COMMISSION STAFF WORKING DOCUMENT Technical information Accompanying the document REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL EU Climate Action Progress Report 2025
Date: 2025-11-06
Institutions: Directorate-General for Climate Action, European Commission
Subjects: EU Emissions Trading Scheme, EU environmental policy, adaptation to climate change, carbon neutrality, climate change, environmental cooperation, forestry policy, investment, land use, pollution control measures

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 6.11.2025  SWD(2025) 347 final  COMMISSION STAFF WORKING DOCUMENT Technical information Accompanying the document REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL EU Climate Action Progress Report 2025 {COM(2025) 668 final}  
 
 
Table of Contents 

1  Overview of EU climate targets ........................................................................... 3 

2  EU climate targets and scope estimates .............................................................. 5 

2.1 EU climate targets as defined in the European Climate Law ................................ 5 

2.2 The EU target scope ......................................................................................... 6 

2.3 Methodology ................................................................................................... 9 

2.4 Emission estimates ....................................................................................... 12 

3  EU’s greenhouse gas emissions: trends and projections ..................................... 14 

3.1 EU greenhouse gas emissions and removals: recent developments .................. 14 

3.2 Drivers of greenhouse gas emission reduction since 1990 ................................ 19 

3.3 Progress towards climate neutrality ................................................................ 21 

3.4 Additional greenhouse gases indicators .......................................................... 30 

4  EU’s greenhouse gas emissions by sectors ........................................................ 34 

4.1 Energy supply emissions ................................................................................ 35 

4.2 Industry emissions......................................................................................... 42 

4.3 Transport emissions ...................................................................................... 51 

4.4 Buildings emissions ....................................................................................... 57 

4.5 Waste emissions ........................................................................................... 64 

4.6 Agriculture emissions .................................................................................... 72 

5 

The EU’s 2030 NDC under the UNFCCC ............................................................. 80 

6  Report on the quality of petrol and diesel fuel used for road transport in the EU 
(reporting year 2023) ............................................................................................... 83 

6.1 Introduction .................................................................................................. 83 

6.2 Volumes and life cycle greenhouse gas intensity of fuel and energy types .......... 83 

6.3 Overview of the EU’s 2023 fuel quality data...................................................... 89 

7  EU ETS emissions ............................................................................................ 93 

8  Use of revenues from auctioning of ETS allowances ........................................... 94 

9  Emissions covered by the effort sharing legislation ............................................ 110 

10  LULUCF.......................................................................................................... 129 

11  Climate resilience and adaptation .................................................................... 131 

11.1 Progress by Member States ......................................................................... 131 

11.2 Just resilience and inclusion of vulnerable groups ......................................... 133 

12  Examples of funding of climate related projects ................................................ 136 

1 

 
 
12.1 Example of project funded by the Innovation Fund ........................................ 136 

12.2 Example of project funded by the Modernisation Fund ................................... 138 

12.3 Examples of projects funded by the Recovery and Resilience Facility ............. 139 

12.4 Examples of project on land and nature ........................................................ 141 

12.5 Examples of project on preparedness and resilience ..................................... 143 

12.6 Examples of project on society and communities .......................................... 144 

12.7 Examples of projects on international initiatives ........................................... 145 

2 

 
 
 
 
1  Overview of EU climate targets 

Table 1: Overview of EU climate targets 

International 
commitments 

Paris Agreement 

EU domestic targets 

2030 Climate and Energy Framework 

EU ETS 1 

EU ETS 2 1 

Effort Sharing 
Regulation (ESR) 

LULUCF 

Target year 

2030 

2030 

Overall emission 
reduction target 

at least -55% net 
emissions  

at least -55% net domestic reduction vs 1990 

2050 

2050 

-40%  

Annual binding 
targets by MS ranging 
from -10% to -50%.  

First phase 2021-
2025 ‘no-debit' 
commitment to 
maintain current 
carbon sink 
levels. In a 
second phase 
2026-2030:  EU-
wide target of -42 
Mt by 2030 
compared to the 
LULUCF 
category's 
inventory average 

climate neutrality (balance 
between emissions and 
removals) 

Emission 
reduction target 

-62% 

-42% 

1 Surrendering of allowances under the new ETS 2 will start in 2027. 

3 

 
 
 
  
 
 
 
Base year 

1990 

2005 

2005 

1990 for overall emission reduction target 

for the years 
2016-18, each 
MS will have 
nationally 
binding 2030 
targets 
Subject to 
accounting rules 

No 

Indefinite validity of allowances not limited 
to trading periods. No need to carry over. 

No 

No 

N/A 

No 

Carry-over of 
units from 
preceding 
periods 2 

Gases covered 

CO2, CH4, N2O, 
HFCs, PFCs, SF6, 
NF3 

CO2, CH4, N2O, HFCs, 
PFCs, SF6  

CO2, CH4, N2O, 
HFCs, PFCs, SF6  

Sectors included 

Energy, industry, 
agriculture, 
waste, LULUCF 

Electricity & heat 
generation, energy-
intensive industry, 
aviation 3, maritime 4  

Buildings, road 
transport and 
small-emitting 
sectors (i.e. 
emissions from 
fuel combustion 
in these sectors) 

CO2, CH4, N2O 

CO2, CH4, N2O, SF6, NF3,  
HFCs, PFCs 

Land use, land use 
change and forestry 

All sectors 

CO2, CH4, 
N2O, HFCs, 
PFCs, SF6, NF3 
Domestic 
transport 
(except 
aviation), 
buildings, 
non-ETS 
industry, 
agriculture 
and waste 

Global Warming 
Potentials used 

IPCC AR5 

IPCC AR5 

IPCC AR5 

2 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. For the effort sharing legislation it refers to carry 
over from ESD to ESR. For LULUCF it refers to carry-over from Kyoto Protocol period. 
3 Emissions from flights between EEA airports as well as flights departing to airports in Switzerland and in the UK. 
4 Emissions from all large ships entering EU ports in respect of 50% of emissions from voyages starting or ending outside of the EU and 100% of emissions that occur between two EU 
ports and when ships are within EU ports. 

4 

 
 
 
 
2  EU climate targets and scope estimates 

According to the European Climate Law 5 the scope of the EU’s climate target goes 
beyond domestic GHG emissions and removals in national GHG inventory; it also includes 
specific emissions from international aviation and navigation. 

The 2024 Climate Action Progress Report provided a first estimate of GHG emissions 
falling within this scope. This refers to the estimation of the emissions from international 
aviation and maritime transport currently covered by the EU law, notably in the EU 
Emission Trading System (ETS). This is because the scope of the EU ETS has evolved since 
it was created in 2005, with the inclusion of new countries, activities and gases. It was 
therefore necessary to produce estimates of historical emissions, back to 1990, for 
aviation and maritime transport in line with the scope of the European Climate Law and 
consistently with the current scope of the EU ETS. The estimation was based on a 
methodology developed by the European Commission Joint Research Centre and publicly 
available 6. Those estimates have been extended and updated, based on the new GHG 
inventory and data available from the ETS emissions monitoring system. 

This chapter first describes the ‘perimeter’ of the 2050 climate-neutrality objective and the 
2030 climate target as set in the European Climate Law. It then sets out a definition of 
aggregates that more closely reflects their legal scope and the methodology that the 
Commission recommends for the estimation of the emissions since 1990. 

2.1 EU climate targets as defined in the European Climate Law 

Article 2(1) of the European Climate Law provides that: ‘Union-wide greenhouse gas 
emissions and removals regulated in Union law shall be balanced within the Union at the 
latest by 2050, thus reducing emissions to net zero by that date, and the Union shall aim to 
achieve negative emissions thereafter.’ 

The 2050 objective is set at EU level and is economy wide. It is to be achieved 
domestically, without the use of international credits. The following GHG are covered: 

•  carbon dioxide (CO2), 
•  methane (CH4), 
•  nitrous oxide (N2O), 
•  sulphur hexafluoride (SF6), 
•  nitrogen trifluoride (NF3), 
•  hydrofluorocarbons (HFCs) 7, 

5 Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 establishing the framework 
for achieving climate neutrality and amending Regulations (EC) No 401/2009 and (EU) 2018/1999 (‘European Climate 
Law’), OJ L 243, 9.7.2021, p. 1. 
6 https://publications.jrc.ec.europa.eu/repository/handle/JRC139028 
7 See list HFCs in Part 2 of Annex V to Regulation (EU) 2018/1999. 

5 

 
 
•  perfluorocarbons (PFCs) 8. 

The emissions and removals regulated in EU law can change over time. There should be a 
territorial link with the EU, and the exact territorial scope is set by the acts that regulate the 
GHG emissions and removals. 

Article 4(1) on intermediate EU climate targets provides that: ‘In order to reach the climate-
neutrality objective set out in Article 2(1), the binding Union 2030 climate target shall be a 
domestic reduction of net greenhouse gas emissions (emissions after deduction of 
removals) by at least 55% compared with 1990 levels by 2030.’ 

Therefore, the 2030 climate target is a step on the way to achieving the 2050 climate-
neutrality objective, and the scopes should be consistent. It is a domestic reduction, 
meaning without using international credits, economy-wide, net, and covers the same 
greenhouse gases as the 2050 climate-neutrality objective (listed in Part 2 of Annex V to 
Regulation (EU) 2018/1999). 

2.2 The EU target scope 

Based on the above, the scope that best represent the EU’s climate mitigation target can 
be obtained by adding to the EU total domestic GHG emission, including LULUCF, the EU 
emissions from international aviation and maritime transport regulated in EU Law. 

Aviation 

In particular, and for the purpose of tracking the progress towards the EU climate target, 
EU emissions cover CO2 emissions from flights between the EU Member States and 
departing flights to Iceland, Norway 9, Switzerland and the United Kingdom. International 
aviation also covers CO2 emissions from non-domestic flights between EU Member States 
and the outermost regions 10. It should be noted that the EU target scope differs from that 
of the EU ETS. 

8 See list PFCs in Part 2 of Annex V to Regulation (EU) 2018/1999 
9 These are flights to countries of the European Economic Area, which also encompasses Liechtenstein. Currently 
Iceland and Norway have commercial airports, Liechtenstein does not, therefore it is not listed here. 
10 Since 1 January 2024, the revised EU ETS also covers non-domestic flights to and from outermost regions that were 
previously exempted. The outermost regions are: i) France: French Guiana, Guadeloupe, Martinique, Mayotte, Reunion, 
Saint Martin; ii) Spain: Canary Islands; iii) Portugal: Azores, Madeira. 

6 

 
 
Figure 1: Illustration of emissions from aviation covered by the EU target scope 

outermost 
regions 

EU-27 

Iceland and Norway 

Switzerland and the UK 

The scope of the EU target may change 
following the mid-2026 review of the EU 
ETS. 

By July 2026, the European Commission will make a legislative proposal to review the EU 
ETS including scope for aviation. This will follow a Commission assessment of the 
ambition of and participation in carbon offsetting and reduction scheme for international 
aviation (CORSIA), in line with the revised EU ETS Directive 11. Consequently, the target 
scope may be adjusted accordingly. 

Table 2: Aviation emissions covered by the EU climate target 

Flights 

Domestic 
aviation 

Example 

EU 2030 target 
scope 

Domestic flights in EU countries 

Palermo-Rome 

Domestic flights in Iceland and Norway 

Oslo-Bergen 

Yes 

No 

Domestic flights to/from outermost 
regions 

Canary Islands-Madrid 

Yes  
(covered by ESR) 

Flights between Iceland and Norway 

Oslo-Reykjavik 

Intra-EEA 
aviation 

Flights from Iceland and Norway to the 
EU 

Flights from the EU to Iceland and 
Norway 

Oslo-Brussels 

Brussels-Oslo 

No 

No 

Yes 

Flights between the EU and outermost 
regions 

Paris-Canary Islands 

Yes  
(since 01/ 2024) 

Extra-EEA 
aviation 

Departing flights from EU to the UK and 
Switzerland 

Prague-London 

Flights from the UK and Switzerland to 
the EU 

London-Prague 

Yes 

No 

11 https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex:32023L0958 

7 

 
 
 
 
 
 
 
 
 
 
 
Flights between the EU and other 
countries 

Rome-New York 

No 

Maritime 

Emissions from international maritime transport includes GHG emissions (i.e. CO2 and 
from 2026 also CH4, N2O) from cargo and passenger ships of or above 5 000 GT as follows: 

•  50% of emissions from voyages departing from a port outside the jurisdiction of an 
EU Member State and arriving at a port under the jurisdiction of an EU Member 
State; 

•  50% of emissions from voyages departing from a port under the jurisdiction of an EU 
Member State and arriving at a port outside the jurisdiction of an EU Member State; 
•  100% of emissions from voyages departing from a port under the jurisdiction of an 

EU Member State and arriving at a port under the jurisdiction of another EU Member 
State; 

•  100% of emissions within a port under the jurisdiction of an EU Member State. 

Figure 2: Illustration of maritime transport covered by the EU target scope 

Table 3: Maritime emissions covered by the EU climate target 

Voyages 

Domestic 
maritime 
transport 

International 
maritime 
transport 

Example 

EU 2030 target 
scope 

Voyages in EU countries 

Valencia-Barcelona 

Yes 

Voyages in Norway/Iceland 

Oslo-Bergen 

No 

Voyages between two EU countries 

Valencia-Rotterdam 

Yes 

Voyages between an EU country and 
Norway/Iceland 

Rotterdam-Oslo 

Yes (50%) 

8 

 
 
 
 
 
 
 
Voyages between an EU country and 
other country 

Rotterdam-Houston 

Yes (50%) 

Voyages between Norway/Iceland and 
other country (or Iceland/Norway) 

Oslo-Houston 

Within port 

’Within port’ emissions in an EU port 

’Within port’ emissions in a port in 
Norway / Iceland / other country 

2.3 Methodology 

No 

Yes 

No 

International aviation and maritime emissions covered by the EU targets, as defined in the 
European Climate Law, are estimated by using the Joint Research Centre’s Integrated 
Database of the European Energy System (JRC-IDEES) 12. It allows to split the international 
transport CO2 emissions into intra-EU/extra-EU and intra-EEA/extra-EEA categories 
backwards in time (i.e. 1990) 13. 

For international transport, JRC-IDEES applies a decomposition methodology that 
reconciles the scopes of available primary statistics and harmonises historical data on 
international aviation and maritime emissions, energy use, and transport activity. The 
resulting annual dataset covers 1990-2023 and distinguishes between domestic, 
intraEU/intraEEA, and extraEU/extraEEA activity for each EU Member State, Iceland and 
Norway. 

In aviation, JRC-IDEES distinguishes between passenger and freight modes, with three 
geographical categories of flight origin/destinations for each mode: domestic, intra-
EEA+UK, and extra-EEA+UK (Figure 3). 

12 European Commission, Joint Research Centre, Jaxa-Rozen, M., Rozsai, M. and Neuwahl, F., Aligning historical 
international aviation and maritime transport data to the scope of EU climate policies, Publications Office of the 
European Union, Luxembourg, JRC139028. https://publications.jrc.ec.europa.eu/repository/handle/JRC139028 
13 The JRC-IDEES analytical database is designed to support energy modelling and policy analysis, by combining primary 
statistics with technical assumptions to compile detailed energy-economy-emissions historical data for each key energy 
sector. For aviation, EEA emissions include those related to the UK but not to Switzerland, where total CO2 emissions for 
the scope are additionally estimated from EUROCONTROL data. 

9 

 
 
 
 
 
 
 
 
Figure 3: Aviation emissions - overview of the methodology 

Intra-EU, UK, and EEA categories are also used internally during calibration but aggregated 
for reporting. For each mode/category combination, JRC-IDEES estimates activity (as 
passenger-km or tonne-km), energy use and CO2 emissions, aircraft stock (expressed as 
representative aircraft), load factors, and aircraft efficiencies. As country-specific activity 
statistics are not available, the decomposition first allocates EU-level activity data from 
the DG MOVE Transport Pocketbook to each country and flight category. 

For passenger modes, this allocation calculates average load factors using Eurostat data 
on total passengers and flights. These load factors and total flight numbers are combined 
with average flight distances from EUROCONTROL to yield an initial estimate for passenger 
transport activity. For intra-EU activity, a uniform scaling factor is then applied across 
Member States to match total EU-level Transport Pocketbook data. Freight activity follows 
a similar process, using a “representative flight” concept with a common load factor 
across all Member States to account for mixed passenger-freight flights. 

Next, the decomposition estimates fuel use from EUROCONTROL data, by deriving a 
distance-dependent average aircraft efficiency then applying it to the country-specific 
ensemble of flights and routes. The final step scales the estimates to meet Eurostat energy 
balances for total domestic and international consumption back to 1990 values, 
maintaining intra-EEA/extra-EEA fuel use ratios derived from EUROCONTROL. JRC-IDEES 
additionally reports resulting differences with UNFCCC country submissions. The above 
process is followed throughout the entire decomposition period (1990-2023). Data gaps 
are estimated from the existing indicators as follows: 

10 

 
•  The process iterates backwards towards 1990, starting from the oldest years in 

which data is available in each Member State. 

•  Average flight distance is kept constant for early years without EUROCONTROL data 

• 

(generally before 2004). 
If the load factor (passengers per flight) cannot be calculated by lack of passenger 
and/or flight data, it is estimated from the trend of the existing time series. 

•  Missing numbers of flights are calculated from the load factor and the passengers 

• 

carried. 
If no passenger data is available, the total mileage is estimated from the energy 
consumption and combined with average flight distance to estimate the number of 
flights. The number of flights is then combined with the load factor to estimate the 
total passengers carried. 

•  For early years without data, constant values are assumed for the factors used to i) 
scale intra-EU activity to the Transport Pocketbook, ii) adjust the estimated fuel use 
to EUROCONTROL data for specific routes, and iii) scale this adjusted fuel use to 
Eurostat energy balances (e.g. before 1995 for Transport Pocketbook data; before 
2004 for EUROCONTROL data). 

For international maritime bunkers, JRC-IDEES estimates data both for intraEU/extraEU 
and intraEEA/extraEEA geographical categories. For the present exercise, the emission 
estimates already include CO2, CH4, and N2O gases. Transport activity (tonne-km) is 
estimated from Eurostat data on gross weight of transported goods, using port-level and 
country-level data for intra-EU and extra-EU categories, respectively. Intra-EU activities are 
then scaled to match the DG MOVE Transport Pocketbook totals, accounting for domestic 
coastal shipping (calibrated separately in JRC-IDEES). Next, transport activity is combined 
with THETIS MRV EU-level mileage data and country-specific vessel sizes to estimate load 
factors (tonne per movement). The load factors and resulting annual mileage (km) are 
calibrated to meet EU-level THETIS MRV mileage. The annual mileage is in turn combined 
with THETIS MRV average efficiency to yield a total technical energy consumption, with 
corresponding emissions derived from default emissions factors. This energy consumption 
is scaled to Eurostat energy balances to minimize discrepancy to total intra-EU THETIS 
MRV emissions. The scaling accounts for partial coverage of emissions reported to THETIS 
MRV under the scope of the MRV regulation prior to its 2023 revision (i.e. excluding ships 
below 5000 GT); the contributions of ships below 5000 GT to intra EU emissions is 
estimated from analysis supporting the review of the MRV regulation. As with aviation, JRC-
IDEES reports corresponding differences to UNFCCC submissions. Early years with data 
gaps are estimated from existing indicators as follows: 

•  The process iterates backwards towards 1990, starting from the oldest years in 

which data is available in each Member State. 

11 

 
•  Average distance of voyages is kept constant for early years without Eurostat 

• 

activity data (generally before 1997-2000). 
If the load factor (tonnes per movement) cannot be estimated by lack of activity 
data, it is kept constant. 
If activity data is not available, it is estimated from Eurostat energy consumption. 

• 
•  Missing mileage data is derived from the activity and load factor estimates. 
•  For early years without data, constant values are assumed for the factors used to i) 
scale intra-EU activity to the Transport Pocketbook, ii) scale estimated mileage to 
meet EU-level THETIS MRV mileage, and iii) scale domestic and intra-EU CO2 
emissions estimated from energy consumption to match total THETIS MRV CO2 
emissions. 

•  Finally, the ratios between the estimated MRV emissions and the CO2 emissions for 
the reported transport activity (for intra-EU/EEA and extra-EU/EEA categories) 
between 2018 and 2023 are used to calculate the MRV compliant estimates back to 
1990 levels. 

2.4 Emission estimates 

Figure 4: EU-27 GHG international aviation and maritime transport under the EU target scope (1990-2024), 
Commission’s estimates 

Notes: Target scope includes: (i) for International aviation, intra-EU flights, departing flights from EU27 to EEA (non-
EU) countries, to UK and to CH; International aviation also covers CO2 emissions from non-domestic flights between 
EU Member States and the outermost regions. (ii) For International maritime: emissions from voyages between two 
EU27 Member States, 50% of emissions from voyages between a EU27 Member State and NO/IS, 50% of emissions 
from voyages between an EU27 Member States and a third country. 

12 

 
 
 
Table 4: EU-27 GHG emissions under the EU target scope (1990-2024), Commission’s estimates 

Notes: Target scope includes: (i) for International aviation, intra-EU flights, departing flights from EU27 to EEA (non-EU) 
countries, to UK and to CH; International aviation also covers CO2 emissions from non-domestic flights between EU 
Member States and the outermost regions (ii) for International maritime: emissions from voyages between two EU27 
Member States, 50% of emissions from voyages between an EU27 Member State and NO/IS, 50% of emissions from 
voyages between an EU27 Member States and a third country. The NDC scope includes: (i) International aviation as for 
the target scope; (ii) International maritime, emissions from voyages within the EU27 Member States. 

Table 5: Net GHG emissions in 1990, 2023 and 2024 (MtCO2-eq) 

1990 

2023 

2024 

2024/2023 

2024/1990 

Domestic 

Net domestic 

Target scope 

NDC scope 

4873 

4635 

4726 

4689 

3106 

2907 

3046 

3001 

3039 

2827 

2970 

2923 

-2.1% 

-2.8% 

-2.5% 

-2.6% 

-37.6% 

-39.0% 

-37.2% 

-37.7% 

13 

EU-27Source19901995200020052010201520202021202220232024(proxy)Total emissions (UNFCCC)EEA GHG 2025487345634455454641773813329734653376310630394 - Land Use, Land-Use Change and ForestryEEA GHG 2025-237-316-318-347-346-319-194-196-183-198-212Net GHG domestic emissionsEEA GHG 202546354248413741993831349531033269319229072827Intern. aviation under the EU climate target scopeJRC-IDEES-20252528364042461926505758Intern. navigation under the EU climate target scopeJRC-IDEES-20256666839897817780878285Intra-EU navigation (MRV compliant, NDC scope*)JRC-IDEES-20252930384042353234383739Net GHG emissions (target scope)own calculation47264343425643373970362231993375332930462970Net GHG emissions (NDC scope)own calculation46894306421142793914357531543329328130012923 
 
 
 
 
 
3  EU’s greenhouse gas emissions: trends and projections 

3.1 EU greenhouse gas emissions and removals: recent developments 

After the 2023 largest drop ever in the EU greenhouse gases (GHG) net emissions, 
preliminary 2024 data show a reduction of 2.8% compared with 2023, or 2.5% when 
emissions from international transport under the EU target scope are included 14. This 
translates into a reduction in GHG net emissions of 39% compared with the 1990 base 
year (or 37.2% when international transport under the EU target scope is included). 

