  Scheme.  MS  are 
currently in the process of submitting their 2nd National Allocation Plans (NAPs) which will 
cover  the  period  2008-2012.  Less  than  two  years  ahead  of  the  start  of  the  Kyoto's  1st 
commitment period, it is of crucial importance that MS use their NAPs to ensure that they will 
meet their reduction obligations. 

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2 

In  Council  decision  (2002/358/EC),  which  applies  to  the  EU-15  Member  States  only,  the  various 
commitments of the MS are expressed as percentage changes from the base-year. In 2006 the respective 
emission  levels  will  be  expressed  in  terms  of  tonnes  of  CO2eq.  In  this  connection,  the  Council  of 
Environment Ministers and the Commission have, in a joint statement, agreed to take into account inter 
alia the assumptions in Denmark’s statement to the Council Conclusions of 16–17 June 1998 relating to 
base-year emissions. 
Existing policies and measures are those for which one or more of the following applies: (a) national 
legislation  is  in  force;  (b)  one  or  more  voluntary  agreements  have  been  established;  (c)  financial 
resources  have  been  allocated;  (d)  human  resources  have  been  mobilised;  (e)  an  official  government 
decision  has been  made  and there  is  a  clear  commitment  to  proceed with  implementation.  Additional 
(planned) policies and measures are options under discussion with a realistic chance of being adopted 
and implemented in time to influence the emissions during the commitment period. 

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Figure 1: Actual and projected emissions for EU-25 and EU-15 

EU-25 emissions

EU-25 existing measures

EU-25 additional
measures
EU-15 emissions

EU-15 existing measures

EU-15 additional
measures
EU-15 target (Kyoto)

Business as usual

Linear target path

Kyoto mechanisms and
carbon sinks

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Total EU-253 GHG emissions were, in 2004, 7.3% below base year levels without emissions 
and  removals  by  LULUCF.  EU-25  greenhouse  gas  emissions  rose  in  2004  for  the  second 
consecutive year by 0.4% compared to 2003 - and are now on the highest level since 1997, 
when the Kyoto Protocol was adopted.  

By 2010, total EU-25 GHG emissions are projected to be about 4.6% below base-year levels 
taking into account all existing domestic policies and measures that have already been agreed. 
The  projected  reduction  is  8.1%  with  additional  domestic  policies  and  measures  which  are 
already  under  discussion  and  10.8%  when  the  Kyoto  mechanisms  and  carbon  sinks  are 
accounted for. 

By 2010, two MS out of the EU-15, Sweden and the United Kingdom, are on track to achieve 
their targets in 2010 using only existing domestic policies and measures. In addition, 6 MS are 
projected  to  reach  their  targets  with  the  additional  domestic  policies  and  measures  that  are 
already  being  discussed,  the  use  of  the  Kyoto  mechanisms  and  carbon  sinks.  Seven  MS 
(Austria,  Belgium,  Denmark,  Ireland,  Italy,  Portugal  and  Spain)  project  that  they  will  not 
reach  their  targets  employing  all  measures  included.  They  will  have  to  identify  further 
emission reduction policies and measures4. 

3 

4 

The base-year emissions for the analysis in this report are calculated by adding base-year emissions of 
23 Member States as Malta and Cyprus have no targets under the EU-15 burden sharing agreement or 
under  the  Kyoto  Protocol.  These  EU-23  base  year  emissions  have  no  legal  status  under  the  Kyoto 
Protocol or current EU legislation. 
Based on information available to the Commission as of June 6th 2006. With the 2nd National Allocation 
Plan  under  the  EU  ETS  Member  States  will  provide  updated  projections  and  plans  on  policies  and 
measures to be implemented in order to meet their targets. 

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By 2010, all eight new MS are projected to meet or even over-comply with their Kyoto targets 
with  existing  domestic  policies  and  measures.  However,  in  most  countries  emissions  will 
increase  between  2004  and  2010.  Slovenia  projects  that  it  will  meet  its  Kyoto  target  with 
additional policies and measures discussed and carbon sinks. 

