REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL Preparing the ground for raising long-term ambition EU Climate Action Progress Report 2019
Date: 2019-10-31
Institutions: Directorate-General for Climate Action, European Commission
Subjects: EU Member State, EU environmental policy, adaptation to climate change, climate change, environmental cooperation, environmental protection, greenhouse gas, innovation, pollution control measures, reduction of gas emissions

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 31.10.2019  COM(2019) 559 final  REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL Preparing the ground for raising long-term ambition  EU Climate Action Progress Report 2019 {SWD(2019) 396 final}  
 
 
1.  MEETING THE EU’S INTERNATIONAL COMMITMENTS 

Setting out a vision towards climate neutrality by 2050 

In November 2018, the European Commission presented its Strategic Vision "A Clean Planet 
for all"1. The strategy shows how Europe can lead the way to climate neutrality by investing 
into realistic technological  solutions,  empowering  citizens, and  aligning  action in  key  areas 
such  as  industrial  policy,  finance  or  research  –  while  ensuring  social  fairness  for  a  just 
transition.  Figure  1  shows  one  feasible  pathway  towards  net-zero  greenhouse  gas  (GHG) 
emissions in 2050.  

Figure 1: GHG emissions trajectory for the EU in a 1.5 degree scenario2 

The  Commission’s  strategic  vision  is  an  invitation  to  all  EU  institutions,  the  national 
parliaments,  business  sector,  non-governmental  organisations,  cities  and  communities,  as 
well as citizens and especially the youth, to participate in ensuring that the EU can continue 
to  show  leadership  and  encourage  other  international  partners  to  do  the  same.  The 
Commission’s strategic vision has been widely debated across the EU institutions and among 
stakeholders during 2019. This informed debate is a step towards adopting and submitting to 
the  United  Nations  Framework  Convention  on  Climate  Change  (UNFCCC)  an  ambitious 
long-term strategy by early 2020, as required under the Paris Agreement. 

1 COM(2018) 773 final: A clean planet for all. A European strategic long-term vision for a prosperous, modern, 
competitive and climate neutral economy. 
2 Source: COM(2018) 773 final.  

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In 2018, GHG emissions declined by 2.0% while the EU economy continued to grow 

In 2018, EU greenhouse gas emissions (including international aviation) were down by 23% 
from 1990 levels, according to preliminary data (see Figure 2). The EU thus remains well on 
track  to  achieve  its  target  under  the  UN  Framework  Convention  for  Climate  Change  of 
reducing  GHG  emissions  by  20%  by  20203.  In  2018,  emissions  were  2.0  %  lower  than  in 
2017. EU GHG emissions therefore reached their lowest level since 1990. Between 1990 and 
2018, the EU’s combined GDP grew by 61%. The GHG emission intensity of the economy, 
defined as the ratio between emissions and GDP fell to 303 g CO2eq/EUR, which is less than 
half of the 1990 level. 

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2020-target:  
minus 20% 
vs. 1990 

2018-emissions:  
minus 23%  
vs. 1990 

2030-target:  
at least minus 
40% vs. 1990 

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1990

1995

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2005

2010

2015

2020

2025

2030

Total EU greenhouse gas emissions (historical)

Total EU greenhouse gas emissions (projection with existing measures)

2020 and 2030 targets

Total EU greenhouse gas emissions (projection with additional measures)

Figure 2: Total EU GHG emissions including international aviation (historical emissions 1990-2018, projected 
emissions with existing and with additional measures4 2019-2030) and GHG reduction targets  

Emissions  from  stationary  installations  covered  by  the  EU  emissions  trading  system  (EU 
ETS),  which  are  most  emissions  from  electricity  and  heat  production  and  industry,  fell  by 
4.1% from 2017 to 20185. The reduction came mainly in electricity and heat production. This 
is  in  line  with  the  trend  over  the  last  five  years,  where  emissions  from  these  sectors  have 
decreased significantly.  This reflects in particular changes in the fuels used to produce heat 
and electricity, including an increase in the use of renewable energy sources.  

Emissions  not  covered  by  the  EU  ETS  (such  as  emissions  from  transport,  buildings, 
agriculture and waste) decreased by 0.9% from 2017 to 2018. The reduction comes after three 

3 In addition to the EU target under the UNFCCC, the EU, together with Iceland, also committed to a binding 
emission reduction for the second commitment period of the Kyoto Protocol (2013-2020). The target is to 
reduce emissions by 20% compared to base year emissions (mostly 1990).The scope is slightly different from 
the scope of the UNFCCC target. In 2017, the EU and Iceland had reduced emissions by 26% compared to the 
base year.   
4 Sum of Member States’ projections. Existing measures means measures the Member States have already 
implemented. Additional measures means measures the Member States plan to implement.   
5 The figure includes all 31 countries participating in the EU ETS.  

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years  of  slightly  increasing  emissions  from  these  sectors.  The  reduction  came  mainly  from 
energy use in buildings. Emissions from agriculture also decreased slightly, while there was a 
small increase in transport emissions as compared to 2017.  

Moreover,  emissions  from  international  aviation  continued  increasing  in  2018,  and  are  up 
19% over the last five years. These are in principle covered by the EU ETS, for the moment 
limited to flights in the European Economic Area (EEA).  

The EU has put in place legislation to reach its 2030 target 

The  Union  has  communicated  a  nationally  determined  contribution  under  the  Paris 
Agreement of at least 40% domestic greenhouse gas reductions by 2030 compared to 1990. 
The EU has put in place legislation as shown in Figure 3 that will enable it to deliver on this 
commitment.  The  effective  implementation  of  all  climate,  energy  and  mobility  targets  laid 
down in Union law could even lead to EU-28 greenhouse gas reductions up to around 45% in 
2030 compared to 1990.  

Cooperation with Norway and Iceland to reach the 2030 target  

Norway and Iceland have agreed to cooperate with the EU in reaching their 2030 targets of 
reducing GHG emissions by at least 40% compared to 1990 levels. In the context of the EEA 
Agreement, Norway and Iceland will as of 2021 implement the Effort Sharing Regulation and 
the LULUCF Regulation. Norway and Iceland already take part in the EU ETS since 2008. 