Figure 5: Total EU GHG emissions and removals (1990-2024), linear trajectories to EU targets, and Member States’ 
latest GHG emissions projections (2030–2050) 

Notes: (1) Historical GHG emissions and removals (1990-2024) are based on European Environment Agency’s 2025 
GHG Inventory and GHG approximated emissions and removals (2024). (2) Linear trajectories for GHG emissions and 
removals are based on the legislated (2020, 2030) or proposed (2040) EU targets, while emissions and removals by 
2050 reflect estimates from the different model-based analyses supporting the ‘Delivering the European Green Deal’. 
(3) The -55% 2030 target (EU Climate Law) considers a contribution of removals of -225 MtCO2-eq. 

With only five years left until the second interim target to climate neutrality, progress 
appears to be in line with the linear trajectory needed to achieve the EU’s 2030 reduction 
target of a 55% decrease, although difference exists across sectors and policy 
instruments. Extrapolating the emission trends observed over the past five years forward to 

14 The EU GHG emission aggregate which better reflects the exact legal scope as provided by the European Climate Law 
can be obtained by adding to the EU-27 total domestic GHG emission, including LULUCF net emissions or removals, the 
EU-27 emissions from international aviation and maritime transport regulated in the Union Law. For more details, see 
Chapter 2 of this staff working document. 

14 

 
 
 
2030 suggests that emissions will fall short of the established target by around 6 
percentage points, or 280 MtCO2-eq, stressing the need for slightly accelerating the pace 
of decarbonisation, from the annual average cut of about 120 MtCO2-eq seen over 2018-
2023 to an emission reduction of 140 MtCO2-eq every year from now until 2030. 

The latest Member State’s projections from March 2025 show that this gap could be 
almost closed by 2030, but only if Member States fully implement all existing and 
additional measures (Table 6). Projections under the current policy scenario, still point to a 
significant gap of 8 percentage points to the EU 2030 reduction target of 55%. This 
highlights the critical importance of sustaining efforts and ensuring adequate investment 
to meet the 2030 target. 

Table 6: Progress to the EU 2030 climate target, main emission aggregates 

MtCO2-eq 

% 

Expected emissions reduction by 2030 

Historical 
1990 

Provisional 
2024 

change 
to 2023 

change 
to 1990 

5-years linear 
trend 

projections 
WEM 

projections 
WAM 

EU target scope 

EU domestic GHG emissions 

EU domestic GHG net emissions 

4726 

4873 

4635 

2970 

3039 

2827 

-2.5% 

-37.2% 

-2.1% 

-37.6% 

-2.8% 

-39.0% 

-49% 

-49% 

-51% 

-47% 

-48% 

-49% 

-54% 

-53% 

-56% 

Notes: (1) The EU target scope includes emissions from international aviation and maritime transport regulated in the EU 
Law. (2) Under the EU target scope, the contribution from LULUCF sink is limited to 225 MtCO2-eq (European Climate 
Law). 

However, there are differences across sectors and policies. Table 7 shows that emissions 
from international aviation and maritime are currently displaying the largest deviation from 
the 2030 target, although they contribute only for a small part of the overall emissions. If 
we assume a 62% reduction target, in line with the ETS sector, emissions in 2030 are 
expected to be between 83 and 95 MtCO2-eq above the target, according to both trends 
and Member States projections (specific climate action to address GHG emission in this 
sector are described in Chapter 2 of the Climate Action Progress Report). 

Emissions from the ESR sectors are another important source of potential deviation from 
the 2030 target. Emissions have been declining in the recent years, but the pace needs to 
accelerate to meet the 40% reduction target compared with 2005. According to the 
aggregated projections with existing and additional policies and measures, EU’s emissions 
are expected to reduce by 38%, pointing to a gap of around 50 MtCO2-eq. However, 
projections based on current policy scenario still point to a gap of 9 percentage points to 
the EU reduction target of 40% compared to ESR emissions in 2005. The gap widens when 
expected 2030 emissions are extrapolated from trends observed over the past five years 
(see Chapter 3 of the Climate Action Progress Report for a more detailed analysis of ESR 
emissions). 

15 

 
  
  
Conversely, emissions from power and industrial plants covered by the EU ETS system are 
on track to achieve the 62% reduction target compared with 2005. Based on the 
extrapolation of recent trends, ETS emissions are expected to even overachieve the 
reduction target, mainly thanks to the surge in renewables observed in recent years (see 
Chapter 2 of the report for a full assessment). 

Table 7: Progress to the EU 2030 climate target, by main policy instruments  

Base-year 

Ref. year 
(EU Reg.) 

Values 
(MtCO2-eq) 

ETS emissions (Stationary) 

ETS emissions(1) 

ESR emissions(2) 

LULUCF net emissions(3) 

Int. aviation and maritime(4) 

EU target scope 

2005 

2005 

2005 

n.a. 

2005 

1990 

2059 

2197 

2517 

n.a. 

138 

4726 

2030 targets 

Expected emissions change by 2030 

GHG 
reduction 

to base-
year 

-62% 

-62% 

-40% 

max contrib. 

-62% 

-55% 

Values 

compared with the base-year 

(MtCO2-eq) 

5-years 
linear trend 

projections 
WEM 

projections 
WAM 

782 

835 

1510 

-225 

52 

2120 

-65% 

-61% 

-28% 

-238 

-2% 

-49% 

-62% 

-58% 

-31% 

-183 

7% 

-47% 

-66% 

-61% 

-38% 

-233 

3% 

-54% 

Notes: (1) Target = -62% of 2005 ETS emissions. This include ETS1 emissions from stationary installations (i.e. power and 
industrial plants) and international aviation and maritime under EU Law. (2) Target = -40% of 2005 ESR emissions (Legal 
values from the ESR Regulation), ESR GHG projections as submitted by Member States in 2025; (3) Target = -225 MtCO2-
eq. Max contribution to the -55% EU climate target (European Climate Law), expected net emissions in 2030; (4) Target=-
62% of 2005 estimated GHG values (JRC/IDEES).  

The role of LULUCF sector merits specific considerations. The European Climate Law 
limits the contribution of the LULUCF sink in the EU 2030 target to 225 MtCO2-eq. For that 
reason, table 7 shows that according to Member States aggregated projections, this limit 
can likely be achieved. However, in recent years we observed a declining trend of the land 
and forest sink, and Member States’ projections are still falling short of the EU land-based 
net-removal 2030 target of an additional -42 MtCO2-eq 15 (see Chapter 4 of the report for 
more details). 

In 2024, according to preliminary data, GHG net emissions (i.e. including LULUCF) fell 
compared with 2023 in almost all Member States, with very large emission reductions in 
some (see Figure 6). They went down by more than 5% in 6 Member States (-12.9% in 
Latvia, -6.4% in Czechia and -5.4% in Poland and Germany, -5.3% in Croatia, -5.2% in 
Denmark) and between 1% and 5% in 11 other Member States (-4.1% in Greece, -3.6% in 
Bulgaria, -3.5% in Italy, -3.3% in Estonia, -3.1% in Malta, -2.3% in Austria, -2.1% in France, -
2.0% in Ireland, -1.5% in Luxembourg, -1.4% in Finland and -1.3% in Slovakia), with most of 
them also showing an increase of GDP. These falls in emissions were mainly driven by the 
power sector with less electricity generated by fossil fuels in almost all Member States and 
more electricity generated by renewables, mainly solar, hydroelectricity, and nuclear 
energy. Other sectors contributed to the decrease of emissions, although to a lesser 

15 As compared to the yearly average of net removals over the period 2016-2018. 

16 

 
  
  
  
 
extent. The increase in LULUCF net removals was an important driver in Germany, Latvia 
and Czechia. 

Conversely, in 2024, GHG emissions increased in a few Member States, especially in 
Sweden (+23.5%), Romania (+19.3%), Lithuania (+10.6%), Slovenia (+7.3%) and Cyprus 
(+4.7%). The main reason for the increase in emission in these countries is the combustion 
of fuels for transport in Sweden, Romania and Slovenia, LULUCF with less CO2 removals in 
Lithuania and the waste sector in Cyprus. 

Figure 6: 2023-2024 annual changes of net greenhouse gas emissions and GDP in EU Member States  

Notes: (1) EU GHG net emissions based on 2025 EU GHG inventory (EEA) for 2023 and approximated EU GHG 
inventory for 2024 (EEA), Eurostat for the GDP at constant price (2015, [nama_10_gdp]). (2) Bulgaria did not 
report approximated GHG inventory in 2025; emissions were gap-filled using publicly available data sets. 

17 

 
 
The 2025 greenhouse gas (GHG) inventory: revisions and impact 

EU GHG emissions fell by 2.5% between 2023 and 2024. So why does the figure for the 
overall change in emission relative to the 1990 baseline for 2024 emissions in this report 
appear very similar to the figure in last year’s CAPR? The answer lies in the 2025 
revision of the EU GHG inventory data. 

Each year, the CAPR relies on the most recent GHG inventories (GHGI) (submitted by 
Member States to the UNFCCC) available at the time of publication of the report: the 
2025 CAPR relies on the 2025 GHGI, and the 2024 CAPR relied on the 2024 GHGI. 

The GHG inventories can undergo revisions from one year to the next when Member 
States improve their methodologies. The 2025 GHGI has undergone substantial 
changes compared to the 2024 GHGI. 

The changes in the 2025 GHGI result in lower net GHG emission in 1990 (down by close 
to 15 MtCO2-eq) and higher emissions for recent years (up by around 60 MtCO2-eq) 
when compared to the 2024 GHGI. This is due mainly to a significant adjustment of the 
historical LULUCF data in the 2025 GHGI to reflect notably the latest understanding of 
forest developments 16. It translates ‘mechanically’ for a given recent year into a lower 
reduction number compared to 1990 in the 2025 GHGI than in the 2024 GHGI. 

Table 8 shows the change in GHG emissions compared to 1990 levels using the 2024 
GHGI (as in CAPR 2024) and using the 2025 GHGI (as in CAPR 2025) for the most recent 
years. While both GHGIs show continuity and comparability for the domestic GHGs 
excluding LULUCF, the change in the LULUCF data affects the comparability of the net 
GHGs including LULUCF between the 2024 CAPR and the 2025 CAPR. 

Table 8. Evolution of GHGs compared to 1990 in the 2024 GHG inventory and in the 2025 inventory 

GHGI 2024  
(used in CAPR 2024) 

GHGI 2025 
(used in CAPR 2025) 

MtCO2-eq 

GHG emissions excluding LULUCF (domestic) 

Total net GHG emissions (domestic) 

1990 

4867 

4650 

Total net GHG emissions (inc. international target scope***) 

4736 

2022 

2023* 

1990 

3375 

3138 

3257 

3125 

4873 

2869 

4635 

2987 

4726 

2022 

3376 

3192 

3329 

2023 

2024** 

3106 

2907 

3046 

3039 

2827 

2970 

Compared to 1990 

2022 

2023 

2022 

2023 

2024 

GHG emissions excluding LULUCF (domestic) 

-30.7% 

-35.8% 

-30.7% 

-36.3% 

-37.6% 

Total net GHG emissions (domestic) 

-32.5% 

-38.3% 

-31.1% 

-37.3% 

-39.0% 

Total net GHG emissions (inc. international target scope***) 

-31.2% 

-36.9% 

-29.5% 

-35.6% 

-37.2% 

*proxy data building on GHGI 2024; **proxy data building on GHGI 2025; ***international target scope estimate as described in the CAPR 

16 This is mainly the result of more accurate and updated national forest inventories, which showed that carbon stocks in 
forests are not increasing at the same pace as previously assumed, resulting in a downward revision to estimated carbon 
sink. https://www.eea.europa.eu/en/newsroom/news/greenhouse-gas-emissions-in-2023 

18 

 
 
 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
 
3.2 Drivers of greenhouse gas emission reduction since 1990 

A combination of factors has helped the EU to reduce total domestic greenhouse gas 
emissions (excluding the LULUCF sector) by 37.6% since 1990. Figure 7 shows an annual 
breakdown of this trend into factors using a decomposition analysis with an extended Kaya 
identity distinguishing five drivers 17. The underlying methodology follows that of earlier 
studies, e.g. by the European Environment Agency 18. As with all methods of this style, the 
effects should not be understood as an actual causality but rather a useful indication of 
the drivers’ contribution. 

Without technological advances in energy efficiency and carbon intensity, i.e. holding all 
other factors at 1990 level, the growth in GDP (income effect) and population (population 
effect) would have led to a substantial increase in GHG emissions. Economic growth 
would have caused increase by 37% and population growth increase by 6%. 

Figure 7: Drivers of total GHG emissions cumulated over 1990-2023 

Decomposition factors: 

𝐺𝐻𝐺 = 𝑃𝑂𝑃 ∗

𝐺𝐷𝑃
𝑃𝑂𝑃

∗

𝑃𝐸𝐶
𝐺𝐷𝑃

∗

𝐺𝐻𝐺𝐸
𝑃𝐸𝐶

∗

𝐺𝐻𝐺
𝐺𝐻𝐺𝐸

POP – Population 
GDP/POP – Income effect (GDP per capita) 
PEC/GDP – Energy intensity effect 
GHG_E/PEC – Carbon intensity effect 
GHG/GHG_E – Non-energy effect 

POP – Population 
GDP – Gross Domestic Product 
PEC – Primary Energy Consumption 
FFC – Fossil Fuel Consumption 
GHG_E – GHG emissions from energy combustion 
GHG – Total GHG emissions (excl. LULUCF) 

Data sources: EU inventories to the UNFCCC, 
Eurostat energy balances 

17 The Kaya identity is a mathematical identity stating that, in its original version, the total GHG emission level can be 
expressed as the product of four factors: human population, GDP per capita, energy intensity (per unit of GDP), and 
carbon intensity (emissions per unit of energy consumed). In this section we further decomposed the identity to 
distinguish emissions from fuel combustion from other emissions (non-energy effect). Other identities are possible. 
18 The methodology of the Logarithm Mean Divisia Index (LMDI) method and the formula itself can be found in the EEA 
report No 03/2020 on trends and drivers of EU greenhouse gas emissions. 

19 

 
 
 
 
 
 
 
However, just the emission reduction from the decrease in primary energy use per unit of 
output generated (energy intensity effect) more than compensated this and reduced 
emissions by 52%. Compared with 1990, 48% less energy was needed to produce a unit of 
GDP in 2023. There are several drivers behind this efficiency gain. Better energy 
transformation processes, for example through electrification, have happened. There is 
also a general shift to the less energy-hungry sectors. For example, the share of whole 
industry in total gross value added decreased from 20% in 1995 to 16.3% in 2023, although 
the share of energy intensive industry in manufacturing gross value added remained stable 
over the same years. 

The second important driver was the carbon intensity effect, i.e. the volume of emissions 
from one unit of produced energy, which taken individually, reduced emissions by 27%.  
The fuel switch plays a crucial role here. The share of fossil fuels in electricity and heat 
production decreased from 62% in 1990 to 34% in 2023, whereas the share of renewable 
and nuclear energy increased from 35% in 1990 to 61% in 2023. 

To set these achievements into perspective, Figure 8 combines this assessment of past 
emission trends with a glance into the future. Based on the European Commission’s 
central scenario supporting the Fit for 55 legislative package, a faster pace is needed in 
this decade to achieve the EU 2030 target. As in the last three decades, the modelling 
suggests the largest emission reductions will come from a substantially lower energy 
intensity (energy intensity should be lower by 22% in 2030) leading to decrease of total 
emissions by 13% and a less carbon-intense primary energy consumption (energy supply 
emissions should be lower by 21%) leading to a decrease of total emissions by 12%. 
Overall, energy-related emissions are expected to decrease faster than those from other 
sources as implied by the slightly positive non-energy effect. 

Figure 8: Effects on total GHG emissions between 1990-2023 and 2023-2030 based on the modelling for the 2030 
target (in % of 1990 emissions) 

20 

 
 
Notes: EU inventories submitted to the UNFCCC, Eurostat energy balances. A positive ‘non-energy effect’ means that 
the ratio between total GHG emissions and GHG emissions from fuel combustion is expected to reduce over time. The 
remaining total emissions excluding LULUCF as shown in the chart is in line with EU’s net emissions target of 55% 
mitigation. 

3.3 Progress towards climate neutrality 

In 2023, the Climate Action Progress Report 19 provided, for the first time, an assessment 
of progress under the European Climate Law 20 including the collective progress made by 
Member States towards the EU’s goal to achieve climate-neutrality by 2050 21. The 
assessment looked at progress on several aspects and from several sources, while 
considering the complexity inherent in the many possible paths to achieve a net-zero and 
resilient economy 22. 

Overall, the report concluded that the level of progress by Member States in recent years 
fell significantly short of the effort required over the coming decades to meet both the 
medium and the long-term EU climate targets. However, the assessment did not reflect 
the more ambitious climate intentions that Member States were expected to include in 
their revised NECPs. 

In December 2023, based on that assessment, the Commission issued country-specific 
recommendations 23 to ten Member States 24. The Commission urged them to rapidly 
accelerate action by making tangible progress on planned policies and by taking additional 
measures. Several Member States also faced sectoral weaknesses that needed to be 
remedied without further delay. 

Most of the concerned Member States (Austria, Cyprus, Czechia, Estonia, Ireland, Croatia, 
Latvia, Malta, Poland) received the recommendation to ‘Step up climate mitigation efforts, 
by making tangible progress on the existing and planned policies and consider additional, 
urgent measures to align the expected greenhouse gas emission reductions and 
projections with the climate-neutrality objective’. Additionally, some Member States 
received sector specific recommendations (Czechia, Poland, Ireland, Estonia, Latvia) 
targeting, for example, emissions in transport, agriculture, or enhancing removals in the 
LULUCF sector. 

19 COM/2023/653 final. 
20 Articles 6 to 8 of the European Climate Law (EUR-Lex - 32021R1119 - EN - EUR-Lex (europa.eu)). 
21 The EU climate-neutrality objective, set out in Article 2(1) of Regulation (EU) 2021/1119, is achieved when EU-wide GHG 
emissions and removals regulated in EU law are balanced within the EU at the latest by 2050, reducing emissions to net 
zero. The EU shall aim to achieve negative emissions thereafter. 
22 The assessment was based on the detailed analysis provided in Chapter 5 of the staff working document – ‘Technical 
information’ (SWD(2023) 339 final). 
23 Article 7(2) of the European Climate Law. 
24 BE, BG, CY, CZ, EE, IE, IT, HR, AT, LV, MT, PL. 

21 

 
 
Some Member States (Czechia, Cyprus, Croatia, Malta), and including also Belgium and 
Bulgaria, received an additional recommendation to ‘clarify the country’s long-term 
neutrality goal’. 

Furthermore, Poland, which has still to submit its long-term strategy due on January 2020 
as provided for in Article 15 of Regulation (EU) 2018/1999, was recommended to do so, 
with a view of an assessment of its consistency with the climate neutrality objective. 

From the replies, it is evident that the Member States were updating their national energy 
and climate plans (NECPs) with additional measures to meet the 2030 emission reduction 
targets. Common areas of focus include the transport and waste sectors, aligning national 
targets with EU objectives, and developing legislative acts to enhance climate mitigation 
efforts. While some countries provided detailed plans and progress reports, others 
acknowledged the need for further work but did not provide specifics. A few countries are 
revising or updating their long-term strategies to ensure alignment with climate neutrality 
goals, aiming to reduce emissions across sectors. However, consensus on long-term 
strategies remains a challenge for some, and there is a variation in the level of detail and 
commitment shown in the updates. Overall, the efforts reflect a recognition of the need to 
strengthen policies to achieve climate goals by 2030 and beyond, with a mix of progress 
and ongoing challenges. For further detail, please see Table 9 below. 

Table 9: Overview of country-specific recommendations 

Country 

Recommendation 

Short summary of Member State’s reply 

Step up climate mitigation efforts, by 
making tangible progress on the existing 
and planned policies and consider 
additional, urgent measures to align the 
expected greenhouse gas emission 
reductions and projections with the 
climate-neutrality objective. 
Update and increase the ambition and 
quality on the national long-term 
strategy, including by substantiating 
Austria's emission reductions and 
enhancement of removals targets in 
individual sectors with credible policies 
and measures. 
Submit the draft update of its latest 
notified integrated national energy and 
climate plan as provided for in Article 
14 of Regulation (EU) 2018/1999, with a 
view of an assessment of its 
consistency with the climate-neutrality 
objective. 
Submit the draft update of its latest 
notified integrated national energy and 

Austria 

Bulgaria 

Austria referred to earlier correspondence in which 
it stated that the Austrian government set the 
achievement of net climate neutrality by 2040 and 
listed various measures and initiatives to 
implement this target.  

Austria has been updating the long-term strategy, 
but no consensus was reached yet. Austria has not 
provided any further timeline. 

Austria submitted its updated NECP by December 
2024. 

Bulgaria submitted its NECP in January 2025. 

22 

 
climate plan as provided for in Article 
14 of Regulation (EU) 2018/1999, with a 
view of an assessment of its 
consistency with the climate-neutrality 
objective. 
Update and increase the ambition and 
quality on the national long-term 
strategy, by clarifying Bulgaria's long-
term climate-neutrality goal, and by 
substantiating Bulgaria's emission 
reductions and enhancement of 
removals targets in individual sectors 
with credible policies and measures 

Step up climate mitigation efforts by 
making tangible progress on the existing 
and planned policies and consider 
additional urgent measures to align the 
expected greenhouse gas emission 
reductions and projections with the 
climate-neutrality objective. 

Update and increase the ambition and 
quality of the national long-term 
strategy by clarifying Cyprus' long-term 
climate-neutrality goal and 
substantiating Cyprus' emission 
reductions and enhancement of 
removals targets in individual sectors 
with credible policies and measures 

Step up climate mitigation efforts, by 
making tangible progress on the existing 
and planned policies and consider 
additional, urgent measures to align the 
expected greenhouse gas emission 
reductions and projections with the 
climate-neutrality objective. 
In particular, effort should be directed 
to reverse the recent trend in the 
LULUCF sector 
Update and increase the ambition and 
quality on the national long-term 

Cyprus 

Latvia 

Bulgaria plans to update its long-term strategy 
(LTS); however, it has not provided a concrete 
timeline. 

Cyprus informed that it is ramping up its climate 
efforts to align with the EU's 2050 climate-neutrality 
goal by expanding renewable energy, particularly 
solar and wind, aiming for up to 95% renewable 
sources, and transforming the transport sector 
towards full electrification. Key projects like the 
EuroAsia Interconnector will facilitate a renewable 
shift, while industry, agriculture, and land use 
sectors will implement technologies and practices 
to reduce emissions. Streamlining renewable 
energy permits and boosting financial incentives 
are part of Cyprus's broader strategy to create a 
competitive, low-carbon economy in line with EU 
policies. By 2050 private transportation is expected 
to be fully electrified. 
Cyprus is updating its long-term climate strategy to 
achieve carbon neutrality by 2050, concentrating 
on realistic plans, precise emissions targets, and 
sector-specific decarbonization pathways. Key 
measures include expanding renewable energy, 
implementing carbon capture technologies, fully 
electrifying private transport, and enhancing energy 
efficiency. The strategy's credibility is bolstered 
through improved monitoring, stakeholder 
engagement, and adaptation to new scientific and 
technological developments to ensure a cost-
effective and equitable transition. 