2. 

ACTUAL PROGRESS 1990-2004 

2.1. 

GHG emission trends  

Under the EU monitoring mechanism all EU-15 MS provided GHG inventory data for 1990 
to 2004  for  all gases.  Three  MS  have  gaps for either  a few years or gases (Greece,  Ireland, 
Luxembourg). Most new MS provided GHG inventory data for 1990 to 2004. For many, gaps 
exist in reporting on fluorinated gases.  

MS  show  large  variations  in  GHG  emission  trends.  The  overall  EC  GHG  emissions  are 
dominated  by  the  two  largest  emitters  Germany  and  the  United  Kingdom,  accounting  for 
about one third of total EU-25 GHG emissions. These two MS achieved total GHG emission 
reductions of 316 million tonnes compared to 1990. 

Italy  and  France  are  the  third  and  fourth  largest  emitters  with  shares  of  12%  and  11% 
respectively. Italy’s GHG emissions were about 12% above 1990 levels in 2004. Italian GHG 
emissions increased since 1990 primarily from road transport, electricity and heat production 
and petrol-refining. France’s emissions were 1% below 1990 levels in 2004. In France, large 
reductions  were  achieved  in  N2O  emissions  from  the  adipic  acid  production,  but  CO2 
emissions from road transport increased considerably between 1990 and 2004. 

Spain  and  Poland  are  the  fifth  and  sixth  largest  emitters  in  the  EU-25  each  accounting  for 
about 9% and 8% of total EU-25 GHG emissions respectively. Spain increased emissions by 
48% between 1990 and 2004. This was largely due to emission increases from road transport, 
electricity  and  heat  production,  and  manufacturing  industries.  Poland  decreased  GHG 
emissions by 16% between  1990  and 2004 (-32% since the base year, which is 1988 in the 
case of Poland). Main factors for decreasing emissions in Poland — as for other new MS — 
was  the  decline  of  energy  inefficient  heavy  industry  and  the  overall  restructuring  of  the 
economy in the late 1980s and early 1990s. The notable exception was transport (especially 
road transport) where emissions increased by about 16%.  

In 2004, 10 MS had GHG emissions above base year levels whereas the remaining 13 MS had 
emissions  below  base  year  levels  (Cyprus  and  Malta  do  not  have  a  Kyoto  target).  The 
percentage  changes  of  GHG  emissions  from  the  base  year  to  2004  range  from  – 60% 
(Lithuania) to + 48% (Cyprus and Spain). The new MS share of the total 2004 emissions was 
15%. 

2.2. 

Greenhouse gas emissions intensities in 2004 

In the EU-25, the annual GHG emissions per capita decreased by 1 tonne from 1990 to 2004, 
corresponding  to  a  decline  of  9%.  In  the  EU-15,  GHG  emissions  per  capita  decreased  by 
about 6%, largely due to reductions in Germany and the UK.  

Despite substantial decreases exceeding  those of  the  EU-15,  per  GDP  emissions  of  the  new 
EU  MS  remain  well  above  the  EU-15  average.  This  indicates  potential  in  the  new  MS  for 
economic growth at further declining GHG emissions. GHG emissions per GDP for the EU-
15 decreased by 25% in the period 1990-2004. This continuous decline indicates decoupling 
of GHG emissions and economic growth.  

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Figure 2: GHG emissions, GDP, energy consumption and CO2 emissions for the EU-15 

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CO2 emissions

GDP

Energy consumption

GHG per GDP

2.3. 

GHG emissions in 2004 compared to 2003 

The increase in GHG emissions 2003-2004 was mainly due to: a) higher CO2 emissions from 
road  transport  (+1.5%),  iron  and  steel  production  (+5.4%),  and  oil  refining  (+3.3%),  and  b) 
higher  HFCs  emissions  from  refrigeration  and  air  conditioning  (+12.1%).  In  road 
transportation the substantial increase of CO2 from diesel consumption (+5%) was only partly 
offset by the decrease of CO2 from gasoline consumption (-3.2%). 