GREENHOUSE  
GAS 
EMISSIONS 

RENEWABLE  
ENERGY 

ENERGY  
EFFICIENCY 

INTER-
CONNECTION 

2020 

-20% 

20% 

20% 

10% 

CLIMATE IN 

CO2 

EU-FUNDED  
PROGRAMMES 

FROM: 

2014-2020 
20% 

2021-2027 

CARS 

2030 

At least 
-40% 

≥ 32% 

≥ 32.5% 

15% 

25% 

-37.5% 

Vans -31% 

Lorries -30% 

Figure 3: 2030 Climate and Energy Framework   

Upwards revision clause by 2023 

Member States identify additional policies and measures to reach 2030 objectives 

In  2018,  for  the  first  time,  Member  States  prepared  draft  integrated  national  energy  and 
climate plans (NECPs)6. The draft plans show that Member States make significant progress 
in defining the path to reaching the 2030 climate and energy targets, although further efforts 
are still needed. The European Commission has analysed the aggregated effects of the draft 

6 This is required according to Regulation (EU) 2018/1999 on the Governance of the Energy Union and Climate 
Action.  

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plans on reaching the 2030 targets, and issued country-specific recommendations7. Member 
States must finalise their plans by the end of 2019.  

With  national  policies  and  measures  already  implemented,  emissions  are  projected  to  be 
reduced by 30% in 2030 according to an aggregation of the latest national GHG projections. 
With  implementation  of  the  planned  measures  or  stated  ambitions  in  the  draft  NECPs,  the 
overall GHG reduction of the EU is estimated to reach the at least 40% reduction target.  

The  latest  projections  from  Member  States,  submitted  after  the  draft  NECPs,  indicate  that 
with implementation of planned policies, but excluding stated ambitions (targets), emissions 
may be reduced by 36% in 2030. This estimate is somewhat lower than the assessment of the 
draft NECPs. The main reasons for the difference are that the assessment of the draft NECPs 
takes  into  account  the  national  targets  expressed  by  Germany  and  the  Netherlands  in  their 
draft NECPs and that Poland presented projections with planned measures in its draft NECP, 
but did not submit these as part of the reporting exercise on projections in 2019. 

2.  EMISSIONS IN THE EU EMISSIONS TRADING SYSTEM (EU ETS) 

The  EU  emissions  trading  system  (EU  ETS)  covers  emissions  from  approximately  11  000 
power stations and manufacturing plants,  and aviation  within and between the participating 
countries.  

In 2018, emissions from stationary installations participating in the EU ETS are estimated to 
have decreased by 4.1% compared to 2017, based on the information recorded in the Union 
Registry.  The  decrease  in  emissions  was  mainly  driven  by  the  power  sector,  whereas 
emissions from industry decreased slightly.  

With regard to developments in aviation emissions, verified emissions continued to grow and 
amounted to 67 million tonnes of CO2 in 2018, an increase of 4% compared to 2017. 

Figure 4 shows the historical and projected development in ETS emissions, together with the 
cap and the accumulated surplus of ETS allowances.  

7 https://ec.europa.eu/energy/en/topics/energy-strategy-and-energy-union/governance-energy-
union/national-energy-climate-plans  

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Phase 1 

Phase 2 

Phase 3 

Phase 4 

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Other industrial installations (sum of Member States' projections)

Combustion (sum of Member States' projections)

Other industrial installations (verified emissions)

Combustion* (verified emissions)

Cap phase 3

Surplus of allowances

Cap phase 2

Cap phase 4

*Combustion refers to activity 20 "combustion of fuels" in the EU Transaction Log.   

Figure 4: Verified ETS emissions 2005-2018, Member States projections with existing measures 2019-2030, 
ETS cap phases 2, 3 and 4, and accumulated surplus of ETS allowances 2008-2018. Mt CO2-eq8 

As  of  the  end  of  June  2019,  the  total  number  of  international  credits  used  or  exchanged 
amounts  to  around  1.51  billion,  accounting  for  over  90%  of  the  estimate  for  the  allowed 
maximum  of 1.6 billion.  In phase 3 alone (2013-2020), 453.49 million  international  credits 
were exchanged until the end of June 2019. 

In preparing for the Market Stability Reserve to become operational in 2019, the Commission 
has  systematically  been  publishing  as  from  mid-May  2017  the  surplus  figures9  for  the 
preceding years. In May 2019, the surplus was published for the third time, corresponding to 
ca.  1.65  billion  allowances10.  On  the  basis  of  the  2018  surplus  and  the  revised  EU  ETS 
legislation  for  the  system’s  fourth  trading  period  (2021-2030),  the  auction  volumes  from 
September to December 2019, and from January to August 2020 will be reduced by close to 
397 million allowances, or 24% of the surplus.  

8 The figure shows verified ETS emissions with the sectoral and geographical of the ETS in the relevant year and 
can therefore not be read as a time series before 2013. Aviation is included in the cap for 2012-2018. 
9 The surplus corresponds to the "total number of allowances in circulation" as defined in the decision 
establishing the Market Stability Reserve. 
10 C(2019) 3288 final: Publication of the total number of allowances in circulation in 2018 for the purposes of  
the Market Stability Reserve under the EU Emissions Trading System  

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LIFE15 OPTIMELT* - Demonstration of thermochemical reforming of natural gas for 
reducing GHG emissions in energy intensive industries – glass industry.  

The  project  carries  out  the  first  full-scale  demonstration  of  an  innovative  waste-heat 
recovery  concept.  The  technology,  called  OPTIMELT,  is  able  to  use  an  endothermic 
reaction of natural  gas with water vapour/CO2 in the flue gas to recover more heat than 
previously possible in high-temperature manufacturing processes. 

The project has been awarded EUR 2.2 million through LIFE, the EU funding instrument 
for climate and environment. 

*The project is an example of how EU funds contribute to innovation in sectors covered by the ETS.   

3.  EFFORT SHARING EMISSIONS 

Emissions  from  most  sectors  not  included  in  the  EU  ETS,  such  as  transport,  buildings, 
agriculture (non-CO2-emissions) and waste, are covered by the EU effort sharing legislation. 
The Effort Sharing Decision11 (ESD) sets national emissions targets  for 2020, expressed  as 
percentage  changes  from  2005  levels.  Member  States  must  also  respect  annual  emissions 
limits  from  2013  to  2020.  Similarily,  the  Effort  Sharing  Regulation12  (ESR)  sets  national 
emissions targets for 2030.  

Progress towards the effort sharing targets 

Member  States  are  planning  how  to  achieve  their  2030  effort  sharing  targets.  If  planned 
policies  are  implemented,  the  EU  could  reduce  effort  sharing  emissions  by  27  to  28%  by 
203013, as compared to 2005. This is clear progress as compared to existing policies, which 

11  Decision No 406/2009/EC on the effort of the Member States to reduce their greenhouse gas emissions to 
meet the Community's greenhouse gas emission reduction commitments up to 2020. 
12 Regulation (EU)  2018/842 on binding annual greenhouse gas emission reductions by  Member States from 

2021 to 2030 contributing to climate action to meet commitments under the Paris Agreement. 
13 The Member States’ projections ‘with additional measures’ submitted in March 2019 indicate a 27% 
reduction, while the assessment of the scenarios with additional measures in the draft NECPs indicate a 28% 
reduction.  