Latvia is strengthening its climate change 
mitigation efforts to meet its 2030 climate goals by 
implementing additional policies and measures 
outlined in its Updated NECP.  

Latvia introduced additional measures like bio-
charcoal application, storage of carbon in wood 
products as a target scenario. 
In 2025, it is planned to update Strategy of Latvia for 
the Achievement of Climate Neutrality by 2050 by 

23 

 
strategy, including by substantiating 
Latvia's emission reductions and 
enhancement of removals targets in 
individual sectors with credible policies 
and measures 

revising mid-term targets, considering the EU fit for 
55 package, developing additional policies and 
measures in individual sectors and taking into 
account EU recommendations 

Belgium 

Update and increase the ambition and 
quality on the national long-term 
strategy, by clarifying Belgium's long-
term climate-neutrality goal, and by 
substantiating Belgium's emission 
reductions and enhancement of 
removals targets in individual sectors 
with credible policies and measures. 

Croatia 

Czechia 

Step up climate mitigation efforts, by 
making tangible progress on the existing 
and planned policies and consider 
additional, urgent measures to align the 
expected greenhouse gas emission 
reductions and projections with the 
climate-neutrality objective. 

Update and increase the ambition and 
quality of the national long-term 
strategy, by clarifying Croatia's long-
term climate-neutrality goal, and by 
substantiating Croatia's emission 
reductions and the enhancement of 
removals targets in individual sectors 
with credible policies and measures. 

Step up climate mitigation efforts, by 
making tangible progress on the existing 
and planned policies and consider 
additional, urgent measures to align the 
expected greenhouse gas emission 
reductions and projections with the 
climate-neutrality objective. In 
particular, effort should be directed 
towards reducing transport emissions 
and increasing removals in the LULUCF 
sector. 

Update and increase the ambition and 
quality of the national long-term 

The strategy, based on regional plans, aims for 
climate neutrality by 2050, with Wallonia targeting a 
95% reduction in emissions from 1990 levels, 
Flanders aiming for an 85% reduction in non-ETS 
sectors from 2005 levels and aiming for climate-
neutrality, and Brussels-Capital moving toward EU 
carbon neutrality goals. Though the federal level 
lacks its own reduction target, it supports regional 
efforts (thus 95-87% by 2050 compared with 2005; 
outside ETS). Political decisions are needed to 
finalise commitments, but Belgium plans to comply 
with governance regulations and will introduce a 
new long-term strategy by 2029, covering a 
minimum of 30 years, with regional strategies being 
reviewed as necessary. 

Croatia adopted additional measures in 
cooperation with relevant sectors. 

Croatian Low-carbon Development Strategy 
outlines a climate neutrality scenario up to 2050, 
with plans to update the strategy to include this 
long-term goal. The National Development Strategy 
aims for Croatia to lead in transforming climate 
challenges into opportunities by 2030, ensuring a 
fair transition. The new Act on Climate Change sets 
the national goal of climate neutrality by 2050, with 
sector-specific responsibilities determined from 
greenhouse gas emissions analysis. 
Czechia is advancing towards its energy and 
climate goals, with a significant 15% reduction in 
GHG emissions from 2022 to 2023, and even 
improvements in the LULUCF sector. Rapid 
decarbonisation in the energy sector is supported 
by the Modernisation Fund, aiming to phase out 
coal by 2033. Updated NECP projections suggest 
nearing climate neutrality by 2050 with additional 
measures. Recent policy developments include an 
updated Methane Strategy, a National Action Plan 
for Clean Mobility in 2024, and a CCUS Action Plan 
in 2025. A Forest Act amendment is underway to 
introduce payments for carbon sequestration. 
So far, no consensus was reached on the adoption 
of an explicit target of climate neutrality. 

24 

 
strategy, by clarifying Czechia's long-
term climate neutrality goal, and 
substantiating Czechia's emission 
reductions and enhancement of 
removals targets in individual sectors 
with credible policies and measures. 

Step up climate mitigation efforts, by 
making tangible progress on the existing 
and planned policies and consider 
additional, urgent measures to align the 
expected greenhouse gas emission 
reductions and projections with the 
climate-neutrality objective. 

Ireland 

In particular, effort should be directed 
towards reducing emissions in 
agriculture and enhancing removals in 
the LULUCF sector. 

Italy 

Step up climate mitigation efforts by 
making tangible progress on the existing 
and planned policies and consider 
additional, urgent measures to align the 
expected greenhouse gas emission 
reductions and projections with the 
climate-neutrality objective. In 
particular, effort should be directed 
towards decarbonising energy 
production. 

Ireland commits to achieve climate neutrality by 
2050, as aligned with EU goals and stipulated in its 
Climate Act, which also mandates a 51% reduction 
in greenhouse gas emissions by 2030 compared to 
2018 levels. Recent policies include a national 
retrofitting programme and advancements in 
renewable energy and public transport, 
contributing to a year-on-year decrease in 
emissions over the past three years. Irish 
governance framework involves carbon budgeting 
and annual Climate Action Plans, aimed at 
maintaining progress towards these goals. An 
updated Climate Action Plan for 2025 and new 
carbon budgets are expected soon to further 
accelerate emissions reductions. 
NECP was submitted in July 2024 for period of 2021 
to 2030. 
The long-term strategy was sent to the Commission 
in July 2024. 
Agriculture is the largest contributor to emissions in 
Ireland, prompting a focus on reducing its impact 
as part of the Climate Act 2021. The Climate Action 
Plan 2024 and NECP outline strategies for 
emissions cuts in agriculture, including improved 
bovine genetics, sustainable fertilisers, and land 
use diversification. Key actions include expanding 
organic and tillage sectors and producing 
biomethane. Additional developments include 
grants for low-emission farming practices and a 
new National Organic Strategy. In the LULUCF 
sector, measures focus on increasing forest cover 
and rehabilitating peatlands to enhance carbon 
sequestration, with continued efforts to adopt new 
practices and respond to environmental 
disruptions like recent storms 

The final updated NECP sets   targets for renewable 
energy, and several national policies are already 
driving a profound decarbonisation of the energy 
industry. The sector is already undergoing a 
transformation, from permitting regulations to 
incentives for renewable energy generation. 

25 

 
Update and increase the ambition and 
quality of the national long-term 
strategy, including by substantiating 
Italy's emission reductions and 
enhancement of removals targets in 
individual sectors with credible policies 
and measures. 

Step up climate mitigation efforts, by 
making tangible progress on the existing 
and planned policies and consider 
additional, urgent measures to align the 
expected greenhouse gas emission 
reductions and projections with the 
climate-neutrality objective. In 
particular, effort should be directed to 
reverse the recent trend in the LULUCF 
sector. 

Update and increase the ambition and 
quality of the national long-term 
strategy, by substantiating Estonia's 
emission reductions and enhancement 
of removals targets in individual sectors 
with credible policies and measures 
Step up climate mitigation efforts, by 
making tangible progress on the existing 
and planned policies and consider 
additional, urgent measures to align the 
expected greenhouse gas emission 
reductions and projections with the 
climate-neutrality objective. Submit the 
draft update of its latest notified 
integrated national energy and climate 
plan as provided for in Article 14 of 
Regulation (EU) 2018/1999, with a view 
of an assessment of its consistency 
with the climate-neutrality objective. 

In particular, effort should be directed 
towards reducing transport emissions 
and enhancing removals in the LULUCF 
sector. 

Italy does not expect to update its long-term 
strategy. Italy’s Long-Term Strategy was submitted 
in January 2021 and was already aligned with the 
2050 climate neutrality objective. In particular, 
emissions removals, which play an important role 
in the strategy, are deemed to be on track to meet 
the EU-level target.  
In September 2023, Estonia proposed the Climate 
Resilient Economy Act, aiming to integrate climate-
friendly practices across all sectors and enhance 
Estonia's competitive edge. The Act will set cross-
sectoral and sector-specific targets to achieve 
climate neutrality by 2050, covering energy, 
industry, buildings, transport, agriculture, waste, 
and land use. These targets align with the EU's 2030 
and 2050 climate goals and consider emission 
reduction obligations under the Effort Sharing 
Regulation and LULUCF sectors, as well as the EU 
ETS. While still under development, the Act seeks 
to promote legal clarity and investment certainty. 
Act has not yet been approved by the government 
or the parliament 

Same reply as above.  

Poland’s final NECP, incorporating these 
recommendations and focusing on accelerating 
emission reductions through a "With Additional 
Measures" (WAM) scenario, is in progress. The 
WAM scenario projects a 50.4% reduction in CO2 
emissions by 2030. Emissions from the non-ETS 
sector will be reduced by 18,2% thus overdelivering 
on the EU reduction target of 17,1%. The transition 
is expected to lower energy costs, reduce energy 
poverty, and spur economic growth (GDP growth of 
+4,13% average year-on-year between 2025 and 
2030). The final NECP will be submitted after public 
consultations starting in October. 
To reduce transport emissions, Poland emphasised 
energy efficiency and electrification, particularly in 
road and rail, and adopting low-carbon fuels for 
shipping and aviation. Efforts focus on promoting 
public transport and sustainable urban mobility, 
such as replacing combustion engine buses with 
zero-emission vehicles. In the LULUCF sector, 
Poland aims to increase forest cover to 33% by 
2050 and is planning to modify forest management 
in 20 % of the forests by creating so called Social 
Forests. Agricultural measures under the common 

26 

Estonia 

Poland 

 
agricultural policy strategic plan aim to increase 
soil carbon stock and sequester carbon through 
practices like afforestation and agroforestry. These 
initiatives are expected to yield results over the 
coming years, aligning with LULUCF Regulation 
goals. 
Poland intends to submit its final long-term strategy 
by the end of 2024 as pledged in March 2024. The 
Ministry of Climate and Environment is developing 
the first draft, incorporating analyses from the 
updated National Energy and Climate Plan. 
Completion is expected by October, followed by 
interministerial and public consultations in 
November, before government adoption and 
submission to the European Commission. 
The updated NECP for Malta details various policies 
aimed at reducing emissions across key sectors, 
though meeting 2030 targets remains challenging, 
especially in transport and waste. The government 
plans further measures to promote low-carbon 
transition, focusing on transport through a national 
strategy to reduce private vehicle use and enhance 
public transport and cycling infrastructure. In the 
waste sector, efforts include a landfill gas capture 
program and improved fluorinated gas 
management. Malta is also exploring renewable 
energy integration across sectors to close the gap 
to 2030 targets, maintain competitiveness, and 
ensure a sustainable transition to a climate-neutral 
economy. 

Malta is actively aligning its energy and climate 
policies with the EU's goal of achieving climate 
neutrality by 2050, as outlined in its Low Carbon 
Development Strategy. The country is committed to 
periodically reviewing and updating its long-term 
strategy to support this collective EU objective. 

Submit Poland's national long-term 
strategy as provided for in Article 15 of 
Regulation (EU) 2018/1999, with a view 
of an assessment of its consistency 
with the climate-neutrality objective. 

Step up climate mitigation efforts by 
making tangible progress on the existing 
and planned policies and consider 
additional urgent measures to align the 
expected greenhouse gas emission 
reductions and projections with the 
climate-neutrality objective. In 
particular, efforts should be directed 
towards reducing emissions in the 
transport and waste sectors. 

Malta 

Update and increase the ambition and 
quality of the national long-term 
strategy by clarifying how and by when 
Malta will become climate neutral, and 
by substantiating Malta's emission 
reductions and enhancement of 
removals targets in individual sectors 
with credible policies and measures. 

In 2025, through National Energy and Climate Reports (NECPR), Member States have 
also reported on progress towards national objectives, targets and contributions. Almost 
all Member States, except Belgium, Croatia, Czechia, Poland and Sweden, defined the 
objective to achieve climate neutrality by 2050 or earlier. Bulgaria, Cyprus, Malta, the 
Netherlands, and Romania have formally indicated, for the first time in a reporting 
document, a target year to achieve climate neutrality. Romania, in particular, set an early 
target of 2045. In addition, in July 2025 Slovenia adopted a Climate Act, which sets a 
binding target of reaching climate neutrality by 2045. Member States have also updated 
their quantitative national GHG targets up to 2050, slightly increasing the overall climate 

27 

 
ambition compared with the 2023 NECPR (see the staff working document assessing the 
2025 NECP progress reports). 

The Commission has continued to monitor progress towards climate neutrality also 
through the climate-neutrality dashboard, a set of indicators used to examine historical 
developments and expected outcomes along multiple dimensions (Table 10). These 
include climate levers to track specific drivers behind decarbonisation in key sectors. The 
aim is to maintain continuity in tracking progress towards achieving our common net-zero 
emissions objective, particularly in this decisive decade for climate action. Overall, the 
climate-neutrality dashboard shows that, compared with the 2024 edition, approximately 
two thirds of the indicators have improved, while one third have deteriorated. The most 
notable advances are in the intensity indicators for final energy consumption and the share 
of gross final consumption of energy from renewable sources. Among the climate levers, 
sustainable mobility (measured by the average CO2 emissions of new cars sold) improved 
in all Member States, while waste prevention and meat consumption show a weaker 
improvement. 

28 

 
Table 10: 2025 Climate-neutrality dashboard 

Notes: (1) Historical GHG emissions and removals (1990-2024) are based on EEA’s 2025 GHG Inventory and Approximated emissions and removals. Emissions from international aviation and maritime transport activities are not included. 
The 2015-2024 % change for Sweden is based on 2024 emissions, being in 2015 close to zero. (2) GHG intensity of GDP (gCO2-eq/EUR2015) and GHG per capita (tCO2-eq) use net GHG emissions (i.e. including LULUCF and excluding 
international aviation). Real GDP and population data from Eurostat. (3) GHG emission projections submitted in 2025 by Member States under Art. 18 of the Governance Regulation considering additional measures (WAM). EU Population in 
2050 is based on the latest Eurostat population projections. Agriculture and forest land are based on the Eurostat land use statistics. (4) The overshoot vs. a linear trajectory compares, for each Member State, the cumulative projected net 
GHG emissions (including LULUCF) between 2024 and 2050 with a linear trajectory starting from the 2024 emission level to zero by 2050. The overshoot against an indicative benchmark compares the cumulative projected GHG emissions 
(excluding LULUCF) with an indicative pathway to climate neutrality based on the scenarios proposed by the European Scientific Advisory Board on Climate Change and then distributed across Member States according to the country’s share 
of EU emissions in the core policy scenario supporting the initiatives delivering the European Green Deal. Target dates to achieve climate neutrality as for the national long-term strategies, the NECP progress reports or, in grey, from other 
unofficial sources (Net Zero Tracker). 

29 

2024-19902024-20232024-20192024-2015GHG intensity of GDP (2024)FEC per unit of GDP(2023)GHG emissions per capita(2024)FEC in households per capita(2023)MS projected net GHG by 2030(tonnes of CO2 eq. per capita)ESR target vs MS projections(to 2005 level, ppt)LULUCF target vs MS projections(tCO2eq/Km2 of land)Share of gross final consumption of energy from renewable sourcesZero-Emission Energy(share of RES and nuclear in gross electricityGreening Industry(share of RES and electricity in FEC in manufacturing and construction)Sustainable mobility(average CO2 emissions of new cars sold)Energy efficient buildings(FEC in buildings, gOE per m2*climatic correction)Waste prevention(municipal waste generation per capita, kg)Climate investment(climate change mitigation purposes, as share of GDP)Sustainable consumption(bovine meet consumption per capita, kg)MS projected net GHG by 2050(tonnes of CO2 eq. per capita)Overshoot vs. linear trajectory net GHG emissions 2024-2050Overshoot vs. BenchmarkTotal GHG emissions 2024-2050Target year for climate neutrality (NECPR, nLTS or other sources)Legal Status of long term target(based on https://zerotracker.net/)Austria13%-2%-14%-1%197638.17215.6-8-2641%70%49%124117650.7%152.519%25%2040In lawBelgium-31%1%-15%-16%206668.35916.8-4-415%65%38%117146560.7%133.164%26%2050In policy documentBulgaria-57%-4%-21%-33%6041685.53172.726-223%50%39%14294640.5%4-0.2-32%-5%2050Declaration / pledgeCroatia-25%-5%-1%-1%3071204.85774.05-4728%58%32%132154600.7%130.79%37%2050In policy documentCyprus58%5%6%7%307698.83515.7-6020%15%39%143106570.1%113.018%35%2050In policy documentCzechia-50%-6%-27%-21%4601148.55915.0106719%39%40%143175380.5%111.2-19%-8%2030In policy documentDenmark-54%-5%-23%-27%112426.16983.7115144%73%44%101118071.4%241.6-3%-10%2050Declaration / pledgeEstonia-64%-3%-29%-33%5061059.16838.5-6-13141%51%57%14593790.8%95.067%49%2050Declaration / pledgeFinland6%-1%-7%20%230979.39827.3-5-12351%72%71%10175590.7%184.246%8%2035In lawFrance-37%-2%-17%-21%135544.85313.6-1-2122%86%44%114175440.9%222.648%37%2050In lawGermany-46%-5%-20%-23%211568.46355.8-13-21722%46%40%125136220.5%152.38%4%2045In lawGreece-36%-4%-20%-30%321796.23634.0213725%40%48%124115130.2%140.3-11%8%2050In lawHungary-47%-1%-19%-15%3381185.05604.48017%52%44%138194101.2%61.139%27%2050In lawIreland-5%-2%-10%-10%1252710.74799.3-20-3615%40%35%115276290.1%166.474%47%2050In lawItaly-38%-4%-14%-20%175605.44684.1-33620%37%42%127154930.3%162.336%48%2050In policy documentLatvia-6%-13%42%15%4471366.85727.41-9943%62%70%142144611.3%67.375%10%2050In policy documentLithuania-68%11%-4%14%2811104.85332.805232%61%44%142144681.5%63.232%40%2050In policy documentLuxembourg-45%-1%-32%-29%1105510.36867.061214%56%47%130237610.2%300.80%-2%2050In lawMalta-17%-3%2%1%123433.82063.0-49-915%12%74%110316350.4%202.270%49%2050In policy documentNetherlands-36%-1%-21%-27%175508.14316.4-1-1117%33%25%96174990.3%163.447%23%2050In lawPoland-33%-5%-18%-14%5051218.05425.911517%16%40%142163570.6%12.919%28%2030In policy documentPortugal-19%1%-15%-21%237814.82853.0117135%55%56%110145080.4%210.9-8%20%2050In lawRomania-70%19%0%0%3191093.63962.0311126%51%32%130192940.7%5-0.6-27%25%2045In policy documentSlovakia-57%-1%-19%-21%289965.14474.24-2517%68%39%142164690.5%61.936%32%2050In lawSlovenia-22%7%-11%-35%225915.34905.3111125%64%47%135165010.5%140.035%6%2045In lawSpain-13%0%-15%-22%170654.52873.08725%64%43%130104730.3%131.522%36%2050In lawSweden37%23%56%87%31591.56690.4-5-6366%91%80%9594171.2%220.312%30%2045In lawEU27-39%-3%-17%-19%200646.35114.5-2-2525%57%44%122125170.6%142.123%24%2050In lawClimate-neutrality objectives and projections(5)Historic data(1)GHG emission projections, levers, and future challenges(4)Total net GHG emissions (% change)GHG intensity and GDP per capita (3)2030 objectives and projectionsClimate-neutrality levers 
 
3.4 Additional greenhouse gases indicators 

The GHG emission intensity of the economy, defined as the ratio between EU GHG net 
domestic emissions (i.e. including LULUCF net removals and excluding international 
maritime and aviation transport) and GDP, fell to 200 gCO2eq/EUR in 2024, almost 60% 
below its value in 1995. (Figure 9.a). The steady decline in the GHG emission intensity was 
accompanied by a convergence among Member States. The similar pattern is shown by the 
GHG emissions per capita, reaching in 2024 a record low of 6.3 tCO2-eq, although with a 
more gradual convergence among Member States (Figure 9.b) compared to the emission 
intensity of GDP. 

Figure 9: (a) Average GHG emission intensity of GDP and (b) GHG emissions per capita (1995-2024)  

(a) 

(b) 

Notes: EU GHG net emissions based on 2025 EU GHG inventory (EEA) and approximated EU GHG inventory for 2024 
(EEA), Eurostat for the population [nama_10_pe] and GDP at constant price (2015, [nama_10_gdp]). Shaded areas 
represent the standard deviation across the Member States. The GHG intensity in this report differs from the ones of the 
Air Emissions Accounts (AEA). The source of data used for the emissions is the GHG inventories, which are based on the 
‘territory principle’ (i.e. emissions are assigned to the country where the emission takes place), whereas the emissions 
from the AEA follows the ‘resident principle’ (i.e. being the final result of the production activity of resident producer 
units), which is also used in national accounts (for the GDP). It has been preferred here to use GHG inventories to keep 
the same source of data for emissions throughout the report (in addition emissions from the AEA do not include the 
emissions from the LULUCF sector). 

Since 2005, in all Member States except Latvia 25 GHG intensity of GDP clearly declined. 
The same is true for net GHG emissions per capita albeit at a slower pace (see Figure 10). 
Countries with higher emission intensity of GDP ratios in 2005 (e.g. Bulgaria, Poland, 
Czechia, Romania, Estonia, and Slovakia) experienced the most significant reductions, 
leading to a convergence towards the EU average. A similar pattern is observed for the 
emissions per capita rates, with a sizable group of countries with emissions above 10 
tonnes of CO2 equivalent per capita in 2005, moving closer to the EU average of 6 tCO2-eq 
in 2023. Nonetheless, in 2023, Poland and Czechia ranked among the top five for the two 

25 Due to a declining LULUCF sink. 

30 

 
 
 
 
indicators, while Bulgaria showed the highest GHG intensity of GDP (at around 600 
grammes of CO2 equivalent per euro of GDP), and Ireland was the highest per capita 
emitter among the EU Member States (above 10 tonnes per capita). 

Figure 10: Greenhouse gas emissions intensity (i.e. the ratio between GHG emissions and GDP, gCO2-eq./ EUR2015) 
and greenhouse gas emissions per capita in the EU and its Member States in 2005 and changes to 2024 

(a) GHG intensity of GDP 

(b) GHG per capita 

Note: Figures use net GHG emissions, including LULUCF and excluding international transport emissions. 
Source: EU GHG net emissions based on 2025 EU GHG inventory (EEA) and approximated EU GHG inventory for 2024 
(EEA), Eurostat for the population [nama_10_pe] and GDP at constant price (2015), [nama_10_gdp]. 

Already in 2023, domestic transport surpassed energy supply as the largest contributor to 
total EU GHG emissions. Preliminary data for 2024 indicate a strengthening of this trend 
with domestic transport now accounting for 23% of all GHG emissions (against 21% for the 
energy sector). Adding emissions from international aviation and maritime, bring the 
emissions from transport activities above a third of total EU emissions 26. Transport and 
energy sector are closely followed by the industry sector (19%) when the energy use in 
manufacturing industries (11%) and emissions from industrial process and use (8%) are 
taken together (see Figure 11.b). 