Substantial  decreases  in  GHG  between  2003-  2004  were  noted  among  other  in:  a)  CO2 
emissions from households and services (-1.4%), and electricity and heat production (-0.3%) 
and b) CH4 emissions from landfills (-4.3%), coal mining and handling (-16.5%).  

Between 2003 and 2004, Spain and Italy saw the largest emission increases in absolute terms. 
Spanish  emission  increases  mainly  occurred  in  CO2  from  electricity  and  heat  production, 
energy  consumption  in  other  manufacturing  industry,  road  transport,  and  iron  and  steel 
production. The strong increase from electricity and heat production reflects a strong increase 
of  thermal  electricity  production  partly  due  to  low  hydro  power  generation.  In  Italy  CO2 
emissions  increased  mostly  from  oil  refining  and  road  transport.  On  the  positive  side,  2004 
saw  emission  reductions  from  Germany,  Denmark,  and  Finland.  The  German  emission 
reductions occurred primarily in CO2 from households and services and public electricity and 
heat production, whereas CO2 emissions from iron and steel production increased. Danish and 
Finnish emission reductions are mainly due to CO2 from electricity and heat production which 
reflects higher hydro power production in the Nordic electricity market. 

2.4. 

Emission trends in the main economic sectors 

The most important sector is ‘Energy’ (including transport) which accounted in 2004for 80% 
of  total  EU-15  emissions,  a  3.8%  increased  compared  to  1990.Transport  is  responsible  for 
24%  of  the  energy-related  emissions.  Then  follows  ‘Agriculture’  responsible  for  9%  of  the 
emissions  and  Industrial  processes’  responsible  for  8%.  The  2004  increase  in  EU-15 
emissions  was  mainly  due  to  higher  CO2  emissions  from  road  transport,  iron  and  steel 
production  and  oil  refining,  as  well  as  increased  emissions  of  hydrofluorocarbons  (HFCs) 

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from  refrigeration  and  air  conditioning.  On  the  positive  side,  there  were  reductions  in 
emissions of methane from landfills and from coal mining and handling. 

The increase in 2004 in the energy sector was due to road transport while CO2 emissions from 
households and services, and from electricity and heat production decreased. The increase in 
the  energy  sector  in  2004  was  offset  by  decreases  in  all  other  source  categories:  emissions 
from  ‘Industrial  processes’  decreased  by  16%,  emissions  from  ‘Agriculture’  by  10%, 
emissions from ‘Waste’ by 33% and emissions from ‘Solvent and other product use’ by 20% 
compared to 1990. 

Figure 3: Change in EU-15 GHG emissions by sector base year-2004, sector projections 
with existing and with additional measures, base year-2010 and share of sectors in 2004 

Energy excl. transport

-2,4%

Transport

Industrial processes

Agriculture

Waste

-33%

Energy excl. transport

Transport

Industrial processes

-16%

-10%

-2,1%

-3,6%

Agriculture

-16%

Waste

-45%

Energy excl. transport

-7%

Transport

Industrial processes

Agriculture

Waste

-47%

-10%

-16%

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26%

27%

35%

Agriculture
9%

Waste
3% Solvents / 

Other
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Industrial 
processes
8%

Transport
21%

2004

Energy use 
excluding 
transport
59%

-60%

-40%

-20%

0%

20%

40%

Source: EEA. 

Energy supply and use, excluding transport 

•  Between  1990  and  2004,  CO2  emissions  from  public  electricity  and  heat  production 
increased  by  6%  due  to  an  increase  of  35%  in  electricity  production  in  thermal  power 
plants. 

•  Between 1990 and 2004, the rise in energy demand exceeded the increase in emissions in 
all  EU-15  Member  States.  Sweden,  France  and  the  UK  were  most  successful  at 
accomplishing  a  decoupling  of  emission  levels  and  demand.  In  Germany  and  the  United 
Kingdom, emission decreases were mainly due to improved efficiency in Germany’s coal-
fired  power  plants  and  to  the  fuel  switch  from  coal  to  gas  in  power  production  in  the 

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United Kingdom. The remarkable decoupling between thermal power production and CO2 
emissions in Sweden was mainly due to a shift towards biomass. 