6 

 
 
 
 
                                                           
 
would reduce emissions by 20% by 2030. However, to achieve the emissions reduction target 
of 30% for the effort sharing, Member States will need to identify additional measures. The 
European  Commission  has  recommended  several  Member  States  to  further  specify  their 
strategy  for  achieving  the  non-ETS  target14  for  the  entire  period  2021-2030  in  their  final 
NECPs.  

Figure 5 shows the distance between Member States’ 2030 targets under the ESR and their 
projections with existing and with additional measures.  

14 The non-ETS targets include the national targets set under the Effort Sharing Regulation and the ‘no-debit’ 
commitment under the LULUCF Regulation (see chapter 4).   

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Portugal

Greece

Sweden

Slovenia

Croatia

Czechia

Latvia

Hungary

Netherlands

United Kingdom

Slovakia

Italy

Bulgaria

Spain

Romania

France

Lithuania

Finland

Germany

Denmark

Austria

Poland

Belgium

Ireland

Cyprus

Estonia

Luxembourg

Malta

-30% 

-26% 

-13% 

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25% 

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-40%

-20%

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20%

40%

60%

80%

2030 projections

2030 projections

Figure 5: Gaps between 2030 ESR targets and projected emissions with existing measures (WEM) and with 
additional  measures  (WAM)  in  percentage  of  2005  base  year  emissions.  Negative  values  indicate  over-
achievement of targets; positive values indicate that the targets are not reached.  

8 

 
 
 
Recommendations to Member States on their draft NECPs 

In June 2019, the European Commission issued recommendations to Member States based 
on their draft NECPs. As regards non-ETS GHG emissions, several Member States were 
recommended to: 

  Clarify how the Member State plans to reach its 2030 greenhouse gas target for 
sectors outside the EU emissions trading system by considering further cost-
efficient policies over the period 2021-30; 

  Clarify how the Member State plans to comply with the requirement that land use, 
land use change and forestry (LULUCF) emissions do not exceed removals; 
  Consider also the cost-effective generation of transfers to other Member States 

under the ESR as a funding source. 

Several Member States were also recommended to reconsider their level of ambition for 
renewable energy and energy efficiency in order to close the ambition gaps at EU level. 
Moreover, many Member States were recommended to further analyse interactions 
between planned energy and climate policies and measures and air pollution.   

Emissions covered by the ESD were 11% lower in 2018 in comparison to 2005 as shown in 
Figure 6. This is as an overachievement by 3 percentage points of the interim target of an 8% 
reduction. Since the system was launched in 2013, EU-wide emissions have been below the 
total  limit  each  year.  This  has  led  to  a  cumulative  surplus  of  annual  emission  allocations 
(AEAs) of about 1110 Mt CO2eq in 2013-2018. Until 2020, emissions are projected to remain 
below  the  annual  limit  and  the  2020  target  for  effort  sharing  emissions  is  projected  to  be 
over-achieved by 3 percentage points, with existing measures.  

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Emissions

Projections with existing measures

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Emissions limit under the ESD

Estimated emissions limit under the ESR

Cumulative surplus of AEAs

Figure 6: Emissions in sectors presently covered by effort sharing legislation 2005-2030 and AEAs (Mt CO2eq) 

9 

 
 
 
 
 
 
 
Emissions  in  the  sectors  covered  by  the  effort  sharing  legislation  decreased  gradually  from 
2005  to  2014.  After  2014,  emissions  increased  in  three  consecutive  years,  followed  by  a 
reduction in 2018.  

More than one third of the effort sharing emissions come from transport. After a decrease in 
emissions  between  2007  and  2013,  emissions  from  transport  have  increased  in  each  of  the 
last  five  years,  and  are  now  only  3%  lower  than  in  2005.  Towards  2030,  Member  States 
project  a  small  reduction  (7%  compared  to  2005)  with  existing  measures.  However,  with 
implementation  of  planned  policies  and  measures,  transport  emissions  are  projected  to  be 
reduced by 18% by 2030, compared to 2005.  

The  CO2  emissions  standards  for  new  cars  and  vans  are  key  drivers  for  road  transport 
emissions  reduction.  While  average  CO2  emissions  per  kilometre  of  new  cars  and  vans 
remain below the current applicable targets, as shown in Figure 7 below, provisional data for 
2018 shows an increase in emissions as compared to 2017. Therefore, vehicles manufacturers 
will have to significantly reduce emissions of their fleet, on average by around 25 g CO2/km 
for cars and 11 g CO2/km for vans, to meet the upcoming 2020 and 2021 targets. 

Figure 7: Average CO2 emissions per kilometre for new cars and vans  

The  Fuel  Quality  Directive  contributes  to  decreasing  GHG  emissions  from  transport.  It 
obliges  Member  States  to  require  that  fuel  suppliers  reduce  life  cycle  GHG  emissions 
intensity of fuels supplied by 6% by 2020, compared to 2010. The average GHG intensity of 
the fuels supplied in 2017 was 3.4% lower than 2010 (based on data from 22 Member States, 
reported  for  the  first  time  in  2019).  As  shown  in  Figure  8,  the  progress  achieved  varies 
greatly across Member States, but almost all need to take swiftly further action to ensure that 
the 2020 target will be met.  

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Figure  8:  Reductions  in  GHG  intensity  of  fuels  achieved  by  EU  fuel  suppliers  in  the  22  reporting  Member 
States, 2010-2017  

Emissions  from  energy  use  in  buildings  show  some  year-to-year  variation  due  to 
weather-related  changes  in  heating  demand.  Over  the  longer  term,  emissions  have  shown  a 
downward  trend,  which  is  projected  to  continue  towards  2030.  The  projected  emissions 
decrease reflects the availability of marketable technologies that reduce energy demand and 
integration  of  renewables.  Member  States  have  planned  new  policies  that  can  reduce 
emissions faster.  

Emissions  from  agriculture  (non-CO2)  were  at  a  similar  level  in  2018  as  in  2005  and  are 
projected  to  remain  stable  in  the  period  to  2030,  with  existing  policies.  Even  with  the 
implementation of planned policies, only a minor decrease is projected.  

11 

 
 
 
 
 
Verbiostraw biogas plant* 

Verbiostraw  is  a  biogas  plant  that  converts  straw  into  biomethane  which  is  fed  into  the 
local natural gas network. The current capacity of the plant is 8 MW to be extended up to 
16.5 MW generating up to140 GWh of biomethane annually.   