26 Emissions from international aviation and navigation as reported by Member States according to the UNFCCC GHG 
inventory (i.e. bunker approach). However, only around 50% of those emissions are currently estimated to be covered by 
the EU target (see Chapter 2). 

31 

 
 
 
 
 
 
Figure 11: EU-27 greenhouse gas emissions by sector (1990-2024) and in % of total emissions (2024) 

(a) 

(b) 

Notes: The sectors used correspond to the following IPCC sectors: Energy: 1.A.1, 1.A.5, 1.B and 1.C; Energy use in 
manufacturing industries: 1.A.2: Industrial processes and product use: 2; Transport includes both domestic (1.A.3) 
and international (1.D.1, bunker approach); Buildings: 1.A.4, Agriculture: 3, Waste: 5. The sub-sectoral distribution 
within the Energy, Domestic Transport, Buildings and Agriculture sectors is based on the 2023 shares. 

Figure 12: EU Member States greenhouse gas emissions by sector 2024 (a) and LULUCF net removals (b), in % of 
total emissions 

(a) 

(b) 

Notes: Industry includes both the energy use in manufacturing industries (CFR 1.A.2) and Industrial processes and 
product use (CFR 2). The buildings sector includes emissions from residential and non-residential heating (CFR 1.A.4.a 
and 1.A.4.b). It also includes emissions of other sectors (1.A.4.c), like agriculture, but only for their combustion of fuels 
(tractors, pump fuel use). 

Among all the EU Member States, in 2024, GHG emissions from the energy sector were 
highest in Estonia (45% as a percentage of total GHG emissions), followed closely by 
Bulgaria (43%) and Poland (42%) (Figure 12.a). Emissions from industry were relatively high 
in Austria (37%) and Slovakia (36%). The transport sector’s contribution to GHG emissions 

32 

 
 
 
 
 
stood out in Luxembourg (53%), due to purchase of fuels from non-residents in transit. The 
share of emissions from buildings is very low in many Member States. For many of them 
(Baltic, Scandinavian Member States and some Eastern Member States), this is because 
the heating of buildings is done via district heating, for which the related emissions are 
registered under the energy sector (1.A.1.a. Public electricity and heat production). Ireland 
and Denmark had the highest shares of GHG emissions from agriculture among all 
Member States (36% and 30%, respectively), followed by Lithuania (22%) and Latvia (20%). 
For Sweden, and with some distance also for Romania, the LULUCF sink was significant in 
relation to the countries’ respective GHG emissions, while for Finland, Latvia and Estonia 
the LULUCF sector became, in recent years, among the most important source of 
emissions. 

Table 11: Total GHG emission per Member States (MtCO2-eq) 

Note: The last two lines refer to the EU GHG emission aggregate which better reflects the exact legal scope as provided by 
the European Climate Law. For more details, see Chapter 2. 

33 

19902005201520242024-199019902005201520242024-199019902005201520242024-1990Belgium14614511999-32%14314311899-31%159172141126-21%Bulgaria99626044-56%82475335-57%83485435-57%Czechia19614812698-50%18713811893-50%18713911994-50%Denmark72695137-49%79745137-54%84795643-49%Germany1252990902649-48%12881011908700-46%13081042939731-44%Estonia40191810-74%35171913-64%36172013-64%Ireland56706054-4%61766458-5%62796761-1%Greece1041379669-33%1021339365-36%11314510176-32%Spain287436332269-6%250389280219-13%2674273192660%France547555460369-32%524500420332-37%540524443353-35%Croatia32302524-23%25221919-25%26221920-24%Italy523596443372-29%519562402320-38%528578416336-36%Cyprus698959%598958%611101062%Latvia26111110-63%1441113-6%1551213-14%Lithuania48222018-62%43171214-68%44181314-67%Luxembourg1313108-40%1312107-45%1314119-33%Hungary95776254-43%92715748-47%92725749-46%Malta3322-17%3322-17%4579154%Netherlands223215195143-36%228220200146-36%267282250192-28%Austria80937967-16%6678757413%6780777716%Poland476401383332-30%443348348299-33%445350351303-32%Portugal59866851-14%63906551-19%66947059-12%Romania257150117117-55%2301196869-70%2311206969-70%Slovenia19211715-18%14131711-22%15141811-22%Slovakia74504033-55%65463528-57%65463528-57%Finland72705539-46%494644526%524947556%Sweden71665347-33%128-21637%161762451%EU-274873454638133039-38%4635419934952827-39%4791444937293079-36%         EU-27 Net GHG emissions (EU target scope)4726433736222970-37%         EU-27 Net GHG emissions (EU NDC scope)4689427935752923-38%Total GHG emissions, excl. LULUCF, excl. international transportTotal net GHG emissions, incl. LULUCF, excl. international transportTotal net GHG emissions, incl. LULUCF, incl. international transport 
 
 
 
4  EU’s greenhouse gas emissions by sectors 

This chapter provides detailed information on greenhouse gas (GHG) emissions 
developments in the main sectors of the economy. It includes sub-sectoral analysis with 
the aim of better understanding the main drivers of past trends, and the challenges and the 
opportunities for further reducing emissions and greening the sectors. In addition, the 
chapter presents a decomposition analysis by sector, using a standard technique 27. The 
land use, land use change and forest (LULUCF) sector is not analysed in this chapter, being 
already investigated in Chapter 4 of the Climate Action Progress Report. 

Emission reductions since 1990 were significant in the energy supply sector 28 (-53%, or -26 
MtCO2-eq per year on average) and in industry, including both fuel combustion in 
manufacturing and emissions from industrial processes and product use (-46% or -16 
MtCO2-eq/y-avg). Emissions also fell in buildings (-38% or -8 MtCO2-eq/y-avg). In the same 
period, emissions in the transport sector increased (+18%, or 4 MtCO2-eq/y-avg), although 
they have been slightly decreasing in the last five years. Emissions reduction in the 
agriculture sector has visibly slowed in recent years. Emissions in the waste sector have 
shown a similar trend (see Figure 13). 

Figure 13: Past and expected emission reductions by sectors  

27 Decomposition analysis is a mathematical method used in economics to quantify the impact of drivers to a change in 
value in a rigorous way. The method ensures that the sum of the drivers is equal to the total change of the GHG 
emissions. This work uses the Logarithmic Mean Divisia Index (LMDI) in the formulation of the drivers. 
28 It includes power electricity and heat production (CFR 1.A.1.a), petroleum refining (CFR 1.A.1.b), other energy 
emissions (CFR 1.A.5), fugitive emissions (CFR 1.B) and indirect CO2 emissions.  

34 

 
 
 
Note: Based on 2025 GHG inventories and 2025 GHG projections submitted by Member States. Expected emission 
reductions at sectoral level are based on the modelling outcomes of the core policy scenario supporting the Fit-for-55 
initiatives and on the impact assessment analysis accompanying the 2040 target Communication. The grey squares 
for 2040 show the range of expected emissions under the S1 and S3 scenarios. 

Although the EU climate framework does not have sector-specific targets, the model-
based results from the Commission’s impact assessments 29 provide an indication of what 
modelling to inform intermediate targets to 2050 shows in terms of expected sectoral 
emissions in 2030 (for the agreed target) and 2040 (for the range of scenarios considered). 
Compared with the progress achieved in the past five years, in the years up to 2030, the 
annual rate of emission reductions must significantly accelerate in the transport and 
buildings sectors. Member States’projections are also falling short of the expected 
contribution for buildings, and, for transport and industry when only existing measures are 
considered. For agriculture (excluding the impacts of LULUCF), projected emissions 
reductions are less to 2040, though efforts are still required now to address the fact that 
emissions reductions have slowed in recent years. Climate neutrality in 2050 also requires 
all sectors to contribute. 

As we approach 2030, attention must focus on emission trends and forecasts in different 
sectors. Efforts should increasingly be directed to the ‘harder-to-abate’ sectors to fully 
reap the benefits of the green transition. 

4.1 Energy supply emissions 

The energy industries, especially the power sector, play a crucial role in the transition to 
climate neutrality, not only because they are among the largest sources of greenhouse gas 
emissions, but because the transition relies heavily on the electrification across all 
sectors, making it essential to reduce dependence on gas and oil in electricity production. 

In the EU, the energy sector is largely regulated under the EU Emissions Trading System 
(EU ETS), which has been instrumental in driving significant emission reductions – over 
50% since 1990 – by putting a price on carbon and incentivising cleaner energy production. 
Careful attention to this sector is vital, as its transformation affects the entire economy 
and energy security. 

Emissions from the energy sector are reported under three main categories in the 
greenhouse gas inventories: 

•  Public Electricity and Heat Production (1.A.1.a), 
•  Petroleum Refining (1.A.1.b), 
•  Manufacture of Solid Fuels and Other Energy Industries (1.A.1.c) 

29 Supporting the delivering the European Green Deal, as further refined in the Commission’s impact assessment for the 
2040 target proposal. 

35 

 
 
In order to facilitate comparison across countries and forecasted emissions, in this 
analysis the sector also includes Fugitive Emissions from Fuels 30 (1.B), Other Sectors 
(1.A.5), and indirect CO2 emissions 31. 

Historical developments, trends and projections 

In the EU, the energy supply sector presents the largest decrease in GHG emissions since 
1990 (54%), which have nearly halved compared to 2005 levels, with a significant drop in 
2023 (18%). While the sector accounted for more than a third of total GHG emissions, its 
share fell to below 25% in 2023, surpassed by the transport as the largest source of 
emissions in the EU. 

Figure 14: Emissions in the Energy supply sector (1990-2023) and projections (2024-2050) 

Note: Based on 2025 GHG inventories and 2025 GHG projections submitted by Member States. The estimated 
contribution to the EU 2030 EU target is based on the modelling outcomes of the core policy scenario supporting the Fit-
for-55 initiatives. 

Emissions fell significantly in all subsectors (i.e. largely above 50%), except for petroleum 
refining (falling by 13%). Emissions from electricity and heat production have decreased by 
53%, over the past 33 years since 1990. The fall was driven by a significant decline in coal 
usage and growth in the use of renewable energy sources. In addition to improved energy 

30 The unintentional release of gases or vapours, primarily greenhouse gases, from industrial processes, equipment, or 
infrastructure involved in the extraction, production, processing, storage, transportation, and distribution of fossil fuels. 
31 Emissions that occur at sources owned or controlled by another entity but are a consequence of the reporting entity's 
activities. These typically include emissions from the generation of purchased electricity, heating, and cooling consumed 
by the reporting entity. 

36 

 
 
 
efficiency, there has been a move towards less carbon intensive fuels 32. Coal 
consumption in 2023 was almost three times lower than in 1990. The use of renewable 
energy sources in electricity and heat generation has increased substantially in the EU 
since 1990. Improved energy efficiency and a less carbon intensive fuel mix have resulted 
in reduced CO2 emissions per unit of fossil energy generated 33. 

Based on the latest GHG projections – submitted by Member States and aggregated at EU 
level – emissions from the energy supply sector will align to the expected emissions from 
the model-based results supporting the delivery of the European Green Deal. 

As illustrated in Figure 15, emissions from the energy supply sector declined in all Member 
States, although to different degrees. Luxembourg, Portugal, Denmark, Spain and Greece 
were able to cut more than two thirds of their emissions since 2005, while Cyprus has seen 
only a minimal reduction (12%). Among the countries starting with the highest share of 
energy emissions in total GHG emissions (i.e. higher than 40% in 2005), Poland and 
Bulgaria achieved the lowest reduction (28% and 39%, respectively). 

Figure 15: Change in energy supply sector emissions by Member State (2005-2023, %) 

Main drivers 

Due to data availability, this section focuses on the period 1995-2023. The emissions of the 
energy sector decreased by 46% between 1995 and 2023. If emissions followed population 
and GDP growth, we could have expected a 43% increase in GHG emissions. However, 
a reduced energy intensity per GDP and efficiency gains in fossil fuel combustion 
counterbalanced that increase. This likely reflects changes in the structure of the economy 
and technical improvements in emission control and combustion processes. Contribution 

32 Between 1990 and 2023, the use of solid and liquid fuels in thermal power stations decreased strongly (by 64 % and 85 
%, respectively) whereas natural gas consumption developed in the opposite direction (increasing by 48 %). 
33 EU’s energy sector leads the way in cuts to greenhouse gas emissions in 2023 | European Environment Agency's home 
page 

37 

 
 
 
to emission reductions also came from the energy transformation efficiency and lower 
fossil fuel share (and higher share of renewable energy) in the energy mix. 

Figure 16: Decomposition of emission in energy consumption (1995-2023)  

Decomposition factors: 

𝐺𝐻𝐺𝐸 = 𝑃𝑂𝑃 ∗

𝐺𝐷𝑃
𝑃𝑂𝑃

∗

∗

𝐹𝐸𝐶
𝐺𝐷𝑃
𝐹𝐹𝐶
𝑃𝐸𝐶

∗

∗

𝑃𝐸𝐶
𝐹𝐸𝐶
𝐺𝐻𝐺𝐸
𝐹𝐹𝐶

POP – Population 
GDP/POP – Income (GDP per 
capita) 
FEC/GDP – Final energy use per 
unit of GDP 
PEC/FEC – Transformation 
efficiency 
FFC/PEC – Fossil fuel share in 
energy 
GHG_E/FFC – Emission intensity 
of fossil fuel combustion 

POP – Population 
GDP – Gross Domestic Product 
FEC – Final Energy Consumption 
PEC – Primary Energy Consumption 
FFC – Fossil Fuel Consumption 
GHG_E – GHG emissions related to the energy supply 

The shift towards renewable energy sources and their replacement of fossil fuels in the 
production of energy, becomes particularly evident when examining emissions from 
electricity and heat generation (Figure 17). In this sub-sector, GHG emissions have nearly 
halved since 1995. 

In addition to a significant reduction in energy intensity relative to GDP, the increased 
deployment of renewables in electricity and heat generation has accounted for nearly 40% 
of the emissions reduction. Improvements in efficiency and a transition to lower-carbon 
fuel sources contributed a further 22%. These positive effects have more than 
compensated for the rise in electricity’s share of total energy demand (the electrification 
rate effect). 

38 

                                                          
 
 
 
 
 
 
 
 
Figure 17: Decomposition of emission in electricity and heat production (1995-2023)  

Decomposition factors: 

𝐺𝐻𝐺𝐸𝐿 = 𝐺𝐷𝑃 ∗

∗

𝐹𝐸
𝐺𝐸𝐻𝑃

𝐹𝐸𝐶
𝐺𝐷𝑃

𝐺𝐸𝐻𝑃
∗
𝐹𝐸𝐶
𝐺𝐻𝐺𝐸𝐿
𝐹𝐸

∗

GDP – Economic growth 
FEC/GDP – Energy intensity of GDP 
GEHP/FEC – Electrification effect 
FFE/GEHP – Fossil fuel energy in the 
production of electricity and heat 
GHG_EL/FFE – Emission intensity of 
fossil fuel energy 

GDP – Gross Domestic Product 
FEC – Final Energy Consumption 
GEHP – Gross electricity and heat production 
FFE – Fossil Fuel in electricity and heat production 
GHG_EL – GHG emissions related to the electricity and 
heat production 

Policies and measures 

Effective climate policies are essential for reducing emissions in the energy supply sector, 
particularly in electricity and heat production and oil refineries, which are among the 
largest sources of greenhouse gases in the EU. Through instruments like the EU ETS, 
emissions from these sectors are capped and progressively reduced, creating market 
signals that encourage cleaner technologies. Complementary policies under the European 
Green Deal and the Fit-for-55 package further accelerate the transition by promoting 
energy efficiency, renewable integration, and decarbonization of industrial processes. 
National measures, including carbon pricing, fossil fuel subsidy reform, and targeted 
support for innovation, play a crucial role in aligning sectoral transformation with the EU’s 
climate neutrality goals. 

Every two years, EU Member States report on national policies and measures under the 
Governance Regulation. In 2025, they reported over one thousand policies and measures 
targeting energy supply (around a third of all single policies and measures), of which a 
fourth still to be implemented. 

39 

 
 
 
 
 
 
Figure 18: a) Number of single policies and measures the EU Member States reported as affecting energy sector 
emissions; by status of implementation (b) and by main objective. 

(a) 

(b) 

Notes: data on policies and measures are based on a preliminary dataset of 2025 NECP progress reports (Annex IX). 
Due to a delay in the submission, data for Belgium refer to the 2023 NECP progress reports. Member States can 
indicate more than one objective for the same policy and measure. In brackets, the EU PaM’s totals. Order of country 
is aligned to the share of policies and measures with an increase in renewable in the energy sector. 

Most of these policies and measures aim to increase renewable energy sources in the 
electricity (27%) or in the heating and cooling (13%) sectors (e.g. feed-in tariff, financial 
support, installation grants, etc). Another 16% aim to improve the resilience of energy 
supply infrastructure, including ensuring energy supply in case of major disruptions to the 
network, or increasing the ability of the power network to absorb increased share of 
renewable generation. Several policies (12%) support the switch to less carbon-intensive 
fuels.  Fewer policies and measures are directed to improve the efficiency in 
transformation (10%), including better control of fugitive emissions. 

Data on policy impact on emission reductions by 2030 was available for only 8% of policies 
and measures targeting energy supply emissions. This highlights a major gap in how 
Member States evaluate the effectiveness of their climate policies. As a result, Table 12 
presents only an illustrative list of measures with reported impacts. Policies lacking impact 
data cannot be meaningfully assessed. 

40 

 
 
 
Table 12: Illustrative list of polices and measures affecting energy supply emissions 

Country 

Name of policy 
or measure 

Description 

Start 
year 

Type of 
instrument 

Related EU 
policy 

Ireland 

Renewables 
Electricity 
Generation 

It aims for 70% of Ireland's 
electricity to come from 
renewable sources by 2030 

2005 

Economic; 
Regulatory 

Emissions 
reductions 
in 2030 
(KtCO2eq) 

% of total 
energy 
emissions 
in 2005 

6 640 

42% 

9 493 

16.2% 

2 950 

10.8% 

1 000 

6.2% 

Renewable 
Energy 
Directive 
Electricity 
Market 
Directive; 
Renewable 
Energy 
Directive; 
ETS 
Directive 
CCS 
Directive; 
ETS 
Directive 

Renewable 
Energy 
Directive 

1996 

Economic; 
Regulatory 

2028 

Regulatory 

2025 

Planning; 
Regulatory 

2004 

Economic; 
Regulatory 

Renewable 
Energy 
Directive 

2 403 

3.7% 

2019 

Economic; 
Regulatory 

Non related 

650 

2.7% 

2025 

Economic 

Non related 

9 040 

2.4% 

2024 

Economic, 
Fiscal 

ETS 
Directive 

243 

2.0% 

Greece 

Bulgaria 

Austria 

Czechia 

Finland 

Germany 

Slovakia 

Improve 
conventional 
power system – 
Phasing out 
lignite 

Promotion of 
carbon capture 
and storage 
projects 

Enhancement of 
renewable 
energy through 
green gas 

Preferential 
feed-in tariffs 
for electricity 
produced from 
renewable 
energy sources 

Phasing out coal 
in energy 
production 

GHG-Hydrogen 
power plants and 
power plant 
strategy 

Decommissioning 
Thermal Power 
Plant 

Gradual decommissioning 
of old inefficient and more 
pollutant thermal power 
units and interconnection of 
certain islands with the 
mainland grid. 

Support for innovative low-
CO2 technologies in 
energy-intensive industries 

Market uptake of 
renewable gases (mainly 
biomethane and hydrogen) 
both in the existing gas grid 
as well as in dedicated 
hydrogen grids. 
The law defines minimal 
feed-in tariffs for electricity 
produced from RES and 
guarantees its long-term 
validity and obligation of 
distributors to connect 
sources using RES and 
purchase the electricity 
from RES. 
Legislation prohibits use of 
coal in energy production 
from 1 May 2029. 
Planned tender for 7 GW of 
hydrogen-capable power 
plants (of which 5 GW are 
new installations and up to 
2 GW are modernisations) 
Decommissioning of the 
Vojany coal-fired power 
plant. Termination of 
electricity production. 

Challenges and opportunities 

The decarbonisation of the energy supply sector presents significant opportunities for the 
EU, particularly through advances in renewable energy technologies and hydrogen 
production. The EU’s industry has the potential to play a key role in providing these 
technologies, based on a still strong industrial basis and research and innovation (R&I) 

41 

 
 
 
 
 
 
 
 
 
 
  
 
 
 
performance 34. Between 2021 and 2023, EU electricity consumers saved EUR 100 billion 
thanks to electricity generation from new solar PV and wind capacity, demonstrating the 
importance of unlocking renewable energy’s potential to reduce fossil fuel reliance and 
lower costs35.  The Clean Industrial Deal and the Net-Zero Industry Act (NZIA) emphasise 
the development of clean energy infrastructure, such as electrolysers for renewable 
hydrogen, which saw EU installed capacity grow from 228 MWe in 2023 to 663 MWe in 
2024. Small modular reactors (SMRs) are also being promoted as a more dispatchable 
nuclear option. 

Despite these opportunities, the EU faces challenges in decarbonising its energy supply. 
For instance, the EU still holds a strong position in the wind energy, heat pumps, solar 
thermal technology and biomethane, but the sectors need new momentum, also to cope 
with increasing external competition. The EU lags behind China in reactor construction 
capacity, with only 5.3% of global new nuclear reactor projects led by EU-based firms. 
Similarly, the hydrogen sector grapples with high production costs and dependencies on 
non-EU countries for critical materials like cobalt and vanadium used in renewable fuels. 
Geothermal energy, though a promising renewable source, faces hurdles in scaling up due 
to reliance on non-EU manufacturers for key components like steam turbines and 
expanders. Furthermore, skills shortages and an ageing workforce in nuclear and energy-
intensive sectors threaten progress, necessitating targeted reskilling and training 
programs. 

To address these challenges, the EU must prioritise innovation and streamline regulatory 
processes. The Competitiveness Compass and Strategic Energy Technology Plan highlight 
the need for coordinated research and development (R&D) to reduce dependencies on 
critical raw materials and improve energy efficiency. Accelerating permitting for energy 
projects, as outlined in the Electrification Action Plan, will also be critical to modernising 
grids and expanding renewable infrastructure. Meanwhile, financial instruments like the 
European Hydrogen Bank, allocating EUR 720 million in 2024 for hydrogen projects, can 
mitigate investment risks and support scaling. By leveraging its existing technological 
advantages, fostering domestic manufacturing, and addressing workforce gaps, the EU 
can strengthen its energy supply sector while advancing climate neutrality goals. 

4.2 Industry emissions 

The industry sector is central to the EU’s transition towards climate neutrality. First, it 
represents almost a fourth of EU’s current emissions, being an important element of the 
decarbonisation of the EU’s energy system. Furthermore, it manufactures the climate 
solutions of the future, including innovative construction materials, sustainable transport 

34 2025 Competitiveness Progress Report. 
35 How much money are European consumers saving thanks to renewables? – Renewable Energy Market Update - June 
2023 – Analysis - IEA 

42 

 
 
solutions and new technologies that enable emissions reductions across the society. 
Beyond emissions, a competitive and resilient industrial base is vital to EU’s strategic 
autonomy — scaling clean-tech manufacturing, diversifying and shortening supply chains, 
and improving resource and energy efficiency to reduce dependencies, create quality jobs 
and strengthen global competitiveness. An EU industry that can thrive in a global 
competitive environment is key. 