•  On current trends, electricity from renewable energy sources will probably achieve a share 
of 19 % by 2010. The renewable energy target for the EU-15 is 22% of gross electricity 
consumption, and for the EU-25, 21% of gross electricity consumption.  

•  In the EU-15, the share of combined heat and power (CHP) in total electricity production 

declined from 10% in 2000 to 9% in 2002.  

•  CO2 emissions from households increased by 3% from 1990 to 2004, while the number of 
dwellings increased by 12% up till 2000. Thus, this shows some decoupling. Remarkably, 
Denmark, Finland and Sweden reduced their household fuel use as a result of the increase 
of  district  heating.  In  Germany,  efficiency  improvements  through  thermal  insulation  of 
buildings and fuel switch in particular in eastern German households, solar thermal energy 
production and biomass district heating were largely responsible for CO2 reductions from 
households. 

Transport 

•  Between  1990  and  2004,  EU-15  GHG  emissions  from  domestic  transport  increased  by 
26% with emissions from transport by road increasing also by 26% over the same period. 
Only,  Finland,  Germany,  Sweden  and  the  UK  saw  a  small  increase  of  their  transport 
emissions. 

•  EU-15  GHG  emissions  from  domestic  transport  are  projected  to  increase  by  35%  from 

1990 levels by 2010 using only existing domestic policies and measures5.  

•  Passenger  transport  by  road  increased  by  27%  between  1990  and  2004  and  freight 

transport by road by 51% between 1990-2003. 

•  The average CO2 emissions of new passenger cars were reduced by about 12% from 1995 
to  2004,  but  21%  more  cars  were  sold  in  the  same  period.  This  increase  thereby  offset 
efficiency gains in new cars.  

•  EU-15  CO2  emissions  from  international  aviation  and  maritime  transport  (not  addressed 

under the Kyoto Protocol) have increased by 59% between 1990 and 2004.  

•  EU-10  emissions  from  transport  have  decreased  by  6%  between  the  base-year  level  and 
1995, but increased sharply afterwards. By 2004 these emissions exceeded base-year levels 
by 28%.  

5 

EU-15  GHG  emission  projections  from  transport  are  missing  for  Germany,  and  from  agriculture, 
industrial processes, and waste management are missing from both Germany and Luxembourg. 

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Agriculture 

•  Overall,  EU-25  GHG  emissions  from  agriculture  fell  by  13%  between  1990  and  2004 
despite the fact that they increased in Spain, Portugal, Cyprus, Malta and Poland. The main 
reasons for declining agricultural emissions were decreasing cattle numbers and declining 
fertiliser and manure use. 

•  Based on existing domestic policies and measures, EU-15 GHG emissions from agriculture 

are projected to decrease to 16% below the 1990 level in 2010.  

Industry (non-energy related) 

•  EU-15  GHG  emissions  from  industrial  processes  (carbon  dioxide,  nitrous  oxide  and 
fluorinated  gases)  were  reduced  by  16%  compared  to  base  year  levels.  In  2010,  they  are 
projected  to  rise  again  to  4%  below  base  year  levels  with  existing  domestic  policies  and 
measures  and  would  remain  only  slightly  above  2004  levels  with  additional  domestic 
measures.  

•  The  emissions  increase  in  2004,  compared  to  2003,  was  due  to  increases  in  cement 
production  in  France,  Germany  and  Italy  and  increases  in  HFC  consumption  from 
refrigeration and air conditioning equipment in Germany and Italy. 

•  EU-15  hydrofluorocarbon  emissions  from  refrigeration  and  air  conditioning,  currently 
accounting for 1% of total EU-15 GHG emissions, increased by a factor of nine between 
base year and 2004. 

•  EU-15 nitrous oxide emissions from chemical industries decreased by 55% between 1990 

and 2004.  