Verbiostraw is a first-of-a-kind project that demonstrates an advanced biogas technology 
at  large  scale.  The  plant  uses  an  innovative  mono  straw  fermentation  technology  to 
manufacture  biomethane  from  straw  only.  It  demonstrates  that  not  only  foodstuff  raw 
materials can be used to produce biofuels but also residual materials from agriculture.  

The  project  is  located  in  Schwedt,  Brandenburg  (Germany)  and  received  EUR  22.3 
million of New Entrants Reserve (NER) 300 funding. 

*The  project  is  an  example  of  how  EU  funds  contribute  to  innovation  in  sectors  covered  by  the  effort 
sharing legislation.  

Emissions  from  waste  management  decreased  by  33%  between  2005  and  2018,  and  this 
steep downward trend is projected to continue.  

ESD emissions from industry and other sectors were 12% lower in 2017 than in 2005 and 
are projected to continue to fall. As part of this, many ozone-depleting substances (ODS) are 
also  powerful  greenhouse  gases.  The  EU  is  already  meeting  its  international  obligations  to 
phase  out  ODS  consumption  by  2020,  as  required  under  the  Montreal  Protocol.  With,  the 
exception  of  2012, EU consumption, as counted under the Montreal  Protocol15,  has been 
negative  since  2010.  The  consumption  in  2017  was  calculated  to  be  -4  080  metric  tonnes. 
Negative consumption means that more ODS are being destroyed or exported than produced 
or imported. These results show that ODS are not being reintroduced  in applications where 
more environmentally friendly alternatives exist.  

15 An aggregated parameter that integrates imports, exports, production and destruction of ODS, except those 
for feedstock use). 

12 

 
 
 
                                                           
 
 
The Commission evaluated the ODS Regulation16 in 2019. The evaluation shows that while 
the Regulation is very effective in reaching its objectives, it may be possible to achieve these 
results in a more efficient manner.  

Fluorinated gases (F-gases) are a group of gases often used as substitutes for ozone-depleting 
substances.  However,  F-gases  are  powerful  greenhouse  gases.  The  Regulation  on  F-gases17 
provides  for  an  EU-wide  phase-down  of  hydrofluorocarbons  (HFC)  from  2015  and  other 
measures targeting emissions from F-gases, with the aim of cutting emissions by two thirds 
by 2030 compared to 2014. HFCs are also covered by the Kigali Amendment to the Montreal 
Protocol, which entered into force on 1 January 2019.  

Data for 2017 shows that the supply of F-gases decreased by 2% in terms of climate impact 
(CO2eq), but increased by 3%  in terms of mass compared to 2016. In 2017, the total placing 
on the market under the quota system was 0.4% below the maximum quantity allowed18. This 
success reflects a shift towards gases with lower global-warming potential and indicates that 
the Regulation is proving effective in reducing F-gas emissions. 

Member States compliance with the Effort-Sharing Decision (ESD) 

All 28 Member States complied with their ESD obligations in 2013-2016. Malta exceeded its 
annual emissions allocations (AEAs) in each of the years in question, but covered the deficit 
by  purchasing  AEAs  from  Bulgaria.  Finland,  Poland,  Ireland,  Germany  and  Belgium 
exceeded their AEAs in 2016, but were able to cover the deficit through the surplus of AEAs 
banked from previous years. Sweden did not use its full allocation and cancelled its surplus 
AEAs    from  2013  to  2016  to  enhance  the  environmental  integrity  of  the  system.  All  other 
Member  States  banked  their  surplus  allocations  for  possible  use  in  later  years.  No 
international credits from the clean development mechanism (CDM) or joint implementation 
were used to comply with ESD obligations. 

The compliance cycle for 2017 is ongoing. In 2017, Malta’s emissions exceeded its AEA by 
23 percentage points. Malta will therefore again need to purchase AEAs and/or international 
project  credits.  Emissions  in  Germany,  Poland,  Ireland,  Estonia,  Austria,  Bulgaria  and 
Cyprus  exceeded  the  AEAs  of  2017  by  2-7  percentage  points.  Also  Lithuania  and 
Luxembourg had emissions that slightly exceeded their AEAs. These Member States have a 
surplus of AEAs banked from previous years that can be used to ensure compliance.  

The cumulative surplus of AEAs per Member State for 2013-2017 is shown in Figure 9.  

16 Regulation (EC) No 1005/2009 on substances that deplete the ozone layer 
17 Regulation (EU) No 517/2014 on fluorinated greenhouse gases  
18  Fluorinated  greenhouse  gases  2018  –  data  reported  by  companies  on  the  production,  import,  export  and 
destruction  of  fluorinated  greenhouse  gases  in  the  European  Union,  2007-2016,  European  Environment 
Agency. 

13 

 
 
 
 
                                                           
-68% 

EU-28

Malta

Finland

Germany

Poland

Lithuania

Austria

Ireland

Luxembourg

Estonia

Belgium

Czechia

Latvia

United Kingdom

Denmark

France

Romania

Italy

Spain

Bulgaria

Slovenia

Netherlands

Sweden

Slovakia

Portugal

Hungary

Greece

Croatia

Cyprus

35% 

4% 

4% 

10% 

10% 

12% 

15% 

16% 

16% 

19% 

23% 

25% 

27% 

30% 

32% 

39% 

50% 

51% 

54% 

63% 

64% 

73% 

93% 

97% 

114% 

116% 

116% 

181% 

3% 

-50%

0%

50%

100%

150%

200%

Cumulative surplus of AEAs

Sweden: cumulative surplus of AEAs, deleted

Bulgaria, Malta: traded AEAs

Figure 9: Cumulative surplus of AEAs as percentage of 2005 base year emissions, 2013-2017 

Preliminary data for 2018 show a similar picture as for 2017. Malta exceeded its AEA by 27 
percentage points, Ireland by 12 percentage points and Poland by 9 percentage points. Also 
Estonia,  Luxembourg,  Germany,  Austria,  Bulgaria,  Cyprus,  Finland  and  Belgium  had 
higher emissions than their AEA.  All these Member States already had higher emissions than 
their AEA in either 2016, 2017, or both years.  

For 2018, all Member States, except Malta, may still be able to comply with their obligations 
through using AEAs banked from previous years. However, in 2019 and 2020, some Member 
States  may  no  longer  have  a  sufficient  amount  of  banked  AEAs  to  cover  potential  deficits. 
Projections  indicate  that  Malta,  Germany,  Ireland  and  Austria  are  likely  to  incur  a  net 
deficit of AEAs over the period 2013-2020. In case of a net deficit, Member States will have 
to  use  the  flexibility  mechanisms  in  the  Effort  Sharing  Decision  (beyond  banking  and 
borrowing AEAs). 