Emissions from the industry are reported under two main categories in the greenhouse gas 
inventories: 

•  Fuel combustion in industry (1.A.2 - Manufacturing industries and construction), 
• 
Industrial processes and product use (2 - Industrial Processes and Product Use). 

The first category covers emissions from fuel combustion in various industrial activities, 
such as iron and steel industry, glass, ceramics, cement production, and chemical 
manufacturing. The second category includes emissions directly emitted during industrial 
production. 

Historical developments, trends and projections 

In 2023, the industrial sector accounted for 22% of total EU greenhouse gas 
emissions, with 58% from fuel combustion and 42% from industrial processes. As 
shown in Figure 19, the non-metallic mineral industry, including cement, glass, and 
ceramics, was responsible for 28% of total industrial emissions, followed by the iron and 
steel and chemical industries (each contributing 24%). 

Figure 19: Industrial emissions by industry sub-sector (2023, %) 

Between 2005 and 2023, total industrial emissions declined by 36%. Emissions from fuel 
combustion decreased by 34%, and process-related emissions by 38%, indicating 
a comparable pace of reduction in both categories. 

43 

 
 
The rate of emission reduction accelerated in recent years (see Figure 20). Over one-third 
of the total reduction since 2005 occurred between 2019 and 2023. If this trend continues, 
the emissions in the industrial sector are likely to align with its estimated contribution to 
the 2030 EU climate targets. Projected emissions, when additional measures – i.e. 
measures that have been planned but not yet adopted and implemented – are considered, 
converge to the expected contribution. This indicates that full and effective 
implementation of planned measures is necessary to close the gap. 

Figure 20: Emissions in industry (1990-2023) and projections (2024-2050) 

Note: Based on 2025 GHG inventories and 2025 GHG projections submitted by Member States. The estimated 
contribution to the EU 2030 EU target is based on the modelling outcomes of the core policy scenario supporting the Fit-
for-55 initiatives. 

As illustrated in Figure 21 below, Malta and Cyprus are the only Member State where 
industrial emissions have increased since 2005. Malta's GHG emissions increased by 
293% between 2005 and 2023, primarily due to a rise in emissions from refrigeration and 
air conditioning systems. Latvia has seen only a minimal reduction (-2%), and Austria also 
saw limited progress (-7%). By contrast, Estonia achieved the largest reduction (-72%), 
followed by Spain (-51%), Romania and Italy (each -48%). 

44 

 
 
Figure 21: Change in industrial emissions by Member State (2005-2023, %) 

 Main drivers 

Due to data availability, the analysis in this section focuses on 1995-2023. Figure 22 shows 
the decomposition analysis of the sector at EU level. 

Figure 22: Decomposition of emission in industry (1995-2023)  

Decomposition factors: 

= 𝐺𝑉𝐴 𝑖𝑛𝑑 ∗ 𝑃𝑉𝐼𝑖𝑛𝑑
𝐺𝑉𝐴𝑖𝑛𝑑

𝐺𝐻𝐺𝑖𝑛𝑑 = 𝐺𝐻𝐺𝐸 + 𝐺𝐻𝐺𝑃 
∗ 𝐹𝐸𝐶𝑖𝑛𝑑
𝑃𝑉𝐼𝑖𝑛𝑑

∗ 𝐺𝐻𝐺𝐸
𝐹𝐸𝐶𝑖𝑛𝑑

  +  𝐺𝑉𝐴 𝑖𝑛𝑑 ∗

𝑃𝑉𝐼𝑖𝑛𝑑
𝐺𝑉𝐴𝑖𝑛𝑑

∗ 𝐺𝐻𝐺𝑃
𝑃𝑉𝐼𝑖𝑛𝑑

GVA – Economic activity 
PVI/GVA – Production per unit of GVA 
FEC/PVI – Energy use per unit of product 
GHG_E/FEC – Emission intensity of 
energy used 
GHG_P/PVI – Process emission per unit 
of product 

GVA – Gross Value Added (constant price) 
PVI – Production Volume Index 
FEC – Final Energy Consumption 
GHG_E – GHG emissions related to Energy use 
GHG_P – GHG emissions related to industrial Processes 

If emissions had followed the growth of the sectoral gross value added (GVA), they would 
have been 41% higher in 2023 compared to 1995. However, the decline in emission and 
energy intensity of industry has played a central role in reversing this trend. Today, less 
energy is required to produce one unit of output and the energy used is cleaner. In addition, 
direct process emissions have also decreased. Together, these developments represent 
key drivers of industrial decarbonisation. 

45 

 
 
 
 
 
 
 
A last important factor is the transformation of production chains. Over time, industries 
have shifted towards producing goods with higher value added, which generally results in 
lower emissions per euro of output. This shift may be driven by: 

•  a move towards more complex or technologically advanced products, 
•  changes in the composition of industrial subsectors, or 
• 

lower costs of intermediate goods (e.g. due to cheaper feedstocks), which increase 
GVA by widening the gap between output and input values. 

This effect is captured by the production per unit of GVA component of the decomposition 
identity, which is indeed negative over the observed period. 

Analysing GHG emissions in the industrial sector presents several complexities. A key 
challenge, as seen above, is differentiating between energy-related emissions – arising 
from fuel combustion – and process-related emissions, which result from chemical or 
physical transformations during production. Furthermore, the industrial sector is highly 
diverse, with sub-sectors varying considerably in their emission intensities and 
technological capabilities. Therefore, a more detailed, sub-sector-specific analysis is 
required to develop effective and targeted strategies for emissions reduction, with 
particular focus on energy-intensive industries 36. 

Table 13: Drivers behind emissions reductions in Energy Intensive Industries 1995-2023 (%) 

Table 13 details the drivers behind emission reductions in the most energy intensive 
industries.  All subsectors achieve between 27% (minerals including cement) and 60% 
(chemicals) emissions reduction between 1995 and 2023. The emissions reduction in the 
chemical industry is largely due to process efficiency improvements, and this is achieved 
in combination with an increase in economic activity. According to the EU’s GHG inventory 
report 2024 37, the most significant abatement of a GHG in the chemical sector is forN2O, 
notably in ammonia, nitric acid and adipic acid production. This is due to several factors 
such as high natural gas prices and the inclusion in the EU ETS, which led to process 
improvements and the installation of abatement technologies. Other sectors have seen 

36

 This includes basic-metal manufacturing (mainly iron and steel), non-metallic mineral (notably, cement and lime) 

chemical, and pulp and paper production. 
37 Annual European Union greenhouse gas inventory 1990–2022 and inventory document 2024 | European Environment 
Agency's home page 

46 

 IndustryChemicalsMetalsMineralsPulp and paperEconomic activity42.1%28.7%-16.2%6.6%22.6%Production per unit of GVA-10.9%-7.9%20.0%-15.0%-4.3%Energy use per unit of product-28.2%-13.1%-21.0%-3.9%-8.6%Emission intensity of energy used-16.0%-10.7%-6.2%-8.1%-32.0%Process emissions per unit of product-23.9%-56.6%-19.8%-6.7%-16.2%TOTAL CHANGE-36.8%-59.5%-43.2%-27.0%-38.6% 
 
 
stagnating (minerals) or declining (metals) activity. The pulp and paper sector has reduced 
its energy consumption while increasing its output (primarily before 2005), improving its 
energy efficiency. Notably, the recycling rate of paper increased since the 2000s, which 
reduces primary raw material and energy use. 

There are significant differences in emission intensity across EU Member States. We 
present two examples: 

•  basic metal industry (iron and steel production) 
•  non-metallic mineral industry (for example cement, glass, ceramics) 

Basic metals 

Between 2018 and 2023, the metal industry in Czechia emitted nearly 11 kg of CO2eq for 
every euro of value added - almost four times the EU average (3.1 kg). Slovakia’s 
production is also carbon-intensive, at about 7 kg of CO2eq per euro. In contrast, some 
countries achieve much lower emission intensities. For example, Italy (1.8 kg) and Sweden 
(1.4 kg) both fall below the EU average, demonstrating that major steel-producing 
countries can operate with relatively low emissions. 

Non-metallic mineral industry 

Similar disparities exist in cement, glass and ceramics production. In Cyprus, these 
industries emit 9.9 kg of CO2eq for every euro of value added - four times the EU average of 
2.4 kg. By contrast, the Netherlands and Finland emit just 0.6 kg and 1.1 kg, respectively. 
However, the non-metallic mineral sector is quite varied, and part of these differences 
reflects the industry’s diverse structure and the different focus of each economy. 

Policies and measures 

Climate policies are key to reducing industrial greenhouse gas emissions by setting 
regulations, incentives, and targets that drive sustainable practices. The EU Emissions 
Trading System (ETS) creates a financial incentive by pricing carbon that generates 
revenues that can be reinvested in modernisation and innovation, while the Fit-for-55 
package supports cleaner energy and industrial efficiency. Member States can also apply 
additional tools such as carbon taxes or incentives and support for renewable and low-
carbon technologies like hydrogen and carbon capture. 

In 2025, in reporting on progress of national climate and energy plans, EU Member States 
outlined over 221 policies and measures targeting industrial process emissions (6% of all 
single policies and measures) and around 232 policies and measures focused on industrial 
energy efficiency (7%). 

47 

 
Figure 23: a) Number of single policies and measures the EU Member States reported as affecting industrial 
emissions; by status of implementation (b) and by main objective. 

(a) 

(b) 

Notes:  Data on policies and measures are based on a preliminary dataset of 2025 NECP progress reports (Annex IX). 
The charts combine policies and measures affecting emissions in industrial process and energy consumption with 
the specific objective of improve efficiency in industrial end-use sectors. Due to a delay in the submission, data for 
Belgium refer to the 2023 NECP progress reports. Member States can indicate more than one objective for the same 
policy and measure. In brackets, the EU PaM’s totals. Order of country is aligned to the share of policies and 
measures with an objective to improve efficiency in end-use sector. 

About half of these policies and measures aim at improving the efficiency in industrial end-
use sector (e.g. promotion, through financial mechanisms, of energy efficiency and RES in 
the industry, incentives for energy efficiency audits in industrial enterprises, etc). Another 
15% supported the deployment of abatement technologies (e.g. end-of-pipe solutions, 
clinker substitution, waste recycling). A similar number of policies and measures 
addressed fluorinated gas replacement, including decarbonisation pilots such as 
integrating electrolysis in ammonia production. Policies and measures relating to ‘Other 
industrial processes’ cover measures like investment promotion, capacity-building, and 
monitoring. 

Impact data on emission reductions was available for around a fifth of policies and 
measures targeting both industrial process emissions and efficiency in industrial end-use 
sector. This highlights a major gap in how Member States evaluate the effectiveness of 
their climate policies. As a result, Table 14 presents only an illustrative list of measures 
with reported impacts. Policies lacking impact data cannot be meaningfully assessed. 

48 

 
 
 
 
Table 14: Illustrative list of polices and measures affecting industrial process and efficiency in industrial end-use 
sectors 

Country 

Name of policy 
or measure 

Description 

Start year 

Type of 
instrument 

Related EU 
policy 

Bulgaria 

Greece 

Czechia 

Ireland 

Promoting 
hydrogen, 
including by 
developing 
alternative 
fuels 
infrastructure 

Reduction of 
emissions of 
fluorinated 
gases 

Implementation 
of the EU 
Regulation on 
fluorinated 
greenhouse 
gases 

Transposition 
of Mobile Air 
Conditioning 
Directive 
(Directive 
2006/40/EC) 

Slovakia 

Decarbonising; 
Effort Sharing 
Regulation, 
Energy Savings 

Belgium 

Reduce N2O 
emissions 
caprolactam 
production 

Slovenia 

Financial 
incentives for 
research, 
innovation and 

The 2023 National 
Roadmap improves 
the conditions for 
unleashing the 
development potential 
of hydrogen 
technologies. 
Implementation of 
the ‘MAC Directive’ 
(2006/40/EC) on air 
conditioning systems 
used in small motor 
vehicles, and the ‘F-
gas Regulation’ (No 
517/2014). 
Ban on introduction of 
fluorinated gases with 
high GWP for given 
purposes of use. 

The directive aims to 
reduce greenhouse 
gas emissions from 
vehicle air 
conditioning systems 
by phasing out the 
use of certain 
fluorinated 
greenhouse gases 
with high global 
warming potential. 
Change of fuel base 
in manufacture 
energy industry 
combustion. 
Transition from solid 
fossil fuels to natural 
gas, biomass and 
hydrogen. 
Environmental permit. 
A first phase includes 
the installation of an 
end-of-pipe 
technique, and a 
second phase includes 
a feasibility study to 
investigate additional 
measures. 
The measure 
addresses the need 
for increased 
investment in 

Emissions 
reductions 
in 2030 
(KtCO2eq) 

% of total 
industrial 
emissions 
in 2005 

1 480 

10% 

2025 

Regulatory 

Alternative 
Fuels 
Infrastructure 
Directive, ETS 
Directive; JTF 

2004 

Regulatory; 
Information 

F-gas 
Regulation;  

1 700 

6.8% 

2015 

Regulatory 

F-gas 
Regulation 
(2014) 

2029 

6.0% 

2011 

Regulatory 

Mobile Air-
conditioning 

240 

2.6% 

Effort 
Sharing 
Regulation 

Effort 
Sharing 
Regulation; 
Medium 
Combustion 
Plant 
Directive 

Other: Eco-
design 
Framework 
Directive 

2025 

Economic 

- 

Other 

2003 

Economic; 
Research 

49 

262 

1.4% 

373 

0.8% 

n.a. 

n.a. 

 
 
 
 
 
   
 
 
 
 
 
market take-off 
for low-carbon 
products and 
service 

research and 
innovation to support 
the transition to a 
climate-neutral 
economy.  

Challenges and opportunities 

The industrial sector faces significant challenges and opportunities in its pursuit of 
reduced emissions. Traditionally, this sector has been a substantial contributor to 
greenhouse gas emissions due to its reliance on fossil fuels and resource-intensive 
processes. Cement, steel, aluminium and chemical plants often require process heat 
above 500 °C, which today is almost entirely produced from fossil fuels. 

While the decomposition analysis shows that the past emission reduction is primarily due 
to gradually improved energy efficiency, the use of less emission-intensive energy sources 
and the reduction or specific process emissions, the coming decades require deep 
decarbonisation innovations across the industrial subsectors. However, retrofitting the 
industrial facilities with low-carbon alternatives, such as electric or hydrogen-based 
furnaces, faces barriers including high upfront costs, technology readiness levels that vary 
by application, and the need for upgraded grid and hydrogen infrastructure. 

At the same time, adopting innovative strategies presents numerous opportunities for 
transformation and sustainable development. 

The Clean Industrial Deal (CID) and the Action Plan for Affordable Energy (AEAP) 
presented in early 2025 outline actions to reduce energy bills, accelerate the energy 
transition and address structural challenges to complete the Energy Union. The Clean 
Industrial Deal represents such a step-change by embedding climate neutrality into 
industrial policy and supporting the large-scale deployment of clean technologies, thereby 
strengthening Europe’s manufacturing base and reducing strategic dependencies. With 
initiatives such as the proposed Industrial Decarbonisation Bank and the creation of lead 
markets, the CID aims to build the business case for decarbonised products in the EU. At 
the same time, the Affordable Energy Action Plan introduces structural measures to deliver 
stable and predictable energy costs, enhance efficiency, and expand renewable 
generation, ensuring that businesses can remain competitive while consumers benefit 
from affordable energy. Together, these initiatives mark a new phase in the Energy Union, 
where industrial strength and energy affordability are mutually reinforcing drivers of 
Europe’s long-term competitiveness and resilience. 

One promising avenue is the circular economy model, which emphasizes resource 
efficiency and waste reduction (e.g. through the Ecodesign for Sustainable Products 
Regulation). By redesigning products and manufacturing processes to maximize reuse, 
repair, and recycling of materials, industries can significantly lower their carbon footprints, 

50 

 
reduce dependencies and enhance resilience. Extending the lifespan of products and 
minimizing raw material extraction are crucial steps toward achieving this model. 

Moreover, advancements in clean technology offer significant potential for emission 
reductions. Investment in renewable energy sources, such as solar and wind, coupled with 
energy-efficient innovations in manufacturing, can drastically decrease reliance on 
carbon-intensive operations. The integration of digital technologies, like artificial 
intelligence, enhances process optimization, leading to further reductions in energy 
consumption and waste. 

4.3 Transport emissions 

Transport plays a crucial role in driving economic growth and enhancing quality of life 
across Europe by facilitating the efficient movement of goods, services, and people. Well-
developed transport networks support trade, connectivity, and labour mobility, which in 
turn stimulate regional development and social inclusion. However, the current European 
transport system faces significant sustainability challenges, including high greenhouse gas 
emissions, air pollution, and congestion, which threaten environmental goals and public 
health. 

More concretely, it is the only major economic sector in Europe where GHG emissions 
have increased since 1990 (+25%). It is also the largest contributor to nitrogen oxides 
emissions, which harm health and the environment and one of the main sources of 
environmental noise pollution in Europe. 

Recognising these issues, the European Union has adopted comprehensive policies such 
as CO2 standards for light and heavy-duty vehicles, the renewable energy directive and the 
emission trading system (ETS1 covering aviation and maritime, ETS2 covering road 
transport, among other sectors). 

Historical developments, trends and projections 

In 2023, transport emissions represented more than a quarter of the EU’s overall GHG 
emissions. They peaked in 2007, slowing down following the global financial and economic 
crisis, then rebounded and dropping significantly with the burst of the Covid-19 pandemic. 
As a result, in 2023 emissions decreased only slightly since 2005 (-5%). The road transport 
sector is responsible for most transport emissions (around 95%, or 73% when 
international shipping and aviation are included), with more than 70% of road transport 
emissions originating from passenger cars and vans. Between 2005 and 2023, emissions 
from road transport decreased by only 4%. This shows that improved vehicle efficiency and 
the uptake of low-emission powertrains have hardly outweighed the effect of the continued 
increase in road transport activity. Efforts to decarbonize the transport sector need to 
accelerate in order to meet the EU’s 2030 and 2050 climate objectives. 

51 

 
With current and planned policy measures in the EU Member States, GHG emissions from 
domestic transport are projected to decrease by about 30% in 2030 compared with 2005 
levels, bringing transport emissions to the estimated contribution to the 2030 EU climate 
target. However, considering only existing policies, projections still point to a gap of around 
90 MtCO2-eq (i.e. 13% of the estimated contribution). Full and effective implementation of 
planned policies and measures are therefore needed to align the emissions from domestic 
transport to the model-based results supporting the delivering of the European Green 
Deal. 

Figure 24: Emissions in domestic transport (1990-2023) and projections (2024-2050) 

Note: Based on 2025 GHG inventories and 2025 GHG projections submitted by Member States. The estimated 
contribution to the EU 2030 EU target is based on the modelling outcomes of the core policy scenario supporting the Fit-
for-55 initiatives. 

Since 2005, domestic transport emissions significantly fell in Luxembourg, Sweden, 
Finland and the Netherlands (between 45% and 25%), but surged in Malta, Lithuania, 
Romania and Poland (between 45% and 90%). Poland also shows the highest increase in 
emissions from the international aviation (285%), compared to 2005 level, according to 
GHG emission inventory data. 

52 

 
 
Figure 25: Change in domestic transport emissions by Member State (2005-2023, %) 

 Main drivers 

Due to data availability, the decomposition analysis is carried out from 2012 onwards. In 
addition, it only focuses on road transport emissions from light (i.e. including cars) and 
heavy-duty vehicles, which cover nonetheless more than 90% of emissions from domestic 
transport, at EU level. The analysis separates passenger from freight transport emissions. 
When examining passenger emissions, the increase in the number of cars appears to be 
the primary driver behind the rise in passenger emissions, while both population growth 
and distance travelled per capita played a minor role. The increase in the number of cars 
(for the same number of passenger kilometres travelled) may reflect greater car usage at 
the expense of other modes of transport (e.g. trains, trams, buses) and/or a lower 
occupancy rate per vehicle. Improvements in combustion efficiency, together with a 
reduction in the share of fossil fuels used in passenger transport, have mitigated the 
increase in emissions that would otherwise have occurred. The emissions intensity of 
transport modes did not significantly contribute to reducing emissions in passenger 
transport. Regarding freight transport, economic activity was the main factor driving 
increased emissions, although this was offset by improvements in fuel efficiency. The 
share of road transport in freight has slightly increased, indicating no significant modal 
shift towards alternatives such as rail. The reduction in the fossil fuel share in freight 
transport has only marginally contributed to lowering emissions. 

53 

 
 
Figure 26: Decomposition of emissions in domestic road transport (2012-2022)  

Passenger 

Freight 

Decomposition factors 

𝐺𝐻𝐺𝑡𝑟𝑎𝑛𝑠𝑝𝑜𝑟𝑡 = 𝐺𝐻𝐺𝑝𝑎𝑠𝑠𝑒𝑛𝑔𝑒𝑟 + 𝐺𝐻𝐺𝑓𝑟𝑒𝑖𝑔ℎ𝑡 = 𝑃𝑂𝑃 ∗

+𝐺𝐷𝑃 ∗

𝐹𝑇𝐷
𝐺𝐷𝑃

∗

𝑅𝐹𝑇
𝐹𝑇𝐷

∗

𝑇𝐹𝐶𝑓𝑟𝑒𝑖𝑔ℎ𝑡
𝑅𝐹𝑇

∗

𝑃𝑇𝐷
𝑃𝑂𝑃

∗

∗

𝑃𝐶
𝑃𝑇𝐷
𝐹𝐹𝐶𝑓𝑟𝑒𝑖𝑔ℎ𝑡
𝑇𝐹𝐶𝑓𝑟𝑒𝑖𝑔ℎ𝑡

𝐹𝐹𝐶𝑐𝑎𝑟𝑠
𝑇𝐹𝐶𝑐𝑎𝑟𝑠

∗

𝑇𝐹𝐶𝑐𝑎𝑟𝑠
𝑃𝐶
𝐺𝐻𝐺𝑓𝑟𝑒𝑖𝑔ℎ𝑡
𝐹𝐹𝐶𝑓𝑟𝑒𝑖𝑔ℎ𝑡

∗

∗

𝐺𝐻𝐺𝑝𝑎𝑠𝑠𝑒𝑛𝑔𝑒𝑟𝑠
𝐹𝐹𝐶𝑐𝑎𝑟𝑠

Passenger 

Freight 

POP – Population 
PTD/POP – Passenger travel distance per capita 
PC/PTD – Passenger cars per travel distance 
TFC/PC – Fuel consumption per car 
FFC/TFC – Share of fossil fuel in total fuel consumption 
GHG_p/FFC – GHG emissions per fossil fuel consumed 

POP – Population 
PTD – Passenger Travel Distance 
PC – Passenger Cars 
TFC – Total Fuel Consumption 
FFC – Fossil Fuel Consumption 
GHG_p – GHG emissions related to passenger transport 

GDP – Economic growth 
FTD/GDP – Freight travel distance per GDP 
RFT/FTD – Road freight travel distance over total freight 
travel distance 
TFC/RFT – Total fuel consumption over road freight travel 
distance 
FFC/TFC – Share of fossil fuel in total fuel consumption 
GHG_p/FFC – GHG emissions per fossil fuel consumed 

POP – Population 
FTD –Freight Travel Distance 
RFT – Road Freight Transport 
TFC – Total Fuel Consumption 
FFC – Fossil Fuel Consumption 
GHG_f – GHG emissions related to freight transport 

Policies and measures 

Robust climate policies are vital for cutting emissions in the transport sector, with road 
transport being a major contributor to the EU’s greenhouse gas footprint. The EU’s 

54 

                                                                           o ulation assenger travel distance er ca itaN  cars  er distancetravelledFuel consu  tion  ervehicleFossil  uel share in assenger trans ort assenger e issionintensit  cono ic gro thFreight travel distance  er D Road  reight trans ortshareFreight  uel e cienc Fossil  uel share in  reighttrans ortFreight e ission intensit                                      
 
 
 
 
 
 
 
 
 
 
regulatory framework, including CO₂ emission standards for vehicles and the EU 
Emissions Trading System’s gradual expansion, sets clear limits and incentives for cleaner 
mobility solutions. Initiatives under the European Green Deal and the Fit-for-55 package 
further support the shift to low- and zero-emission vehicles through investments in 
infrastructure, such as charging stations, and promotion of alternative fuels like hydrogen 
and bioenergy. Member States complement these efforts with policies like congestion 
charges, vehicle taxation reforms, and incentives for electric mobility, driving the sector’s 
alignment with the EU’s 2030 and 2050 climate targets. 