Waste management 

•  EU-15 CH4 emissions from landfills fell by 38% between 1990 and 2004.  

•  Most  EU-15  Member  States  reduced  GHG  emissions  from  waste  management  between 
1990  and  2004;  only  Ireland,  Italy,  Portugal  and  Spain  showed  emission  increases.  The 
emission  reductions  from  waste  management  were  partly  achieved  due 
the 
to 
implementation of the landfill waste directive and similar legislation in Member States. 

•  EU-15  GHG  emissions  from  the  waste  sector  are  projected  to  be  more  than  40%  below 

1990 levels by 2010 (with existing policies and measures). 

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3. 

PROJECTED PROGRESS 1990-2008/2012 

This assessment contains information on the 25 EU MS, but is most detailed for the EU-15. 
The  assessment  of  whether  MS  are  on  track  to  reach  their  targets  is  based  mainly  on  an 
analysis  of  domestic  policies  and  measures  at  EU  level  that  have  already  been  agreed. 
Updated  projections  were  available  from  18  MS.  Information  on  the  use  of  flexible 
mechanisms under the Kyoto Protocol was available for 19 MS (Hungary, Poland, Latvia and 
Lithuania did not submit any information). This year for the first time, activities concerning 
LULUCF (‘carbon sinks’) under Articles 3.3 and 3.4 of the Kyoto Protocol were included as 
reported by a total of 14 MS. Reporting on the use of carbon sinks has substantially improved, 
partly due to reporting duties towards the UNFCCC in 2006.  

3.1. 

Projections by Member States 

3.1.1.  EU-25  

By 2010, total EU-25 GHG emissions are projected to be about 4.9% below base-year levels. 
This projection is based on MS’ own estimates which take into account all existing domestic 
policies  and  measures.  The  projected  decline  is  8.1%  with  additional  domestic  policies  and 
measures  under  discussion  and  10.8%  when  the  Kyoto  mechanisms  and  carbon  sinks  are 
accounted  for.  Emissions  are  expected  to  increase  between  2004  and  2010  without  the 
implementation of additional domestic policies and measures.  

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Figure 4: Distance to Kyoto target indicating the relative gap (over-delivery or shortfall) 
between  GHG  projections  for  2010  and  the  respective  2010  targets  based  on  ‘existing’ 
and ‘additional’ domestic policies and measures, including the use of Kyoto mechanisms 
and carbon sinks  

EU-15

Luxembourg

United Kingdom

Sw eden

Finland

Netherlands

Greece

France

Germany

Italy

Belgium

Portugal

Ireland

Austria

Denmark

Spain

Estonia

-52.0

0.0

-18.0

-11.3

-7.9

-4.0

-2.8

-0.1

0.0

0.0

0.7

0.9

3.1

6.4

6.5

18.0

27.4

Lithuania

Latvia

Hungary

Czech Republic

Slovakia

Poland

Slovenia

- 60

-42.5

-40.6

-22.8

-19.4

-16.8

-6.1

-2.0

- 50

- 10
Percentage points over-delivery (-) or shortfall (+) of respective em ission target

+ 20

+ 30

+ 10

- 40

- 30

- 20

0

+ 40

With existing domestic measures

With additional domestic measures

With all measures and Kyoto mechanisms

With all measures, Kyoto mechanisms and 
carbon sinks

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3.1.2.  EU-15  

The aggregate projections based on existing domestic policies and measures show that GHG 
emissions of the EU-15 in 2010 will only be 0.6% below base-year levels (7.4% distance from 
the Kyoto target). Additional measures discussed as reported by MS are measures promoting 
electricity  generation  from  renewable  energy  sources,  cogeneration  and  energy  efficiency. 
These  additional  domestic  measures  have  the  potential  to  reduce  the  gap  by  4.0%  down  to 
3.4%. Still, emission reductions achieved through domestic measures alone will not suffice to 
reach  the  Kyoto  target.  The  use  of  Kyoto  mechanisms  is  expected  to  deliver  an  additional 
2.6% emission reduction. The total removal due to Article 3.3 and 3.4 activities in the EU-15 
is  estimated  to  be  about  32.6  million  tonnes  CO2  equivalents  per  year,  corresponding  to  an 
additional  0.8%.  Taking  all  measures  into  account,  the  EU-15  is  projected  to  reduce  its 
emissions by 8.0% meeting its Kyoto target. 