14 

 
 
 
4.  LAND USE, LAND USE CHANGE AND FORESTRY 

Land  use  and  forestry  can  generate  both  emissions  and  removals  of  CO2  from  the 
atmosphere.  From  2013  to  2020,  EU  Member  States  are  committed  to  ensuring  that 
greenhouse  gas  emissions  and  removals  from  additional  action  in  this  sector  are  accounted 
towards  their  reduction  target  under  the  Kyoto  Protocol.  However,  these  emissions  and 
removals do not count towards the EU domestic reduction target of 20% by 2020. 

.

q
e
-
2
O
C
t

M

100

50

0

-50

-100

-150

-200

Afforestation /
Reforestation

Deforestation

Forest
Management

Cropland
Management

Grazing Land
Management

Revegetation

Total

2013

2014

2015

2016

2017

Figure 10: Preliminary accounted emissions and removals for activities reported under the Kyoto Protocol, 
second commitment period, EU-2819  

The EU’s ‘accounted’ debits and credits per activity for 2013-2017 produce an average sink 
of  -111.9  Mt  CO2eq20.  The  accounted  net  credits  fell  from  -133.9  to  -80.5 Mt CO2eq  from 
2013 
‘mandatory’ 
for 
(Afforestation/Reforestation,  Deforestation  and  Forest  Management)  and  ‘elected’  activities 
under the Kyoto Protocol21.  

2017.  These 

quantities 

the  EU 

include 

both 

to 

The decrease in net credits described above mainly results from decreasing credits or credits 
turning  into  debits  for  forest  management  in  Croatia,  Czechia,  Denmark,  France,  Italy, 
Lithuania, Portugal,  Slovenia and the United Kingdom.    The main reason is  the increase in 
harvesting rates. This was driven mostly by a marked increase in wood-demand and national 
policies that enhanced harvest, and to a lesser extent by more forest reaching mature age, e.g. 

19 Forest Management credits are capped and presented as yearly averages when the total Forest Management 
credits of the considered period exceed the simulated cap over the same period. 
20 Accounting represents a means to evaluate policies and to raise ambition for more action in terms of reducing 
emissions and increasing removals. Note that debits and credits from accounting are preliminary and simulated, 
because definitive accounts will only be available after the end of the commitment period (December 2020). 
Different accounting rules apply depending on the activity: gross-net with baseline 0 for 
Afforestation/Reforestation and Deforestation, net-net against a baseline (mostly emissions and removals for 
year 1990) for Grazing Land Management, Cropland Management and Revegetation, and the difference against 
the Forest Management Reference Level for Forest Management. 
21 Seven Member States chose cropland management, six chose grazing land management, one chose 
revegetation and one chose wetland drainage and rewetting, but has yet to provide quantifications.  

15 

 
 
 
                                                           
 
 
in Denmark and France. Natural disturbances also contributed to the increased emissions. For 
instance,  2017  emissions  from  wildfires  in  Italy  and  Portugal  were  among  the  highest  ever 
recorded.  Pest and windstorms have dramatically affected forests in Lithuania, Slovenia and 
Czechia.  

It  remains  uncertain  whether  this  trend  will  continue.  Yet,  in  a  context  of  climate  change, 
natural  disturbance  events  are  expected  to  become  more  frequent.  Market  behaviour  will 
mainly depend on the economic context. Material substitution and wood for energy initiatives 
along  with  afforestation  and  reforestation  programmes  are  expected  to  increase  as  they  are 
driven by policies that will enter into force in 2021. 

Under accounting rules for the Kyoto Protocol second commitment period, Cyprus, Czechia, 
Finland,  France,  Italy,  Latvia,  Lithuania,  the  Netherlands,  Portugal  and  Slovenia  show  net 
debits for at least one year in this preliminary accounting exercise.  

The  2030  Climate  and  Energy  Framework  integrates,  for  the  first  time,  emissions  and 
removals from land.  From 2021, the LULUCF Regulation22  requires each Member State to 
ensure  that  accounted  emissions  from  land  use  are  entirely  compensated  by  an  equivalent 
removal of CO2 from the atmosphere through action in the sector. This ‘no-debit rule’ means 
that  Member  States  have  to  offset  emissions  from  deforestation,  for  instance  by  equivalent 
carbon sinks from afforestation or improving the sustainable management of existing forests.  

Member State have submitted National Forestry Accounting Plans, including proposed forest 
reference levels. An expert group have technically assessed the proposals23, and the European 
Commission  has  issued technical  recommendations  for  improving  the  national  plans24.    On 
this basis, Member States should revise their plans by 31 December 2019. 

The  Commission  Communication  “A  Clean  planet  for  all”25  also  included  emissions  and 
removals from LULUCF. At present, the EU land stores more emissions than it emits. Even 
though this sink is projected to decline, it will have to play an increasing role, together with 
other  technological  solutions,  in  order  to  offset  the  remaining  emissions  from  other  sectors 
and achieve a net-zero balance by 2050 as illustrated in Figure 1.  

5.  POLICY DEVELOPMENTS SINCE OCTOBER 2018 

The EU continues developing its policy framework for cutting GHG emissions and adapting 
to climate change. Over the last year, there has been significant progress to reduce emissions 
from road transport and promote sustainable finance.  

22  Regulation (EU) 2018/841 on the inclusion of greenhouse gas emissions and removals from land use, land 

use change and forestry in the 2030 climate and energy framework. 

23 http://ec.europa.eu/transparency/regexpert/index.cfm?do=groupDetail.groupDetail&groupID=3638&news 
=1 
24 SWD(2019) 213 final 
25 COM(2018) 773 final 

16 

 
 
 
                                                           
Road transport  
A  Regulation26  adopted  on  17  April  2019,  sets  new  emissions  standards  for  passenger  cars 
and vans from 2020 onwards. By 2025 and 2030, respectively, average emissions from new 
cars  will have to  be 15% and 37.5% lower than in  2021,  and average  emissions from  vans 
will have to be 15% and 31% lower than in 2021. 

For heavy duty vehicles, a Regulation27 adopted on 20 June 2019 sets for the first time CO2 
emission standards for heavy-duty vehicles in the EU.  Emissions from lorries newly put on 
the market in the EU will by 2025 have to be on average 15% lower than in 2019 and 30% 
lower by 2030.  

Both  Regulations  include  a  mechanism  to  incentivise  the  uptake  of  zero  and  low-emission 
vehicles  based  on  benchmarks  values  from  2025  onwards.  They  also  introduce  new 
provisions to ensure the real-world representativeness of the monitored emissions.  

In addition, the revision of the Clean Vehicles Directive28 was adopted on 20 June 2019, to 
promote clean mobility solutions in public procurement tenders.  