In 2025, in reporting on progress of national climate and energy plans, EU Member States 
reported close to 800 policies and measures targeting transport emissions (22% of all 
single policies and measures). 

Figure 27: a) Number of single policies and measures the EU Member States reported as affecting transport 
emissions; by status of implementation (b) and by main objective. 

(a) 

(b) 

Notes: Data on policies and measures are based on a preliminary dataset of 2025 NECP progress reports (Annex IX). 
Due to a delay in the submission, data for Belgium refer to the 2023 NECP progress reports. Member States can 
indicate more than one objective for the same policy and measure. In brackets, the EU PaM’s totals. Order of country 
in figure (b) is aligned to the share of policies and measures targeting electric road transport. 

More than a fifth of these policies and measures aim at supporting the electrification of 
road transport, by, for example, supporting EV charging infrastructure, point operator, or 
subsidies for the purchase of public-transport vehicles running on clean energy. Another 
14% aims at improving transport infrastructure or supports the switch to low carbon fuel 
(13%).  Another group of policies tackle the demand side, such as modal-shift (9%), 

55 

 
 
 
demand reduction (12%) or improve behaviour (12%), such as information campaigns, or 
training of drivers and goods vehicles fleet managers, with the aim of raise awareness 
among citizens and professionals, but also fiscal measure, like the introduction of 
mileage-based toll for trucks. A fewer number of measures addresses emissions from 
international air or maritime transport (4%). These include measures such as the 
electrification of port berths to reduce ship emissions during port stays (so‑called cold 
ironing), or the capacity restrictions on airports. 

Data on policy impact on emission reductions by 2030 was available for around 16% of 
policies and measures targeting transport emissions. This highlights a major gap in how 
Member States evaluate the effectiveness of their climate policies. As a result, Table 15 
presents only an illustrative list of measures with reported impacts. Policies lacking impact 
data cannot be meaningfully assessed. 

Table 15: Illustrative list of polices and measures affecting transport emissions 

Country 

Name of policy 
or measure 

Description 

Start 
year 

Type of 
instrument 

Related EU 
policy 

Emissions 
reductions 
in 2030 
(KtCO2eq) 

% of 
total 
transport 
emissions 
in 2005 

3 081 

12% 

2023 

Economic; 
Fiscal; 
Regulatory 

Regulation on 
CO2 
standards; 
Clean 
Vehicles 
Directive 

2024 

Economic 

Not related 

828 

11% 

2008 

Fiscal; 
Regulatory 

2012 

Regulatory 

Effort 
Sharing 
Regulation; 
Energy 
Efficiency 
Directive 

Effort 
Sharing 
Regulation; 
Alternative 
Fuels 
Infrastructure 
Directive; 
 Fuel Quality 
Directive 

1550 

7.1% 

510 

6.5% 

Austria 

Promotion of e-
Mobility 

Slovakia 

Passenger 
Modal shift 

Greece 

Transport 
measures 

Bulgaria 

Increasing the 
share of 
biofuels 

Whereas national subsidies 
for EV cars and LDV are 
slowly fading out, the 
purchase of HDV and urban 
buses with electric engines is 
still supported by national 
subsidy programs (EBIN / 
ENIN). 
The occupancy rate of 
passenger vehicles is expected 
to increase by 50% compared 
to 2020, reducing in particular 
the number of kilometres 
travelled by passenger 
vehicles up to 33% by 2050. 
Key measures include the 
electrification of road 
transport, supported by 
incentives for electric vehicle 
adoption and disincentives for 
older combustion-engine 
vehicles, alongside efforts to 
decarbonize logistics. 

In Bulgaria, ethanol and 
biodiesel production projects 
are the most promising.  
Biofuels will continue to be 
used in the coming years and 
the share of new biofuels will 
be gradually increased. 

56 

 
 
 
 
 
Spain 

Action plan 
international 
aviation 

These actions are grouped 
according to their nature as 
follows: (i) new forms of 
propulsion to reduce 
emissions; (ii) sustainable 
aviation fuels (SAF) and 
operational improvements; (iii) 
improvement of air traffic 
management; and (iv) 
implementation of market-
based measures. 

2022 

Planning 

Non related 

1 452 

1.4% 

Estonia 

Road usage 
fees for heavy 
duty vehicles 
based on time 

This measure includes the 
establishment of road user 
fees based on time, location, 
environmental aspects, etc. 

2018 

Fiscal 

Effort 
Sharing 
Regulation; 
Eurovignette 
Directive 

14 

0.6% 

Challenges and opportunities 

Technological advancements offer promising avenues for decarbonisation in the transport 
sector. The adoption of electric vehicles (EVs) is accelerating, triggered by EU legislation 
and supported by national incentives and infrastructure investments. Additionally, the 
integration of digital technologies, such as smart logistics, multimodal transport systems, 
and digital demand management, can optimise mobility patterns, reduce congestion, and 
enhance energy efficiency 38. EU and national policies that promote rail over road 
transport, invest in cleaner fuels, and encourage behavioural shifts towards sustainable 
modes of transport further bolster these technological opportunities. 

However, several challenges remain. The transport sector remains the only major EU 
economic sector where greenhouse gas emissions have increased over the past three 
decades. This is primarily due to rising demand for travel and freight, which outpaces 
efficiency gains. In aviation and maritime transport, the long lifespan of vehicles and 
vessels, coupled with limited availability of sustainable fuels, hinders rapid 
decarbonisation. 

The transition to a more sustainable transport system offers multiple benefits: it not only 
mitigates environmental impacts but also enhances public health and social equity. 
Reduced emissions lead to improved air quality, which can decrease health-related costs 
and increase life expectancy. Moreover, investments in sustainable transport 
infrastructure can promote social inclusion by improving access to mobility for 
underserved communities, thereby reducing transport poverty 39. Therefore, efforts to 
decarbonise transport can yield substantial co-benefits, aligning environmental goals with 
broader societal well-being. 

38 Transport and Environment Report 2022 | European Environment Agency's home page 
39 In 2025, the European Commission’s Joint Research Centre launched the Transport Poverty Hub to enhance regional 
connectivity across Europe.  

57 

 
 
 
 
4.4 Buildings emissions 

The building sector plays a key role in the long-term strategy on the reduction of 
greenhouse gas emissions. In the EU, nearly 15% of total GHG emissions are from 
buildings (22% of the ESR sector) and account for approximately 40% of energy consumed 
in the EU. Buildings are therefore the single largest energy consumer in Europe. Residential 
and commercial buildings consume energy primarily for heating, which represents about 
60% of the total energy demand in this sector, followed by cooling (around 10%), cooking 
(approximately 8%), and other uses such as lighting and appliances making up the 
remaining 22%. This significant energy demand still largely relies on fossil fuels, 
underscoring the sector’s vital role in the EU’s climate and energy transition goals. 
Enhancing energy efficiency in buildings and shifting to renewable energy sources are 
therefore key strategies to reduce emissions and achieve the EU’s climate neutrality 
targets by 2050. 

The main pathways to an EU decarbonised building stock are designed under the Energy 
Performance of Building Directive (EPBD) 40 and focus on setting cost-optimal minimum 
energy performance requirements, promoting high energy efficient buildings, 
strengthening the Energy Performance Certificate scheme and developing long-term 
renovation strategies with  a view to mobilising energy efficiency investments in residential 
and commercial buildings. The Recovery and Resilience Facility and Cohesion Policy 
allocate a significant portion of funds to improve energy efficiency in buildings. 

Emissions from buildings are reported under two main categories in the greenhouse gas 
inventories: 

•  Residential buildings (1.A.4.b); 
•  Non-residential buildings (Commercial/Institutional, 1.A.4.a). 

In order to facilitate comparison across countries and forecasted emissions, in this 
analysis the buildings sector also includes emissions from fuel combustion in agriculture, 
forestry and fishing (1.A.4.c) 41.  

Historical developments, trends and projections 

In 2023, buildings emissions represented nearly 15% of the EU’s overall GHG emissions, of 
which 60% from residential buildings, and 23% from non-residential buildings (commercial 
and institutional). The pace of emissions reduction visibly increased after 2005. Between 
2005 and 2023, emissions from residential buildings dropped by 37%, non-residential 
building by 36%, while fuel combustion in farms and fishery installation by 13%. Emission 

40 https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=OJ:L_202401275 
41

 This includes emissions from stationary sources like heating and machinery used on farms, forestry operations, and 

fish farms, as well as mobile sources like tractors, fishing boats, and other machinery used in these activities. 

58 

 
 
reductions were due to a combination of factors, including stricter energy efficiency 
standards for new buildings, improved energy efficiency in existing buildings, and a shift 
towards cleaner energy sources for heating and electricity. A general trend toward warmer 
winter temperatures, and therefore reduced winter heating needs, has also contributed to 
the emission reductions from buildings (see below). 

With current and planned policy measures in the EU Member States, GHG emissions from 
buildings are projected to decrease by about 50% in 2030 compared with 2005 levels, to 
around 330 MtCO2-eq. Still, projections point to a gap of around 80 MtCO2-eq to the 
contributions from the model-based results supporting the delivering of the European 
Green Deal. Therefore, additional efforts are needed in the building sector. 

Figure 28: Emissions in residential and non-residential buildings (1990-2023) and projections (2024-2050) 

Note: Based on 2025 GHG inventories and 2025 GHG projections submitted by Member States. The estimated 
contribution to the EU 2030 EU target is based on the modelling outcomes of the core policy scenario supporting the Fit-
for-55 initiatives. 

Since 2005, all EU Member States reduced emissions in buildings, with the exception of 
Malta (+12%) and Romania (+6%). As illustrated in Figure 29 below, the highest emission 
reductions were achieved by Greece, Sweden, Denmark and Slovenia, with cut above 50%. 
In several Member States with a high starting share of emissions in buildings relative to 
their total GHG emissions (above 10% in 2005), emission reduction was lower that the EU 
average. This was the case of Latvia, Luxembourg, Poland, and, to a lesser extent, Italy, 
Germany and Ireland. 

59 

 
 
Figure 29: Change in residential and non-residential emissions by Member State (2005-2023, %) 

Main drivers 

According to a recent report, about 35% of the EU’s buildings are over 50 years old and 
almost 75% of the building stock is energy inefficient. At the same time, only about 1% of 
the building stock is renovated each year 42. This contributes to high energy consumption, 
the main source of emissions for buildings. 

Due to data availability, the decomposition analysis focuses on 2006-2023. Emissions for 
buildings can be distinguished between emissions from households and from non-
residential or commercial buildings. 

In the residential sector, factors such as population growth, decreasing household sizes, 
and a tendency to live in larger housing units would have resulted in increased emissions. 
However, these effects were more than offset by a reduction in energy consumption per 
unit of floor area, a shift towards lower fossil fuel use per unit of energy consumed, and a 
decline in GHG emissions from fossil fuel combustion. Additionally, climatic conditions—
particularly milder winters—also contributed to the overall reduction in emissions 43. 

The decline in emissions was even more pronounced in the non-residential, or 
commercial, building sector. In this sub-sector, the primary driver appears to be the 
reduced emission intensity associated with fossil fuel consumption. This may be 
attributed to fewer financial constraints, or the presence of stronger incentives, enabling 
more significant improvements in the efficiency of heating and cooling systems. 

42 Zangheri, P. et Al., Progress of the Member States in implementing the Energy Performance of Building Directive, 
Publications Office of the European Union, Luxembourg, 2021, EN, ISBN 978-92-76-25200-9, doi:10.2760/914310, 
JRC122347. 
43 The climate correction applied refers to dividing the energy consumption by the average of the sums of heating and 
cooling degree days for the EU over the whole period. The number of heating degree days are expected to decrease over 
time while the cooling degree days will increase over time due the effect of climate change. The correction allows to 
observe the difference in energy consumption due to climate change compared to the general trend in the EU. 

60 

 
 
 
Figure 30: Decomposition of emission in residential and non-residential buildings (2006-2023)  

Household
s 

Commercial 

Decomposition factors 

𝐺𝐻𝐺ℎ = 𝑃𝑂𝑃 ∗

∗

𝐹𝐴ℎ
𝐻𝑆𝐻

𝐺𝐻𝐺𝑏𝑢𝑖𝑙𝑑𝑖𝑛𝑔𝑠 = 𝐺𝐻𝐺ℎ + 𝐺𝐻𝐺𝑐 
𝐹𝐸𝐶ℎ
𝐻𝑆𝐻
𝐹𝐸𝐶ℎ,𝑐𝑐
𝑃𝑂𝑃
𝐹𝐹𝐶𝑐
𝐹𝐸𝐶𝑐

𝐹𝐸𝐶ℎ,𝑐𝑐
𝐹𝐴ℎ
𝐹𝐸𝐶𝑐
𝐹𝐸𝐶𝑐,𝑐𝑐

∗∗

∗

∗

∗

𝐺𝐻𝐺𝑐 = 𝐹𝐸𝐶𝑐,𝑐𝑐 ∗

𝐺𝐻𝐺𝑐
𝐹𝐹𝐶𝑐

∗

𝐹𝐹𝐶ℎ
𝐹𝐸𝐶ℎ

∗

𝐺𝐻𝐺ℎ
𝐹𝐹𝐶ℎ

Households (subscript h) 

Commercial (subscript c) 

POP – Population 
HSH/POP – Household per capita 
FA/HSH – Floor area per dwelling 
FEC_cc/FA – Climate corrected final energy 
consumption by floor area 
FEC/FEC_cc – Real final energy consumption over the 
climate corrected one 
FFC/FEC – Fossil fuel consumption in final energy 
consumption 
GHG_h/FFC – GHG emissions over fossil fuel 
consumption 

FEC_cc – Climate corrected final energy consumption 
FEC/FEC_cc – Real final energy consumption over the 
climate corrected one 
FFC/FEC – Fossil fuel consumption in final energy 
consumption 
GHG_h/FFC – GHG emissions over fossil fuel 
consumption 

POP – Population 
HSH – Households (dwellings) 
FA – Floor Area 
FEC – Final Energy Consumption 
 FEC_cc– Climate Corrected Final Energy Consumption 
FFC – Fossiel Fuel Consumption 
GHG_h – GHG emissions related to households 
GHG_c – GHG emissions related to commercial buildings 

Policies and measures 

Effective climate policies are crucial for reducing emissions in the buildings sector, which 
accounts for a significant share of the EU’s energy consumption and greenhouse gas 

61 

                                                                          o ulationD elling  er ca itaFloor area  er d ellingCli ate corrected energ consu  tion     oor areaCli atic e ect (households Fossil  uel share(households   ission intensit  o   ossilenerg  (households Cli ate corrected energ consu  tion (co  ercial Cli atic e ect (co  ercial Fossil  uel share(co  ercial   ission intensit  o   ossilenerg  (co  ercial                                    
 
 
 
 
 
 
 
emissions. The EU’s policy framework, including the Energy Performance of Buildings 
Directive and the Renovation Wave strategy, drives improvements in energy efficiency and 
promotes the uptake of low-carbon heating and cooling technologies. The Fit-for-55 
package further strengthens these efforts by setting ambitious targets for building 
renovations and clean energy integration. Member States enhance these initiatives with 
national renovation programs, financial incentives for energy-efficient upgrades, and 
regulations encouraging the use of renewable energy sources in buildings, thereby 
advancing the EU’s climate neutrality ambitions by 2050. 

In 2025, in reporting on progress of national climate and energy plans, EU Member States 
reported over 660 policies and measures aiming at reducing energy consumption in 
buildings (nearly 20% of all single policies and measures) 44. 

Figure 31: a) Number of single policies and measures the EU Member States reported as affecting emissions in 
buildings; by status of implementation (b) and by main objective. 

(a) 

(b) 

Notes: Data on policies and measures are based on a preliminary dataset of 2025 NECP progress reports (Annex IX). 
Due to a delay in the submission, data for Belgium refer to the 2023 NECP progress reports. Member States can 
indicate more than one objective for the same policy and measure. In brackets, the EU PaM’s totals. Order of country 
in figure (b) is aligned to the share of policies and measures targeting efficiency improvement in buildings. 

Most of these policies and measures aim at improving efficiency in residential buildings 
(52%), while 22% are targeting efficiency in service/tertiary units. Another 16% of reported 

44 This number is obtained by aggregating the policies and measures reported by the EU Member States affecting the 
‘Energy consumption’ sector with the specific objective of improving the efficiency of buildings and appliances. It also 
considers other objectives in the ‘Energy consumption’, like demand management, research and innovation, or other 
initiatives, where the description of the policies and measures explicitly referred to buildings. 

62 

 
 
 
 
policies and measures are supporting energy efficiency of appliances. Other policies and 
measures are directed to reduce demand, such as progressive electricity tariff 
mechanism, measures to phasing out of incandescent lights, or obligation to integrate 
renewable energy sources in existing and newly constructed buildings. 

Data on policy impact on emission reductions was available for around 17% of policies 
and measures targeting buildings emissions. This highlights a major gap in how Member 
States evaluate the effectiveness of their climate policies. As a result, Table 16 presents 
only an illustrative list of measures with reported impacts. Policies lacking impact data 
cannot be meaningfully assessed. 

Table 16: Illustrative list of polices and measures affecting buildings emissions  

Country 

Name of policy 
or measure 

Description 

Start 
year 

Type of 
instrument 

Related EU 
policy 

Emissions 
reductions 
in 2030 
(KtCO2eq) 

% of 
total 
building 
emissions 
in 2005 

6 347 

43% 

673 

12% 

1110 

7.6% 

12 200 

7.5% 

2008 

Economic; 
Fiscal; 
Regulatory; 
Information 

2020 

Economic 

2021 

Economic 

2020 

Regulatory 

Effort 
Sharing 
Regulation; 
 Energy 
Performance 
of Buildings 
Directive 

Energy 
Performance 
of Buildings 
Directive 

Energy 
Efficiency 
Directive; 
Energy 
Performance 
of Buildings 
Directive 

Effort 
Sharing 
Regulation 

2011 

Economic; 
Information; 
Education 

Effort 
Sharing 
Decision 

538 

4.8% 

2024 

Regulatory; 
Economic; 
Information 

Energy 
Efficiency 
Directive; 

630 

4.5% 

Greece 

Energy 
efficiency 
measures in 
Residential and 
Tertiary Sectors 

Finland 

Czechia 

Subsidies for 
retrofitting in 
housing 

Energy 
efficiency 
measures in 
residential 
sector in the 
period 2021-
2030 

Germany 

GHG-Building 
Energy Act 
(GEG) 

Ireland 

Better Energy 
Homes  

Austria 

Accelerated 
replacement of 
Fossil Fuels in 
Building Stock 

In the building sector, policies 
aim to decarbonize by 2050 
through renovations, 
renewable energy integration, 
and electrification of heating. 
Public and private buildings 
benefit from financial 
incentives, simplified 
procedures, and energy 
management systems. 
The aim is to improve the 
energy performance of 
existing residential houses 
and increase the production 
and use of renewable energy 
in a building.  

The aim is the improvement 
of energy performance of 
single and multi-family 
buildings (thermal insulation, 
replacement of old inefficient 
boilers by new boilers). 

The Building Energy Act was 
revised in September 2023 to 
include requirements for the 
installation of renewable 
heating systems ("Heating 
Act"). 
The Better Energy Homes 
scheme by SEAI provides 
homeowners in Ireland with 
both financial incentives and 
support for energy-efficient 
upgrades. 
Obligation for replacement of 
liquid and solid fossil fuel 
heating systems in existing 
buildings and the restriction of 

63 

 
 
 
 
 
 
 
gaseous fossil fuel use for 
heating purposes apply. 

Improving of energy efficiency 
in building sector. Reducing 
energy demand of existing 
buildings to nearly zero 
energy levels by significantly 
improving their energy 
performance and 
decarbonising fuel supplies.  
It is based on an obligation 
imposed by public authorities 
on energy sellers to achieve 
energy savings. 

Energy 
Performance 
of Buildings 
Directive 

Effort 
Sharing 
Regulation; 
Energy 
Efficiency 
Directive 

Energy 
Efficiency 
Directive 

2025 

Economic 

2006 

Regulatory; 
Economic 

286 

4.3% 

3 500 

3.2% 

Slovakia 

Building 
Insulation 

France 

White 
certificate 
scheme 

Challenges and opportunities 

The reduction of emissions from the heating and cooling of buildings presents significant 
opportunities within the European Union's framework for energy efficiency. The Energy 
Performance of Buildings Directive (EPBD) focuses on enhancing building performance 
through cost-optimal energy performance requirements and promoting Nearly Zero-
Energy Buildings (NZEBs). The integration of renewable energy sources and advanced 
technologies, such as heat pumps and district heating systems, offers substantial 
potential to reduce dependency on fossil fuels and improve energy efficiency. These 
technologies not only contribute to emissions reductions but also support the EU's goals 
for a sustainable energy transition. 

However, the challenges in achieving these reductions are substantial. The renovation rate 
of the existing building stock remains low, far short of the rate needed to meet the EU's 
climate goals. Financial barriers, including high upfront costs and long payback periods, 
hinder the implementation of deep renovation measures. Overcoming these challenges 
requires comprehensive policy measures, financial incentives, and efforts to increase 
public awareness and trust in energy performance improvements. 

4.5 Waste emissions 

The waste sector accounts for a small part of total EU greenhouse gas (GHG) emissions 
(i.e. about 3% of total GHG emissions and around 5% of the emissions covered by the EU 
Effort Sharing Regulation). In some Member States the share is more substantial; for 
example, in Portugal it is around 10% of total emissions. 

However, reducing GHG emissions from waste also has positive effects on our lives and a 
better use of waste as a resource (by substituting virgin raw materials) can help reduce 
emissions in other sectors. The way we produce, use, re-circulate and dispose of materials 

64 

 
 
 
is crucial, and we can track emissions from these actions under the Waste management 
sector in the officially reported GHG inventories 45. 