3.1.3.  EU-10  

Emissions aggregated from all new MS (excluding Cyprus and Malta for which data were not 
available) are projected to increase after 2004 but will still be 12% below 1990 by 2010. Only 
the  Czech  Republic  and  Estonia  project  decreasing  emissions  between  2004  and  2010.  In 
Hungary  and  Poland  GHG  emissions  in  2010  are  projected  to  be  significantly  above  2004 
emission  levels.  The  projections  for  the  new  MS  reported  here  are  2%  lower  than  those 
reported last year. 

All countries have policies and measures in place to reduce GHG emissions and six countries 
have identified additional policies and measures. Slovenia is the only country out of the EU-8 
that intends to use Kyoto mechanisms as an investor country, but has not yet decided on their 
contribution to its Kyoto target. With existing and additional measures as well as Slovenia’s 
activities under Articles 3.3 and 3.4, the EU-10 are expected to overachieve their respective 
targets in 2010 by a total of 163 million tonnes of CO2 equivalent, corresponding to 16%. 

3.1.4.  Acceding and candidate countries 

Per capita GHG emissions declined significantly from 1990 to 2004 in Bulgaria, and Romania 
and only slightly in Turkey and Croatia. At 4.2 tonnes per year, the per capita emissions in 
Turkey  are  less  than  half  of  the  average  EU-25  per  capita  emissions.  In  all  countries,  the 
emission level  per GDP has  also declined, indicating a decoupling of  economic growth and 
resource consumption. 

In 2004, Bulgaria, Croatia and Romania were on track to meet their Kyoto targets. For 2010, 
projections  taking  into  account  domestic  policies  and  measures  show  that  Bulgaria  and 
Romania will over-achieve their Kyoto targets. No projections were available for Croatia.  

3.2. 

Implementation of the European Climate Change Programme (ECCP) 

In June 2001, the European Climate Change Programme (ECCP) identified a number of EU-
wide common and coordinated policies and measures (CCPMs). The large majority of these 
policies  and  measures  under  the  ECCP  I  are  now  implemented.  The  Commission  launched 
ECCP  II  with  a  Stakeholder  Conference,  held  in  October  2005  in  Brussels.  The  focus  for 
ECCP II is on the ECCP I review, energy efficiency, energy supply, aviation, agriculture and 
forestry, non CO2 gases, carbon capture and storage, CO2 and cars, aviation and the role of the 
EU in reducing vulnerability and promoting adaptation in Europe.  

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Table 1: Effectiveness of ECCP I policies and measures 

EU-15: Estimated 
reduction potential (Mt. 
CO2 eq.) 

Energy supply 
Energy demand 
Transport 
Non CO2 gases 
Agriculture & Forestry 
TOTAL 

236-278 
194-239 
152-185 
59-62 
133 
774–897 

State of Play 

Fully 
implemented 
(Mt. CO2 eq.) 
- 
86 – 106 
75-80 
41 
45 
247–272 

Being finalized 
(Mt. CO2 eq.) 

200-230 
85-110 
72-95 
18-21 
0 
375-456 

A number of the CCPMs have been adopted or are at an advanced stage of preparation and 
could  as  shown  in  Table  1  deliver  almost  272  Mt  CO2  eq.  of  emission  reductions  over  the 
coming years. In several MS similar national policies and measures were already in place.  

3.3. 