Finally,  negotiations  are  ongoing  between  the  European  Parliament  and  the  Council  on  the 
revision of  (i) the Eurovignette Directive29, to  promote smarter road-infrastructure charging 
and (ii) the Combined Transport Directive30, to promote the combined use of different modes 
(e.g. trucks and trains) for freight transport. 

Sustainable finance 

Shifting investment patterns is a necessity for achieving EU climate objectives. As part of the 
legislative  environment,  the  EU  is  aligning  its  financial  and  capital  markets  framework  to 
climate challenges. In March 2018, the Commission proposed a comprehensive action plan to 
integrate  sustainability  in  capital  markets31,  with  three  main  objectives:  to  reorient  capital 
flows  towards  sustainable  investment,  to  manage  financial  risks  stemming  from  climate 
change,  environmental  degradation  and  social  issues,  and  to  foster  transparency  and  long-
termism in financial and economic activity.  

In May 2018, the European Commission proposed a first legislative package of measures32 to 
implement  the action plan. The co-legislators have agreed on the Regulation on disclosures 
relating  to  sustainable  investments  and  sustainability  risks  and  on  the  Regulation  on  low 
carbon  benchmarks  and  positive  carbon  impact  benchmarks.  The  Commission  has  issued 
guidelines  for  corporate  reporting  of  climate-related  information  under  the  Non-Financial 
Reporting  Directive33.  Negotiations  are  ongoing  on  the  proposal    for  a  regulation  on  the 
establishment  of  a  framework  to  facilitate  sustainable  investment  (through  a  so-called 

26   Regulation (EU) 2019/631 setting CO2 emission performance standards for new passenger cars and for new 
light commercial vehicles 
27 Regulation (EU) 2019/1242 setting CO2 emission performance standards for new heavy-duty vehicles 
28 Directive (EU) 2019/1161 on the promotion of clean and energy-efficient road transport vehicles 
29 https://ec.europa.eu/transport/modes/road/news/2017-05-31-europe-on-the-move_en 
30 https://europa.eu/rapid/press-release_IP-17-4242_en.htm 
31 COM/2018/097 final 
32 https://ec.europa.eu/info/publications/180524-proposal-sustainable-finance_en  
33 https://ec.europa.eu/info/publications/non-financial-reporting-guidelines_en#climate  

17 

 
 
                                                           
“taxonomy”). Preparatory and non-legislative work is also progressing on other elements of 
the action plan. 

6.  FINANCING CLIMATE ACTION 

Mainstreaming climate policies into the EU budget  

The  EU  has  set  out  to  spend  an  average  of  at  least  20%  of  its  budget  on  climate-relevant 
expenditure in 2014-2020. The latest available data show that such expenditure accounted for 
20.7% of the budget in 2018.34 On average, the budget trend would deliver EUR 209 billion 
(19.7% of the budget) under the current multiannual financial framework (MFF).  

Building on this success, on 2 May 2018 the Commission proposed a more ambitious target 
of 25% of expenditure contributing to climate objectives under the next (2021-2027) MFF. 35 

n
o

i
l
l
i

m
R
U
E

40 000

35 000

30 000

25 000

13,7 % 

17,9 % 

20 000

15 000

10 000

5 000

 0

21,8 % 

20,4 % 

20,7 % 

20,9 % 

21,0 % 

25 %

20 %

15 %

10 %

5 %

0 %

2014

2015

2016

2017

2018

2019

2020

Horizon 2020

Connecting Europe Facility

European Regional Development Fund

Cohesion Fund

European Agricultural Guarantee Fund

European Agricultural Fund for Rural Development

Others

Share of climate relevant spending in EU budget

Figure 11: Climate-relevant spending in the EU budget, 2014-2020 (EUR million and percentage of the EU 
budget) 

The use of revenues from the auctioning of EU ETS allowances 

In 2018, Member States earned EUR 13.6 billion from the auctioning of EU ETS allowances, 
EUR 8 billion more than in 2017 as a result of higher carbon price. In 2018, close to 70 % of 
the  revenues  were  used,  or  are  planned  to  be  used  for  climate  and  energy  purposes.  In  the 

34   https://ec.europa.eu/info/sites/info/files/about_the_european_commission/eu_budget/draft-budget-2020-

wd-13-web-1.4_soe.pdf 

35   https://ec.europa.eu/commission/publications/factsheets-long-term-budget-proposals_en  

18 

 
 
 
 
 
                                                           
 
 
period from 2013-2018, close to 80% were used, or are planned to be used for such purposes. 
Most  of  the  revenues  go  to  national  and  EU  purposes,  while  a  smaller  amount  goes  to 
international climate and energy purposes. Figure  12 shows the total EU ETS revenues  and 
their use on climate and energy purposes.  

n
o

i
l
l
i

b
R
U
E

16

14

12

10

8

6

4

2

0

Used for climate and energy
purposes (unspecified)

Used for international climate
and energy purposes

Used for domestic climate and
energy purposes

Total revenues

2013

2014

2015

2016

2017

2018

Figure 12: Use of revenues from the auctioning of ETS allowances 2013-2018 (EUR billion) 

Of revenues used domestically, the largest amounts were spent on renewable energy, energy 
efficiency and sustainable transport. Figure 13 shows the domestic use of auction revenues.  

Other domestic / 
EU uses; 1,9 

R&D; 
1,7 

Sustainable 
transport; 4,2 

Renewable 
energy; 9,2 

Energy efficiency; 
8,1 

Figure 13: Domestic use of revenues from auctioning of ETS allowances 2013-2018 (EUR billion) 

19 

 
 
 
 
 
 
 
 
New Entrants Reserve (NER) 300 

NER  300  is  one  of  the  world’s  largest  funding  programmes  for  innovative  low-carbon 
energy  demonstration  projects.  It  is  funded  from  the  monetisation  of  300  million  EU  ETS 
emission allowances.  

As a result of two calls for proposals, 38 renewable energy projects and one carbon capture 
and storage project have been awarded funding, in 20 EU Member States and amounting to 
EUR  2.1  billion.  Seven  projects  are  operational  and  five  projects  are  expected  to  enter  in 
operation  by  the  end  of  2019.  Four  projects  are  advancing  in  their  preparations  to  enter  in 
operation by 30 June 2021 at the latest.  

Given  the  challenging  economic  and  policy  context  since  the  NER  300  programme  was 
designed,  19  projects  that  had  been  selected  for  funding,  have  not  been  able  to  raise 
sufficient  additional  financial  support  and  were  withdrawn  by  July  2019.  Four  further 
projects  are  under  various  stages  of  development.The  withdrawals  from  the  two  calls  for 
proposals have liberated a total of EUR 1 358 million to be re-invested into existing financial 
instruments  (EUR  623 million  from  withdrawn  from  the  first  call)  and  into  the  Innovation 
Fund (EUR 735,5 million from the second call) (see Box).  