The sector includes: 

•  solid waste disposal; 
•  biological treatment of solid waste; 
• 
•  wastewater treatment and discharge (further excluded from this text to keep focus 

incineration and open burning of waste; 

on solid waste). 

Emissions from energy recovery of waste, processing recycled materials and transporting 
waste are not reported in the waste sector but in the energy, manufacturing and transport 
sectors. Therefore, actual emissions generated by waste are in fact higher than reported 
waste emissions, which shows its cross-sectoral nature. This section focuses mainly on 
emissions from the waste sector, other aspects like environmental impacts (natural 
resources, pollution etc.) are not covered by this text. 

Historical developments, trends and projections 

In 2023, waste management emissions were 41% and 30% below the level of 1990 and 
2005, respectively. 

Over the same period, emissions from solid waste disposal (currently representing more 
than 2/3 of waste emissions) declined by 35%, while wastewater treatment (close to a fifth 
of current waste emissions) were down by 23%, with a minor contribution from industrial 
wastewater (i.e. -5%). Conversely, the emissions from the biological treatment and from 
the open burning of solid waste have increased (i.e. by 86% and 32%, respectively), but 
these sources are relatively small within the overall waste management emissions. 

Waste sector emissions could decrease further once all current EU waste policies are fully 
implemented. The speed of reduction is projected to slightly increase, from an average 
annual reduction of around 2.7 MtCO2-eq to 2.9 MtCO2-eq up to 2030 and further increase 
to 3.2 MtCO2-eq between 2030 and 2040, according to the Commission analysis 
supporting the Communication on the 2040 target. 

45 Source sector CRF5 Waste management in IPCC 2006 Guidelines. Guidelines are available at Publications - IPCC-TFI 
(iges.or.jp). 

65 

 
 
Figure 32: Emissions in waste (1990-2023) and projections (2024-2050) 

Note: Based on 2025 GHG inventories and 2025 GHG projections submitted by Member States. The estimated 
contribution to the EU 2030 EU target is based on the modelling outcomes of the core policy scenario supporting the Fit-
for-55 initiatives. 

With current and planned policy measures in the EU Member States, waste emissions are 
projected to decrease by about 47% in 2030 compared with 2005 levels, bringing waste 
emissions slightly below to the model-based estimated contribution to the 2030 EU 
climate target. 

Compared to 2005 level, the highest reductions in 2023 were reported by Germany (72%), 
Sweden (66%), Belgium, (64%), the Netherland (62%), Poland (62%) and Austria (60%). On 
the other hand, five Member States increased its emissions, Czechia (28%), Slovakia 
(19%), Croatia (19%), Greece (18%), and Denmark (10%) and the reduction in Spain, Malta 
and Romania was limited (see Figure 33). 

Figure 33: Changes in GHG emissions from the waste sector by Member State (2005-2023, %) 

66 

 
 
 
Main drivers 

Emissions from waste are driven not only by waste generation but also by several other 
underlying factors ranging from the emission intensity and composition of the waste 
treatment methods. 

Figure 34: Decomposition of emission in waste (2016-2023)  

Decomposition factors: 

𝑊𝐴𝑆𝑇𝐸𝑠𝑤
𝑃𝑂𝑃 
+ 𝑃𝑂𝑃 ∗ 𝑊𝐴𝑆𝑇𝐸𝑤𝑤
∗

𝐺𝐻𝐺𝑤𝑎𝑠𝑡𝑒 = 𝑃𝑂𝑃 ∗
𝐺𝐻𝐺𝑠𝑤
𝑊𝐴𝑆𝑇𝐸𝑠𝑤
𝐺𝐻𝐺𝑤𝑤
𝑊𝐴𝑆𝑇𝐸𝑤𝑤

𝑃𝑂𝑃

∗

POP – Affluence 
WASTESW/POP – Solid waste 
generated per capita 
WASTEWW/POP – Wastewater 
generated per capita 
GHGSW/WASTESW – Emission 
intensity per unit of solid waste 
GHGWW/WASTEWW – Emission 
intensity per unit wastewater 

POP – Population 
WASTE – Amount of waste generated 
GHG – Greenhouse gas emissions related to 
waste 
Subscript sw stand for solid waste, ww for 
wastewater 

The drivers for emission reduction can be attributed to two categories of waste: solid 
waste and wastewater. Due to data availability, the decomposition analysis could only be 
performed between 2016-2023. Over this period, waste emissions have decreased by 
around 6.6%. Efficiency gain in the treatment of both solid and wastewater waste was the 
main driver in reducing emissions in the waste sector, amid a slightly increase in waste 
production per capita of 0.2% and 2.4% for solid waste and wastewater respectively. 

Since there is a strong correlation between emission intensity and total emissions, 
Members States should focus on the reduction of emission intensity of their waste 
management systems, bearing in mind that waste prevention and reduction should always 
be prioritized according to the waste hierarchy 46. The differences among Member States 
are substantial (see Figure 35). Croatia produces nearly seven times more GHG emissions 
per produced tonne of solid waste than the EU average. On the other hand, Estonia, 
Belgium, and Poland produce less than a quarter of the EU average. 

46 As shown in the Climate Action Progress Report 2024 (SWD, Box on Waste emissions), there is not a 1:1 relation 
between waste generation per capita and waste emissions per capita. Member States with the highest municipal waste 
production (Austria, Denmark) have below-average emissions. This indicates that despite the high volume of waste, their 
waste management is very effective in terms of GHG emissions. On the other hand, low volume of waste does not 
necessarily mean low emission. Romania could be a good example of this – it has the lowest municipal waste 
production, but emissions are above the EU average. Therefore, the focus should be on the emission intensity indicator. 

67 

 
 
 
  
 
 
 
Figure 35: Emission intensity of solid waste (kgCO2-eq/tonne) (average 2018-2022) 

Similarly, emissions per capita show visible differences. Cyprus emits three times more 
GHG per capita than EU average and eleven times more than Germany, which has the 
lowest emissions. On this matter, the EEA concludes that waste sector GHG emissions 
would decrease by 53% from the 2021 level if all Member States reduce their emissions 
just to the average per-capita emissions of five best performing countries (Germany, 
Sweden, Belgium, Poland and Austria). 

Policies and measures  

In addition to and in implementation of relevant European directives such as the Waste 
Framework Directive, the Industrial Emissions Directive, and the Landfill Directive, EU 
Member States reported over 210 policies and measures related to the waste sector in 
2025. Of this, around 23% are new measures that Member States are implementing or 
planning to implement in or after 2023. These measures focus on various parts of the 
waste chain. Around 23% aim at enhancing recycling, through measures on waste sorting, 
packaging waste, or, for example, by introducing separate waste fraction (e.g. textile). 
Another 19% focus on waste prevention, such as weight-and-volume-based taxes, 
awareness raising, information campaigns and educational activities. Measures to reduce 
landfilling and improve landfill management are also well represented (around 23% of total 
waste-related policies and measures). 

Regulatory policies are the most reported by Member States and most are linked to EU 
policy – specially the Waste Framework Directive and Landfill Directive, reflecting 
substantial regulatory requirements in EU waste policy to be met by countries. 

68 

 
 
 
 
Figure 36: a) Number of single policies and measures related to waste by status of implementation b) and by main 
objective.  

(a) 

(b) 

Notes: Data on policies and measures are based on a preliminary dataset of 2025 NECP progress reports (Annex IX). 
Due to a delay in the submission, data for Belgium refer to the 2023 NECP progress reports. Member States can 
indicate more than one objective for the same policy and measure. In brackets, the EU PaM’s totals. Order of country in 
figure (b) is aligned to the share of policies and measures targeting recycling. 

Data on policy impact on emission reductions was available for around 20% of policies 
and measures targeting waste emissions. This highlights gaps in how Member States 
evaluate the effectiveness of their climate policies. As a result, Table 17 presents only an 
illustrative list of measures with reported impacts. Policies lacking impact data cannot be 
meaningfully assessed. 

Table 17: Illustrative list of polices and measures affecting waste emissions 

Country 

Name of policy 
or measure 

Description 

Start 
year 

Type of 
instrument 

Related EU 
policy 

Greece 

Recovery of 
organic waste 

Reduction of the quantities of 
biodegradable wastes 
landfilled through the 
installation of solid waste 
treatment facilities. 

France 

Obligation to 
sort waste from 
economic 
activities 

Since 1 July 2016, economic 
activities (businesses and 
administrations) have been 
obliged to sort their paper, 

2002 

Regulatory; 
Planning 

2016 

Regulatory 

Landfill 
Directive; 
Waste 
Management 
Framework 
Directive; 
Waste 
Management 
Framework 
Directive 

Emissions 
reductions 
in 2030 
(ktCO2-
eq) 

% of 
total 
waste 
emissions 
in 2005 

1 900 

36% 

4 000 

17% 

69 

 
 
 
 
 
cardboard, plastic, metal, 
wood, and glass waste for 
material or energy recovery. 
Since 17 July 2021, this 
obligation has been extended 
to include the mineral fraction 
and plaster in construction 
and demolition waste, and it 
will apply to textile waste 
from 1 January 2025 
This plan focuses on waste 
prevention, aims at a higher 
share of recycling (50% for 
paper, plastic, glass and metal 
wastes), compulsory 
separation of biologically 
degradable communal waste 
to reach the limit of maximal 
35% going to landfill from the 
total biologically degradable 
communal waste. 
Programme for reaching 
preparing for re-use and 
recycling targets for municipal 
waste. Performance indicator: 
Number of waste recycling 
installations built. Responsible 
institutions: 
The aims is to reduce the 
environmental impact of 
landfills by establishing 
stringent criteria for the 
operation, design, and 
aftercare of landfill sites. 

The National Strategy for 
Reducing Food Waste aims of 
halving food waste by 2030  

Increase biological waste 
treatment. Operation of 
biological waste treatment 
plants. Implementation of 
separate collection of 
biological waste. Waste 
management plan period 
2021-2028. 
The investment aims at 
diverting waste away from 
landfills. it treats organic 
waste mainly collected from 
household and commercial 
entities all over the Maltese 
Islands.  

Czechia 

Waste 
management 
plan 2015-
2024 

Bulgaria 

Construction of 
waste recycling 
plants 

Ireland 

Landfill 
Directive 
(1999/31/EC) 

Germany 

GHG-Reduction 
of Food Waste 

Latvia 

Increase the 
processing of 
biodegradable 
waste till 206 
500 tonns/year 

  Malta 

High bio-waste 
capture 

2015 

Economic; 
Fiscal; 
Regulatory; 
Planning 

Waste 
Management 
Framework 
Directive 

330 

7.6% 

2021 

Regulatory 

Effort 
Sharing 
Regulation; 
 Waste 
Management 
Framework 
Directive 

245 

6.3% 

1999 

Regulatory; 
Planning 

Landfill 
Directive 

59 

4.1% 

2018 

Information 

2021 

Economic; 
Planning 

2028 

Other 

Waste 
Management 
Framework 
Directive 

Waste 
Management 
Framework 
Directive 

Waste 
Management 
Framework 
Directive 

91 

0.5% 

2 

0.3% 

n.a. 

n.a. 

When comparing historical GHG emission data with implemented policies, there was a 
correlation between countries that had introduced landfill bans on landfilling 
biodegradable waste and achieving the largest waste sector emission reductions. Ireland 
is the only exception to this. It has a high landfill tax and targets specific waste streams 

70 

 
 
 
 
 
 
through a national waste prevention programme while also achieving high emission 
reduction. 

Challenges and opportunities 

The emissions reported under the waste sector focus on the direct reduction of emissions 
linked to less waste and better waste management. However, the emission reduction 
potential of a more circular economy – where the value of products and materials is 
retained for as long as possible – goes beyond just the waste sector. 

The circular economy could reduce demand for virgin materials and thus reduce emissions 
of extraction and processing of these materials. However, emissions from these activities 
are reported under industry 47. On the other hand, a higher share of renewable energy could 
reduce the impacts of energy-intensive parts of the circular economy such as material 
waste recovery. Total emissions can only be reduced through coordinated policies along 
the whole value chain from design, production, consumption, and waste reuse. The 
circular economy has a cross-cutting character and is therefore considered a prerequisite 
for climate neutrality in the Circular Economy Action Plan 48. 

In August 2025, the European Commission launched public consultation for Circular 
Economy Act, which aims to establish a single market for secondary raw materials, 
increase the supply of high-quality recycled materials and stimulate demand for these 
materials in the EU. 

The cross-cutting character has one significant difficulty. As indicated above, the potential 
emission reductions due to circular economy measures are usually unquantified, hidden, 
or poorly captured in the reporting of policies and measures for reducing GHG emissions 
(only 6% of reported policies are considered circular economy-related) 49. For example, if 
glass waste is collected and processed into recyclables and used as secondary raw 
material in producing new glass, then the glass industry needs less energy than that used 
for producing the same glass from virgin materials. However, such processes are seldom 
reported as circular economy measures in the relevant manufacturing sector and their 
potential might be underestimated. Moreover, realising such potential requires 
collaboration along the whole value chain and across sectors. 

47 Source sector CRF2 Industrial processes and product use in IPCC 2006 Guidelines. Guidelines are available at 
Publications - IPCC-TFI (iges.or.jp). 
48 Communication from the Commission to the European Parliament, the Council, the European Economic and Social 
Committee and the Committee of the Regions: A new Circular Economy Action Plan For a cleaner and more competitive 
Europe. COM/2020/98 final 
49 https://www.eea.europa.eu/en/analysis/publications/capturing-the-climate-change-mitigation-benefits-of-circular-
economy-and-waste-sector-policies-and-measures 

71 

 
 
4.6 Agriculture emissions 

Agriculture plays a vital role in the European Union’s transition to a net-zero economy, 
deeply intertwined with people’s lives, their connection to nature, and sustainable 
lifestyles. The sector accounts for nearly 13% of the EU’s total emissions, primarily from 
methane and nitrous oxide. Beyond food production, agriculture provides biomass for 
feed, materials, and energy, and shapes rural landscapes and biodiversity, offering natural 
solutions like carbon sequestration in soils and forests. 

The EU’s commitment to reducing agricultural emissions is reflected in policies such as 
the Common Agricultural Policy (CAP) eco-schemes, the Industrial Emissions Directive, 
the Farm to Fork Strategy promoting sustainable food systems, and the EU Methane 
Strategy targeting reductions in livestock methane emissions, the EU Carbon Removals 
and Carbon Farming (CRCF) Regulation. Together, these initiatives encourage farmers and 
consumers to adopt climate-friendly practices, fostering a lifestyle that respects nature 
while steering Europe towards climate neutrality by 2050. 

The key sources of agricultural emissions included in GHG inventories are: 

methane and nitrous oxide (N2O) from livestock: 

•  Enteric Fermentation (3.A); 
•  Manure Management (3.B); 
•  N2O from agricultural soils (3.D). 

For the presentation of historical trends in emissions by subcategory, we have combined 
minor emissions categories into the single aggregate category ‘Other’: ‘Rice cultivation’ 
(CRF 3C), ‘Prescribed burning of savannahs’ (CRF 3E), ‘Field burning of agricultural 
residues’ (CRF 3F), ‘Liming’ (CRF 3G), ‘Urea application’ (CRF 3H), ‘Other carbon 
containing fertilisers’ (CRF 3I) and ‘Other agricultural emissions’ (CRF 3J). 

Historical developments, trends and projections 

In 2023, agriculture emissions represented nearly 13% of the EU’s overall GHG emissions 
(18% of the ESR emissions), of which two third from livestock (50% enteric fermentation, 
17% manure management) and the rest from land, including fertilizers. Since 2005, the 
pace of emissions reduction has visibly slowed down. Between 2005 and 2023, emissions 
from agriculture declined by 7%, with a higher decrease in manure management (12%). 
Improved efficiency and sustainability measures have been developed. However, a 
significant increase in agricultural production drove overall emission levels (see below). 
Nevertheless, emission intensity – that is, in the level of GHGs emitted per unit of product – 
continue to decline. Key drivers include the adoption of precision farming technologies, 
better manure and fertilizer management, and shifts in livestock feeding practices that 
reduce methane emissions. For instance, between 2000 and 2019, the level of enteric 

72 

 
fermentation per litre of milk produced declined by 17% due to changes in dairy cattle 
management practices 50. However, increases in milk production have counterbalanced 
the positive effects that these practices have had on overall emission levels. Without the 
changes in dairy cattle management practices, emissions would have risen alongside 
production 51. 

Figure 37: Emissions in agriculture (1990-2023) and projections (2024-2050) 

Note: Based on 2025 GHG inventories and 2025 GHG projections submitted by Member States. The estimated 
contribution to the EU 2030 EU target is based on the modelling outcomes of the core policy scenario supporting the Fit-
for-55 initiatives. 

The latest GHG projections from Member States indicate that when considering both 
existing and additional measures agriculture emissions are expected to be around 340 
MtCO2-eq by 2030 (-13% compared to 2005) in line with the expected emissions from the 
model-based results supporting the delivering of the European Green Deal. The difference 
between the two projection scenarios, i.e. with only existing and with additional measures, 
is minor (around 10 MtCO2-eq). This could reflect fewer planned policy interventions in this 
area or a reduced impact of the planned additional policies on emissions. Looking forward, 
continued efforts are essential to maintain progress and ensure the sector contributes 
effectively to the climate-neutrality goal. 

Compared to 2005 level, emissions in agriculture significantly fell in Croatia (30%), while 
sizeable increases were reported in Estonia (26%), Bulgaria (20%) and Latvia (19%). Over 
the same period, emissions have also increased in Ireland (4%), the country with the 
highest share of agriculture emissions on total GHG emissions. 

50 Progress and prospects for decarbonisation in the agriculture sector and beyond — European Environment Agency 
51 ETC_CME_Eionet report 2021_Agriculture_PaMs analysis 20220510.pdf 

73 

 
 
 
Figure 38: Changes in GHG emissions from the agriculture sector by Member State (2005-2023) 

Main drivers 

Due to limitations in data availability, the decomposition analysis was performed between 
2010-2019. Over this period, GHG emissions in agricultural have remained rather stable. 
An increased use of fertilizer contributed to higher emissions despite a slight improvement 
in the emission intensity of the used fertiliser, due to a shift in the chemical composition 
used. In the livestock sector, the expansion of agricultural area for cattle as well as the 
increased density of cattle by utilised area, went hand in hand with a sizeable reduction of 
bovine meat consumption per capita. It could signal both a change in the Europeans’ diet 
(e.g. less red meat) and a change in the trade patterns, with more European meat going to 
external market. The overall land used for agriculture has slightly decreased despite the 
expansion of land for cattle. This can be interpreted as a structural shift in agriculture as 
food markets globalise and regions specialise. 

74 

 
 
Figure 39: Decomposition of emission in agriculture (2010-2019) 

Fertilizer 

Livestock 

Decomposition factors 

𝐺𝐻𝐺𝑙𝑖𝑣𝑒𝑠𝑡𝑜𝑐𝑘 = 𝐺𝐻𝐺𝑒𝑛𝑡𝑒𝑟𝑖𝑐𝑓𝑒𝑟𝑚𝑒𝑛𝑡𝑎𝑡𝑖𝑜𝑛 + 𝐺𝐻𝐺𝑚𝑎𝑛𝑢𝑟𝑒 = 𝑃𝑂𝑃 ∗

𝐺𝐻𝐺𝑓𝑒𝑟𝑡𝑖𝑙𝑖𝑧𝑒𝑟 = 𝑈𝐴𝐴 ∗

𝐺𝐻𝐺𝑎𝑔𝑟𝑖 = 𝐺𝐻𝐺𝑓𝑒𝑟𝑡𝑖𝑙𝑖𝑧𝑒𝑟 + 𝐺𝐻𝐺𝑙𝑖𝑣𝑒𝑠𝑡𝑜𝑐𝑘 
𝐺𝐻𝐺𝑓𝑒𝑟𝑡𝑖𝑙𝑖𝑧𝑒𝑟
𝐹𝑈𝑇
𝐵𝑀𝐶
𝑃𝑂𝑃

𝐹𝑈𝑇
𝑈𝐴𝐴

∗

∗

𝑈𝐴𝐴𝑏
𝐵𝑀𝐶

∗

𝐿𝑆𝑈
𝑈𝐴𝐴𝑏

∗

𝐺𝐻𝐺𝑙𝑖𝑣𝑒𝑠𝑡𝑜𝑐𝑘
𝐿𝑆𝑈

Fertilizer 

Livestock 

UAA – Total utilized agricultural area 
FUT/UAA – Nitrogen fertiliser use per area 
GHG_fert/FUT – Emission intensity of fertilizer use 

UAA – Total utilized agricultural area 
FUT – Fertilizer Use Total 
GHG_fert – GHG emissions related to fertilizer use 

POP – Population 
BMC/POP – Bovine meat consumed per capita 
UAA_b/BMC – Utilized agricultural area for cattle per 
bovine meat consumed 
LSU/UAA_b – Livestock units per utilized agricultural 
area for cattle 
GHG_b/LSU – Emission intensity of livestock 

POP – Population 
BMC – Bovine Meat Consumption 
UAA_b – Utilised Agricultural Area for bovines (cattle) 
LSU – Livestock Units 
GHG_livestock – GHG emissions related to livestock (enteric fermentation and 
manure) 

Policies and measures 

While EU-wide frameworks – such as the Common Agricultural Policy (CAP) and the Effort 
Sharing Regulation – provide essential direction and coordination, the role of national 
policies is pivotal in translating climate goals into tailored, context-specific actions. As 

75 

                                                                              
 
 
  
 
 
 
 
 
 
such, national strategies must not only align with EU-level commitments but also reflect 
domestic agricultural structures, practices, and environmental conditions to effectively 
and fairly reduce emissions while sustaining the sector’s vitality. 

A recent study by the European Evaluation Helpdesk 52 establishes, for the first time, a link 
between CAP Strategic Plans (CSP) instruments, such as good agricultural and 
environmental conditions (GAECs) and CAP interventions and their climate change 
mitigation potential, across the EU Member States. Its methodology relies on data from the 
CSPs of the 2023-2027 CAP programming period, estimates of expected uptake levels, and 
on average emission and removal coefficients for farming practices, enhancing carbon 
removals and conserving existing carbon stocks. 

The study finds that the CSPs have the potential to contribute positively to GHG emission 
reduction and enhanced removals, with an estimated 35 MtCO₂-eq per year on average 
over the 2023-2027 period. In terms of farming practices, crop rotation or diversification, 
expansion of cover crops, and conversion to organic farming account for 74% of the 
estimated mitigation potential. 

In 2025, in reporting on progress of national climate and energy plans, EU Member States 
reported more than 380 policies and measures targeting emissions in agriculture (around 
11% of all single policies and measures), 18% more than 2023 reporting cycle. 

Around 30% of agriculture policies and measures are directed to livestock, by supporting 
targeted breeding and using feed additives to reduce enteric methane emissions (14%) but 
also improving manure management systems and promoting anaerobic digestion ‘biogas’ 
(16%). Another 18% of policies and measures aim at reducing fertilizer and manure use on 
cropland, such as measures to reduced or ban the use of mineral fertilisers, to promote 
the use of slurry additives to reduce methane emissions, to use of low emission-spreading 
equipment, or introducing organic fertilisers. Relatively few Member States reported 
measures to reduce livestock number, support permanent conversion of arable land to 
grassland or wetland, or encourage dietary change. 