Implementation of the EU Emissions Trading Scheme (ETS) 

The emissions trading directive is the cornerstone of the ECCP as it created a market for CO2 
allowances as of 1.1.2005. It helps ensure that emission reductions take place where they are 
most  economically  efficient.  The  linking  of  the  EU  emissions  trading  scheme  to  the  Kyoto 
mechanisms is aimed at reducing costs for those companies participating and at promoting the 
transfer of environmentally sound technology to countries with economies in transition and to 
developing countries. In the first year of its existence, the EU ETS has acted as a catalyst for 
the  CDM  and  JI  market  and  currently  there  are  many  more  such  projects  than  in  previous 
years. 

Table 5 in the annex provides an overview of the number of installations, their verified 2005 
emissions  and  the  respective  allocated  allowances  for  the  first  year  of  operation  of  the  EU 
ETS  as  recorded  in  the  Community  Independent  Transaction  Log  (CITL)  on  5  September 
2006. 

The NAPs for the first commitment period 2008-2012 are being assessed during the second 
half  of  2006.  The  Commission  will  ensure  that  the  NAPs  contribute  significantly  to  the 
achievement of the EU’s Kyoto target and allow MS to meet their reduction objectives. 

3.4. 

Projected use of Kyoto mechanisms 

Nineteen  MS  – all  EU-15  countries  plus  the  Czech  Republic,  Estonia,  Slovakia  and 
Slovenia –  have  provided  information  on  their  intended  use  of  Kyoto  mechanisms  (Joint 
Implementation  (JI),  Clean  Development  Mechanism  (CDM)  and  international  Emissions 
Trading to achieve their targets for the commitment period 2008–2012).  

For the EU-15, the intended use  of  Kyoto  mechanisms  by  10 MS  amounts  to  110.6  million 
tonnes of CO2eq. per year of the commitment period. This amount corresponds to over 30% 
of  the  total  required  emission  reduction  for  the  EU-15  of  about  342 million  tonnes  CO2 
equivalents  per  year  during  the  first  commitment  period.  Ten  MS  have  already  allocated 

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resources for the use of Kyoto mechanisms: Austria, Belgium, Denmark, Finland, Germany6, 
Ireland, Italy, the Netherlands, Spain and Sweden. Austria, Italy, the Netherlands and Spain 
allocated the largest budgets of EUR 288 million, EUR 1,320 million, EUR 600 million and 
EUR  250  million,  respectively,  for  the  five-year  commitment  period.  The  total  budget 
allocated by the ten MS amounts to about EUR 2,830 million.  

3.5. 

Projected use of carbon sinks 

In addition to policies and measures targeting sources of GHG emissions, MS can make use 
of carbon sinks. 14 MS have provided preliminary estimates of their intended use of carbon 
sinks to achieve their targets: Austria, Belgium, Czech Republic, Denmark, Finland, Ireland, 
Italy, Luxembourg, the Netherlands, Portugal, Slovenia, Spain, Sweden and the UK. 

The  projected  use  of  carbon  sinks  for  achieving  the  EU-15  Kyoto  target  is  so  far  relatively 
small, however it is important for reaching the Kyoto target. For the EU-15, so far, there are 
plans  to  remove,  by  2008–2012,  a  net  amount  of  about  18  million  tonnes CO2  per  year 
through afforestation and reforestation. These estimates are relatively uncertain also because 
details on the types of carbon sinks included are missing. This figure has decreased by around 
13  Mt CO2  per  year  since  last  year’s  estimate  due  to  corrections  by  Ireland  and  the  UK. 
Additional reductions of GHG emissions from activities in forest management are projected 
to  amount  to  around  14.2 million  tonnes  CO2  per  year.  Additionally,  Portugal  projects  to 
achieve 0.5 Mt/yr removals through cropland and grazing land management. Hence the total 
removal due to activities under Articles 3.3 and 3.4 of the Kyoto Protocol during the Kyoto 
commitment period is estimated at 32.6 Mt CO2 per year, or in total at about 0.8% in relation 
to the EU-15 target of –8%. 

Additionally, Slovenia expects a net removal of about 0.4 million tonnes CO2 equivalents per 
year.  

6 

The  funds  provided  by  Germany  are  for  pilot  programmes.  Germany  does  not  intend  to  use  Kyoto 
mechanisms for reaching its target. 

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