20 

 
 
InnovFin Energy Demonstration projects 

The released funds from the cancelled projects from the first call for proposals (EUR 623 
million so far) are re-invested in the InnovFin Energy Demonstration Projects and the 
Connecting Europe Facility Debt Instrument, both managed by the European Investment 
Bank.  

So far, three projects have been selected to benefit from NER 300 unspent funds under the 
InnovFin EDP, amounting to some EUR 73 million: 

1.  Wave Roller: NER300 contribution will amount to EUR 10 million; 
2.  Windfloat:  the  project  is  supported  by  an  InnovFin  EDP  financing  of  EUR  60 
million  from  NER300 unspent  funds. WindFloat also  benefits  from a  grant  under 
the original NER300 programme amounting to almost EUR 30 million; 

3.  Greenway  EV  Charging  Network:  the  project  was  awarded  EIB  financing  under 
InnovFin EDP amounting to EUR 17 million of which almost EUR 3 million come 
from the NER 300 unspent funds. 

In addition, four projects have benefited from project development assistance financed by 
NER 300 unspent funds.  

The Windfloat project, Portugal 

Innovation Fund 
The Innovation Fund was established by the revised ETS Directive36. At a carbon price of 20 
EUR/tCO2,    EUR10  billion  would  be  mobilised  for  supporting  the  demonstration  of 
innovative technologies and breakthrough innovation in sectors covered by the EU ETS on a 
competitive basis. The Delegated Regulation on the operation of the Innovation Fund entered 

36 Directive (EU) 2018/410 of 14 March 2018 of the European Parliament and of the Council, amending 
Directive 2003/87/EC establishing a system for greenhouse gas emission allowance trading within the Union, 
Article 10a(8). 

21 

 
 
 
                                                           
 
 
into  force  in  May  201937.  Throughout  2019,  the  Commission  has  been  actively  engaged  in 
outreach  activities  with  industry  and  with  Member  States  to  raise  awareness  about  the 
Innovation  Fund  and  to  discuss  key  issues  for  each  sector  related  to  the  selection  and 
implementation  of    projects.  The  first  call  for  proposals  is  planned  to  be  launched  in  mid-
2020, followed by regular calls until 203038.  

Modernisation Fund 

The  Modernisation  Fund  will  support  low-carbon  investments  in  the  energy  systems  of  ten 
low-income  EU  Member  States39  in  shares  pre-defined  by  the  ETS  Directive.  At  a  carbon 
price of 20 EUR/tCO2, some EUR 14 billion will be generated over the coming decade. The 
size  of  the  fund  more  than  doubled  following  the  decision  from  five  Member  States  to 
transfer  part  of  their  solidarity  and/or  transitional  free  allowances.  The  European 
Commission’s work on establishing the Modernisation Fund started with a series of technical 
workshops in all beneficiary Member States from September 2018 to January 2019. Further 
preparatory work is taking place towards adoption of an Implementing Act in the first half of 
2020.  

LIFE – Climate Action 

The LIFE programme is the EU’s funding instrument for the environment and climate action; 
it co-finances projects  with European  added value. The total  budget  for funding projects  in 
2014-2020 amounts to EUR 2.5 billion under the sub-programme for environment and EUR 
0.86  billion  under  the  sub-programme  for  climate  action.  Most  LIFE  Environment  projects 
also bring climate co-benefits. 

LIFE  Climate  Action  supports  mitigation  and  adaptation  projects,  and  climate  governance 
and information. In LIFE call 2018, proposals involving beneficiaries from 21 Member States 
were recommended for funding, with Spain, Italy and Germany, attracting the most. 

The proposed multiannual financial framework for 2021 – 2027  includes an increased budget 
of EUR 5.45 billion for the LIFE programme for Environment and Climate Action . 

In the field of climate action there will be two sub-programmes: ‘Climate Change Mitigation 
and Adaptation’ and ‘Clean Energy Transition’. The size of the Climate Action budget during 
2021-2027 is expected to be some EUR 1 billion. The activities of the sub-programme Clean 
Energy Transition are currently funded by Horizon 2020 and will be endowed with a similar 
budget.  

37    28/05/2019 - C(2019) 1492 - Commission Delegated Regulation (EU) 2019/856 supplementing Directive 
2003/87/EC with regard to the operation of the Innovation Fund    
38 https://ec.europa.eu/clima/policies/innovation-fund_en 
39  
BG, CZ, EE, HR, LV, LT, HU, PL, RO and SK. 

22 

 
 
                                                           
1 

0,95 

Nature and biodiversity

2,15 

Circular economy and quality of
life

Climate change mitigation and
adaptation

1,35 

Clean energy transition

Figure 14: Proposed budget allocation for LIFE 2021-2027 

7.  ADAPTING TO CLIMATE CHANGE  

Over  the  last  year,  further  progress  has  been  achieved  under  the  EU  Adaptation  Strategy, 
which was adopted in 2013 to prepare Member States for current and future climate impacts:  

  26 Member States have now a national adaptation strategy in place, while the other 

Member States are close to finalising their strategies40;  

  more than 1 900 cities and towns in Europe have committed through the Covenant of 
Mayors to enhancing their climate resilience (increase of some 900 since 2018); 

  several draft national energy and climate plans contain adaptation goals;  

 

the CLIMATE-Adapt platform has been upgraded; 

 

the European Commission has released an update of its PESETA study41 on a range 
of climate impacts, including an economic assessment; 

 

the LIFE programme funds adaptation projects in crucial areas e.g. water resources.  

40   Croatia and Bulgaria are still working on their national strategies.  
41 https://ec.europa.eu/jrc/en/peseta-iii  

23 

 
 
 
 
 
 
                                                           
The  AgroClimaWater42  project  promotes  water  efficiency  and  supports  a  shift  to  more 
climate-resilient agriculture in Mediterranean countries. LIFE programme provides EUR 1.4 
millionof support to it..  

The pilot actions of the project focus on olive, citrus and peach orchards. The farmers taking 
part are adapting their methods to achieve the highest possible yields, despite low or erratic 
water  availability.  After  only  two  years  of  implementation,  LIFE  AgroClimaWater  has 
achieved impressive results, such as a 15% reduction in water use and 50% less nutrient use 
in  Italy,  and  a  26%  increased  yield  of  the  Greek  pilot  plots  despite  the  extreme  climate 
conditions in 2018. 

The EU Adaptation Strategy was evaluated in 2018 with positive conclusions43. Some of the 
lessons learned could help defining  future adaptation action in Europe, for example: 

 

International  developments  have  brought  about  a  need  for  the  EU  to  align  its 
adaptation action with the Paris Agreement, the Sendai Framework for Disaster Risk 
Reduction and the sustainable development goals; 

  The need to adapt to accelerating changes is even bigger than when the Strategy was 
adopted:  we  need  to  better  strengthen  infrastructure  against  extreme  weather  and 
climate change impacts;  

  Ecosystem-based  approaches  need  to  be  better  embedded  in  the  assessment  and 

choice of adaptation options; 

  Public health issues should receive more attention in adaptation policy and planning.  

Under the Horizon Europe, a Mission on adaptation and societal transformation has been 
launched. The mission board is chaired by Ms Connie Hedegaard. Horizon Europe’s missions 
will secure and  guide research and innovation, and will engage industry and public support 
through ambitious and communicable milestones. 

8.  INTERNATIONAL CLIMATE COOPERATION 

Aviation 

In 2018, the International Civil Aviation Organisation (ICAO) Council adopted standards and 
recommended  practices  (SARPs)  as  part  of  its  carbon  offsetting  and  reduction  scheme  for 
international  aviation  (CORSIA).  The  objective  of  CORSIA  is  to  stabilise  the  impact  of 
international aviation emissions at 2020 levels through offsetting.  

At  ICAO  level,  the  implementation  is  ongoing  but  still  incomplete.  The  first  monitoring 
obligations  started  in  2019  and  a  pilot  phase  will  begin  from  2021  onwards.  While  81 
countries,  covering  76.6%  of  global  emissions  have  already  volounteered  to  join  as  from 
2021, there are still uncertainties related to the final coverage and robustness of the scheme, 
due to the non-participation of countries with important aviation activity, and decisions still 
having to be taken on the emission units eligible for offsetting. 

42 http://www.lifeagroclimawater.eu/  
43 https://ec.europa.eu/clima/policies/adaptation/what_en 

24 

 
 
 
                                                           
The EU Member States  notified44  ICAO of the existing differences between the features of 
the EU ETS for aviation and the legally-binding features of CORSIA contained in the SARPs 
to protect the EU’s policy space.  

Maritime  

In 2018, the International Maritime Organization (IMO) adopted its strategy on the reduction 
of GHG emissions from ships, including an international commitment to reduce emissions by 
at  least  50%  by  2050  compared  to  2008  levels  (including  intermediate  carbon  intensity 
targets). As members of the International Maritime Organization, EU Member States need to 
act on this commitment.  

The IMO Strategy includes a list of candidate short, mid and long-term measures to achieve 
the  objectives  of  the  strategy,  giving  priority  to  those  measures  that  can  deliver  further 
emission reductions already before 2023, also building on existing IMO mesures, such as the 
Energy  Efficiency  Design  Index  and  the  Ship  Energy  Efficiency  Management  Plan.  The 
European Commission is closely involved in the ongoing negotiations of  concrete measures 
at IMO, including proposals made by EU Member States.  

In  2018,  the  ships  calling  at  European  Economic  Area  ports  started  to  monitor  and  report 
their  emissions,  with  first  emission  data  published  on  30  June  201945.  This  system  aims  to 
provide  robust 
the  necessary 
transparency to stimulate up-take of energy efficient technologies and behaviour. By the end 
of 2019 the European Commission will finalise a report on the first  year functioning of the 
system. 

to  support  policy-making  decisions  and 

information 

Under  the  International  Maritime  Organisation  (IMO),  monitoring  activities  on  fuel  oil 
consumption of ships started on 1 January 2019  with  first  reports due in  2020. As a result, 
ships calling into EU ports have to report under both the EU maritime Monitoring, Reporting 
and Verification (MRV) Regulation  and the IMO data collection system. 

Supporting developing countries  

The EU and its Member States remain the world’s biggest providers of official development 
assistance to developing countries, delivering EUR 74.4 billion in 2018. The EU, its Member 
States  and  the  European  Investment  Bank  are  also  the  largest  providers  of  public  climate 
finance, with a contribution of EUR 20.4 billion in 2017 (latest available figure)46.  

For the Green Climate Fund (GCF), EU Member States have committed a total of USD 4.7 
billion during the Fund’s initial resource mobilisation, accounting for almost half of the USD 
10.3  billion  of  total  pledges.  The  role  of  Europe  will  likely  further  grow  in  the  future. 
Germany and Norway are the first countries that have announced a doubling of contributions 
in the ongoing GCF replenishment round.    

The Global Climate Change Alliance Plus (GCCA+) is an EU climate flagship initiative. In 
the period 2007-2020, it provides grants of EUR 750 million for climate action and capacity 
development  in  developing  countries,  mostly  Least  Developed  Countries  and  Small  Islands 
Developing  States.  In  the  current  updating  of  Nationally  Determined  Contributions  to  the 

44   https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32018D2027  
45 Regulation (EU) 2015/757 on the monitoring, reporting and verification (MRV) of CO2 emissions 
46 2018 EU climate finance figures will be published in autumn 2019 Council conclusions on climate finance. 

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Paris Agreement, the GCCA+ supports partners in climate policy making and the planning of 
ambitious climate mitigation and adaptation.  

The  EU  External  Investment  Plan  encourages  investment  in  developing  countries  in  Africa 
and  the  EU  Neighbourhood  region.  So  far,  eight  guarantees  will  help  to  set  up  and  expand 
renewable  energy  and  connectivity  projects  to  millions  of  people  in  partner  countries.  For 
example,  the  European  Guarantee  for  Renewable  Energy,  led  by  four  European  financial 
institutions,  would  leverage  up  to  EUR  3.4  billion  for  projects  in  Sub-Saharan  Africa.  The 
projects  would  cut  carbon emissions, reduce power shortages, create up to  12 000 jobs and 
add around 2 GW of generating capacity from renewable sources.   

Negotiations  on  a  new  partnership  between  the  EU  and  the  ACP  (African,  Caribbean  and 
Pacific)  region  after  2020  have  started  on  28  September  2018.  The  planned  post-Cotonou 
Agreement47 shall include a strong joint commitment to climate action. Additionally, a new 
Africa – Europe Alliance for Sustainable Investment and Jobs was launched in 2018, which 
among other issues aims to boost environmental and labour protection.  

ETS-linking with Switzerland  

After  signing  an  agreement  in  November  2017  to  link  their  emissions  trading  systems, 
parliaments  of  both  the  EU  and  Switzerland  have  now  approved  the  agreement.  In  a  next 
step,  Switzerland  and  the  EU  have  to  ratify  the  linking  agreement  for  the  link  to  become 
operational as of 1 January 2020. 

47 The Cotonou Agreement is the overarching framework for EU relations with ACP countries. It will expire in 
February 2020. 

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