The EU Carbon Removals and Carbon Farming (CRCF) 53 Regulation creates the first EU-
wide voluntary framework for certifying carbon removals, carbon farming and carbon 
storage in products across Europe. It aims to support farmers’ adoption of more 
sustainable agricultural practices, providing them with additional complementary income. 
Carbon farming involves practices that enhance carbon sequestration and storage in 
forests and soils, or that reduce greenhouse gas emissions from soils, such as rewetting 
and restoring peatlands and wetlands, agroforestry, soil protection measures like catch 

52 Rough estimate of the climate change mitigation potential of the CAP Strategic Plans (EU-27) over the 2023-2027 
period 
53 https://eur-lex.europa.eu/eli/reg/2024/3012/oj/eng 

76 

 
 
crops, cover crops, conservation tillage, and hedgerows, reforestation and improving 
fertiliser use efficiency. 

Figure 40: a) Number of single policies and measures related to agriculture by status of implementation b) and by 
main objective  

(a) 

(b) 

Notes: Data on policies and measures are based on a preliminary dataset of 2025 NECP progress reports (Annex IX). 
Due to a delay in the submission, data for Belgium refer to the 2023 NECP progress reports. Member States can indicate 
more than one objective for the same policy and measure. In brackets, the EU PaM’s totals. Order of country in figure 
(b) is aligned to the share of policies and measures targeting reduction in the use of chemical fertilizers. Some of 
policies and measures have an impact also on LULUCF emissions rather than on agricultural emissions. 

Data on policy impact on emission reductions was available for around 22% of policies 
and measures targeting agriculture-related emissions. This highlights a major gap in how 
Member States evaluate the effectiveness of their climate policies. As a result, Table 18 
presents only an illustrative list of measures with reported impacts. Policies lacking impact 
data cannot be meaningfully assessed. 

Table 18: Illustrative list of polices and measures affecting agriculture emissions 

Country 

Name of policy 
or measure 

Description 

Start 
year 

Type of 
instrument 

Related EU 
policy 

Emissions 
reductions 
in 2030 
(KtCO2eq) 

% of total 
agriculture 
emissions 
in 2005 

Slovakia 

Feed Additives  

This measure entails 
complementing the diet of 
cattle and sheep with 3-
Nitrooxypropanol as a feed 
additive. 

2035 

Economic; 
Regulatory 

Common 
Agricultural 
Policy 

743 

29% 

77 

 
 
 
 
Finland 

Mineral soil 
carbon increase 
activities 

Greece 

Establishing 
common rules 
for direct 
support schemes  

Bulgaria 

Crop rotations 

Slovakia 

Switch to 
organic 
fertilisers 

Ireland 

Feed additives 

Estonia 

Eco-scheme for 
organic farming 

Latvia 

Promote 
inclusion of 
leguminous 
plants in crop 
rotation for 
nitrogen fixation 

Austria 

Livestock and 
feeding 
management 

The target is to increase the 
amount of carbon in mineral 
soils. Measures are 
implemented through CAP.  
The reduction of the rate of 
intensity of agricultural land 
use and the adoption of rules 
for the obligatory observance 
of cross compliance system 
relating to manure 
management contribute to 
the reduction of GHGs. 
The introduction of 
sustainable crop rotation that 
includes vegetation cover in 
winter and leguminous crops 
(legumes, soya, lucerne, 
clover) will protect soils from 
erosion and maintain organic 
carbon sequestration, which 
is a potential means of 
reducing greenhouse gas 
emissions. 
This measure focuses on 
switching from inorganic to 
organic fertilisers (compost, 
manure, sewage sludge) 
To promote the incorporation 
of feed additives in cattle 
diets as a measure to reduce 
methane emissions. 
The support is granted to 
farmers who start conversion 
to organic farming and 
engage in organic farming, 
and support is granted on the 
basis of the area of their 
agricultural land under 
organic farming 
The main aim of the measure 
is to expand arable land and 
increase number of farms 
were leguminous plants are 
included in crop rotation thus 
contributing to atmospheric 
nitrogen fixation and 
reduction of application of 
inorganic nitrogen fertilizers. 
Optimized feeding with 
respect to enteric emissions 
and emissions from manure 
by using methane-reducing 
feed additives for cattle as 
well as the implementation 
of N-reduced feeding 
strategies for cattle and 
swine. 

2014 

Economic; 
Information; 
Research 

Common 
Agricultural 
Policy 

737 

12% 

2007 

Planning; 
Regulatory; 
Economic 

Effort 
Sharing 
Decision; 
Common 
Agricultural 
Policy 

800 

9% 

2013 

Information; 
Planning; 
Regulatory 

Effort 
Sharing 
Regulation 

394 

8% 

2024 

Economic; 
Regulatory 

2024 

Voluntary. 
Education 

2023 

Economic; 
Regulatory 

Common 
Agricultural 
Policy 

Common 
Agricultural 
Policy 

Effort 
Sharing 
Regulation; 
Common 
Agricultural 
Policy 

186 

7% 

1190 

6% 

27 

2% 

2023 

Economic; 
Voluntary 

Not related 

40 

2% 

2024 

Economic; 
Education; 
Information; 
Voluntary 

Common 
Agricultural 
Policy 

90 

1% 

78 

 
 
 
 
 
 
 
 
 
Challenges and opportunities 

The agricultural sector presents both opportunities and challenges for reducing 
greenhouse gas (GHG) emissions. One significant opportunity lies in the adoption of 
technical mitigation measures. These include enhancing nitrogen efficiency, optimising 
livestock practices such as feeding and breeding, and investing in infrastructure like low-
emission stables and biogas plants for manure digestion. Additionally, the use of additives 
to reduce methane and nitrous oxide emissions is seen as a promising option. By 
embracing these innovative approaches, farmers can not only contribute to a more 
sustainable future but also improve their bottom line through increased efficiency and 
reduced energy costs 54. 

However, there are also significant challenges to be addressed in reducing emissions from 
agriculture. One major hurdle is the need for significant investment in new technologies 
and infrastructure, which can be a barrier for smaller-scale farmers. Moreover, the 
complexity of agricultural systems and the variability of local conditions mean that there is 
no one-size-fits-all solution, and approaches will need to be tailored to specific farm types 
and regions. Despite these challenges, many farmers are already taking steps to reduce 
their environmental impact, and with the right support and incentives, it is possible to 
unlock the full potential of the agriculture sector to contribute to a low-carbon future. 

To overcome these challenges and realise the opportunities for emissions reduction, it will 
be essential to provide farmers with the necessary support and resources. Additionally, 
research and development will be crucial to identify and scale up the most effective 
solutions, and to address the specific challenges faced by different types of farms and 
farming systems. 

54 Progress and prospects for decarbonisation in the agriculture sector and beyond. EEA Briefing no. 17/2022.  

79 

 
 
 
 
5  The EU’s 2030 NDC under the UNFCCC 

The European Union released its first Biennial Transparency Report (BTR) at COP29, ahead 
of the 31 December 2024 deadline. This first BTR shows that the EU is making good 
progress towards its NDC target with net greenhouse gas emissions in the EU in 2022 down 
by 31.8% since 1990. 

This first BTR is the first report under the EU’s nationally determined contribution under the 
Paris Agreement which was updated in 2023 and raised the EU and its Member States 
ambition to a greenhouse gas emissions reduction target of at least 55% by 2030 
compared with 1990 levels. 

As mentioned above the European Union has established legally binding climate 
objectives through two primary instruments: the European Climate Law (Regulation (EU) 
2021/1119) and its Nationally Determined Contribution (NDC) under the Paris Agreement. 
While both aim for climate neutrality, their legal scopes differ significantly and defines their 
respective emissions scope in slightly different ways - particularly for aviation and 
maritime transport. These differences matter when we track progress. As the EU climate 
target, this target is to be achieved domestically (i.e. within the EU), without the use of 
international credits. 

The submission of BTRs is a significant milestone in the implementation of the Paris 
Agreement, which marks the beginning of a new era of accountability and collaboration in 
the global fight against climate change, as outlined under the Enhanced Transparency 
Framework of the Paris Agreement. 

The Enhanced Transparency Framework (ETF), adopted under the Paris Agreement, aims at 
building mutual trust and confidence and at promoting the effective implementation of the 
Agreement. It builds on the transparency arrangements under the United Nations 
Convention on Climate Change (UNFCCC), and its purpose is to provide a clear 
understanding of climate change action and of support provided and received. Information 
reported under the Enhanced Transparency Framework is of particular importance for the 
Global Stocktake, which periodically takes stock of the implementation of the Paris 
Agreement. The modalities, procedures and guidelines (MPGs) for the Enhanced 
Transparency Framework, adopted in decision 18/CMA.1 in 2018, specify the information 
which is to be provided by Parties in their Biennial Transparency Reports (BTRs). They also 
provide the rules for the technical expert review of this information and for the Facilitative, 
Multilateral Consideration of Progress (FMCP). Further details on the reporting of this 
information, including the outline of the BTR and tables for electronic reporting, were 
adopted in decision 5/CMA.3 in 2021. Tables for electronic reporting include Common 
Reporting Tables (CRT) for greenhouse gas inventory information and Common Tabular 
Formats (CTF). The latter are used for the reporting of information necessary to track 
progress in implementing and achieving Nationally Determined Contributions (NDCs), and 

80 

 
information on support to developing countries. The first Biennial Transparency Report, 
including CRT and CTF tables was submitted using the new UNFCCC ETF report tools. 

The Governance Regulation article 29 paragraph 5(a) lays down the provisions to track 
progress and policy response to ensure Union targets achievement. This includes 
monitoring whether the Union and its Member States have made sufficient progress 
towards meeting their commitment taken under the Paris Agreement, towards their NDC. 

This BTR provides essential information on the progress made in implementing the EU 
legislation, and an assessment of the effects of the major EU policies and measures, 
projected emissions and the need for further policy development. The BTR also details the 
support and capacity building that the EU provides to developing countries, and in 
addition, it describes the EU’s work to assess climate risks and our preparedness for 
climate impacts. 

The National Inventory Report is a key component of the BTR, as it is the EU’s indicator for 
tracking progress towards the NDC. The MPGs specify that this report may be submitted as 
a stand-alone report or as a component of the BTR. They also specify that the National 
Inventory Report (NIR) consists of a National Inventory Document (NID) and of the CRT. The 
outline for the National Inventory Documents is defined in decision 5/CMA.3, and it is 
similar to the outline for National Inventory Reports which are submitted by Parties listed in 
Annex I to the Convention. The EU will continue submitting its National Inventory 
Document as a standalone report, thus producing separate reports. The EU’s first NID 
under the Paris Agreement was submitted as a standalone document in December 2024 
and reported a 32.6% fall compared to 1990. 

In February 2025 a team of independent technical expert reviewers (TERT) conducted a 
technical review of the EU BTR and NID. 

The TERT conducted a technical expert review of the information reported in the EU first 
BTR as per the scope of the review defined in paragraph 146 of the MPGs. Their aim was to 
assess: 

the accuracy and transparency of the information reported; 

• 
•  whether it aligned with the UNFCCC modalities, procedures and guidelines (MPGs); 
•  progress made toward the EU’s NDC; 
•  and the support provided. 

The TERT considered that based on the 2023 inventory data, around an 18 per cent 
reduction from the 2023 level is needed to achieve its 2030 NDC target in seven years. The 
TERT concluded that the EU is currently on track to achieving its 2030 NDC target by 
implementing mitigation actions but may face challenges keeping on track given the 
uncertainty as to whether the current pace of emission reductions can be maintained. 

81 

 
The EU has also agreed to submit its NDC, ahead of COP30, with an indicative 2035 target 
between 66.25%. and 72.5% reduction in net GHG emissions compared to 1990 levels. The 
EU is looking towards the submission of its second BTR in 2026. 

82 

 
 
 
6  Report on the quality of petrol and diesel fuel used for road 

transport in the EU (reporting year 2023) 

6.1 Introduction 

Pursuant to Article 7a of Directive 98/70/EC 55 relating to the quality of petrol and diesel 
fuels (the ‘Fuel Quality Directive’) and Article 5 of Council Directive (EU) 2015/652 laying 
down calculation methods and reporting requirements pursuant to Directive 98/70/EC 56, 
Member States are required to report annually on the GHG intensity of fuels and energy 
supplied in their territories. This reporting obligation applied for the first time for the 2017 
reporting year, following the application and transposition of Council Directive (EU) 
2015/652. The recent amendment of the Renewable Energy Directive 57, deleted Article 7a 
of the Fuel Quality Directive as from 20 November 2023 and repealed Council Directive 
(EU) 2015/652 as of 1 January 2025. However, pursuant to Article 4 of the amending 
directive, which sets out transitional provisions, Member States were still required to 
collect and report the data in accordance with Article 7a of the Fuel Quality Directive for 
the year 2023, which is reflected by this annual report. 

Furthermore and, pursuant to Article 8(3) of the Fuel Quality Directive, Member States are 
required to report on national fuel quality data for the preceding calendar year. 

This annual report summarises the information provided by Member States in relation to 
the above-mentioned reporting requirements. It is based on the data submitted by Member 
States to the European Environment Agency (EEA) for the year 2023. 

6.2 Volumes and life cycle greenhouse gas intensity of fuel and energy 
types 

Article 7a of the Fuel Quality Directive, in conjunction with Council Directive (EU) 
2015/652, set out reporting requirements concerning the following: 

• 

the total volume of each type of fuel or energy supplied for road transport and non-
road mobile machinery (including inland waterway vessels when not at sea), 
agricultural and forestry tractors, and recreational craft when not at sea; 

55 Directive 98/70/EC of the European Parliament and of the Council relating to the quality of petrol and diesel fuels and 
amending Council Directive 93/12/EEC, OJ L 350 of 28.12.1998, p. 58. 
56 Council Directive (EU) 2015/652 of 20 April 2015 laying down calculation methods and reporting requirements pursuant 
to Directive 98/70/EC of the European Parliament and of the Council relating to the quality of petrol and diesel fuels, OJ L 
107 of 25.4.2015, p. 26. 
57 Directive (EU) 2023/2413 of the European Parliament and of the Council of 18 October 2023 amending Directive 
(EU) 2018/2001, Regulation (EU) 2018/1999 and Directive 98/70/EC as regards the promotion of energy from renewable 
sources, and repealing Council Directive (EU) 2015/652. 

83 

 
 
• 

• 

the life-cycle GHG emissions per unit of energy, including the provisional mean 
values of the estimated indirect land use change (ILUC) emissions from biofuels 58; 
the feedstock and the biofuel production pathway used for each of the biofuels 
supplied on the territories of Member States. 

Until the relevant articles are removed, the Fuel Quality Directive obliges Member States to 
require fuel suppliers to reduce the life-cycle GHG intensity of transport fuels, i.e., the life-
cycle GHG emissions per unit of energy from fuel and energy supplied, by a minimum of 
6% compared with the fuel baseline standard for 2010 of 94.1 gCO2eq/MJ. ILUC GHG 
emissions are not taken into account when assessing compliance with the minimum 6% 
reduction target. The Renewable Energy Directive (EU) 2018/2001 59 sets out several 
measures to address ILUC including a cap on food- and feed-based biofuels. Its delegated 
act 60 sets out detailed criteria for determining high ILUC-risk feedstock for biofuels that are 
to be gradually phased out by 2030 and the criteria for certifying low ILUC-risk biofuels, 
bioliquids and biomass fuels. 

In 2023, all 27 Member States, UK (in respect of Northern Ireland 61), Iceland and Norway 
provided data on GHG emission reductions in the appropriate format. The comparisons 
between aggregated figures refer to the EU-27 for all reference years. 

Greenhouse gas emissions and distance to 2020 target 

According to the data provided, the average GHG intensity of the fuels and energy supplied 
in the 27 reporting Member States in 2023 was 88 gCO2eq/MJ, which translates into a 
saving of 69 MtCO2-eq during the year 2023. This is 6.3% lower than the 2010 baseline of 
94.1 gCO2eq/MJ reaching on average the 2020 target of 6% for the first time. 

Reported data for 2023 shows that the progress achieved by EU fuel suppliers varies 
greatly across the EU Member States. 12 Member States (Sweden, Finland, Germany, 
Estonia, Netherlands, Belgium,  Hungary, Czechia, Denmark, Slovakia, Malta and Cyprus) 
have achieved their objective of reducing the GHG intensity of transport fuels by 6% 
compared with 2010 (see Figure 41). The largest progress within a year was achieved by 

58 Directive (EU) 2015/1513 of the European Parliament and of the Council of 9 September 2015 amending Directive 
98/70/EC relating to the quality of petrol and diesel fuels and amending Directive 2009/28/EC on the promotion of the use 
of energy from renewable sources, OJ L239 of 15.9.2015, p. 8. 
59 Directive (EU) 2018/2001 of the European Parliament and of the Council of 11 December 2018 on the promotion of the 
use of energy from renewable sources, OJ L 328, 21.12.2018, p. 82–209 
60 Commission Delegated Regulation (EU) 2019/807 of 13 March 2019 supplementing Directive (EU) 2018/2001 of the 
European Parliament and of the Council as regards the determination of high indirect land-use change-risk feedstock for 
which a significant expansion of the production area into land with high carbon stock is observed and the certification of 
low indirect land-use change-risk biofuels, bioliquids and biomass fuels, OJ L 133, 21.5.2019, p. 1–7 
61 Following the end of the transition period, Council Directive (EU) 2015/652 setting out relevant reporting obligations no 
longer applies to the UK as whole. However, pursuant to Article 5(4) read in conjunction with Annex 2, point 47 of the 
Protocol on Ireland/Northern Ireland to the Withdrawal Agreement, Council Directive (EU) 2015/652 continues to apply to 
and in the UK in respect of Northern Ireland (https://eur-lex.europa.eu/legal-
content/EN/TXT/PDF/?uri=CELEX:12020W/TXT). 

84 

 
 
Hungary with 3.3 percentage points increases between 2022 and 2023, against the 2010 
baseline, followed by Spain with 2.4 percentage point. Further information can be found in 
the EEA report on GHG intensities of transport fuels in the EU in 2023 62. 

Figure 41: Reductions in GHG intensity of fuels achieved by EU fuel suppliers in Member States in 2010-2022 and 
2010-2023 

Source: EEA 

Furthermore, in 2023, upstream emission reductions (UERs) 63 were reported by 14 
Member States (Austria, Cyprus, Czechia, Denmark, Estonia, Germany, Hungary, Italy, 
Luxembourg, Malta, Poland, Romania, Slovakia and Slovenia), which contributed between 
0.2 and 3.1 percentage points to the overall GHG emission reduction achievement. 
Consequently, the total reported UERs were 5 889 kt CO2eq in 2023, resulting in an 
additional reduction in the fuel GHG intensity by 0.6 percentage points from 5.7% to 6.3%. 
UERs claimed by suppliers have to be quantified and reported in accordance with the 
requirements set out in Council Directive (EU) 2015/652. 

When ILUC emissions are taken into account 64, the average GHG intensity of the fuels in 
the EU in 2023 was 4.8% lower than in 2010. According to Article 7d of the Fuel Quality 

62 Technical Report No 2025/02: https://www.eionet.europa.eu/etcs/etc-cm/products/etc-cm-report-2025-02  
63 ‘Upstream emissions’ means all greenhouse gas emissions occurring prior to the raw material entering a refinery or a 
processing plant where the fuel is produced. 
64 For this calculation, the provisional estimated indirect land-use change emissions from biofuels were taken into 
account as listed in Annex V of the Fuel Quality Directive. 

85 

 
 
 
Directive, which lays down the method of calculation of life cycle GHG emissions from 
biofuels, ILUC emissions are not to be taken into account when assessing compliance with 
the minimum 6% reduction target. 

Further action will be necessary in order to decarbonise the fuel used in transport and to 
contribute to the increased climate ambition, as set out in the European Green Deal and 
the legislative proposals adopted as part of the ‘Fit-For-55’ legislative package of 14 July 
2021. The amended Renewable Energy Directive substantially increases the overall 
ambition of decarbonising transport fuels and energy carriers. Member States will have to 
reduce their GHG intensity by at least 14.5% compared with the 2010 baseline or will need 
at least a 29% share of renewable energy within the final consumption of energy in the 
transport sector by 2030. In addition, the ReFuelEU Aviation and FuelEU Maritime 
Regulations will boost the production and uptake of sustainable alternative fuels in the 
aviation and maritime sectors. 

Fuel supply 

This section summarises the data submitted by Member States on all fossil fuels, biofuels 
and fuels of non-biological origin within the scope of the Fuel Quality Directive for road 
transport and non-road mobile machinery. 

Total fuel supply reported by the 27 Member States in 2023 was 11 726 petajoules (PJ), 
representing a slight increase of 5% compared with 2022. The fuel supply remained 
dominated by fossil fuels (93%) followed by biofuels (7%) and a very minor share (0.1%) of 
electricity (see Section 5.2.4). No renewable fuels of non-biological origin were reported in 
2023. 

Fossil fuel supply remained dominated in 2023 by diesel (53.2%; 6 239PJ), followed by 
petrol (24.7%; 2 892 PJ) and gas oil 65 (12.8%; 1 497 PJ). Liquefied petroleum gas and 
natural gas had a combined share of 2.3 % (273 PJ) (Figure 42) 

65 ‘Gas oil’ denotes fuel as per definitions in Article 2 (2) and (3) of the Fuel Quality Directive. 

86 

 
 
Figure 42: Fuel energy supply shares per fuel type in 2023 (Source: EEA) 

Biofuel consumption 

Total biofuel consumption increased slightly from 742 PJ to 824 PJ between 2022 and 2023 
in the 27 Member States. It remains dominated by biodiesel (fatty acid methyl ester, 
FAME), which accounts for 57.5% of total biofuel consumption (474 PJ), followed by 
hydrotreated vegetable oil (HVO) (18.0%; 149 PJ), and bioethanol (15.8% ; 131 PJ). Bio-ethyl 
tert-butyl ether (bio-ETBE) accounted for 1.1% (9 PJ) and biogas for 2.4% (19 PJ) of the total 
biofuel consumption. The other biofuels collectively accounted for 5.0% (42 PJ) (see Figure 
43). This means that almost 80% of all biofuels are blended into diesel fuel. Detailed 
information for all biofuels and pathways can be found in the EEA Technical Report No 
2024/04. 

87 

 
 
Figure 43: Biofuel energy supply shares per fuel type in 2023 (Source: EEA) 

Electricity consumption 

The reporting of electricity consumption by fuel suppliers is voluntary. 21 Member States 
(compared to 19 in 2022) reported data on electricity consumed by electric vehicles, 
including motorcycles (see Table 19). The total reported quantity of electricity consumed 
by electric vehicles increased by approximatelly 60% from 10 829 451 GJ in 2022 to 
17 691 407 (excluding powertrain efficiency adjustment). The actual electricity 
consumption of electric vehicles in the different Member States may be greater because 
reporting of electricity was compulsory under Article 7a and some Member States did not 
report it, even thogh it would help them achieve the 6% target. 

Table 19: Electricity consumed by electric vehicles and motorcycles in 2023 as a reported contribution by fuel 
suppliers to their GHG reduction target 

Quantity of energy 

GHG intensity 

Member State 

excluding 
powertrain 
efficiency (GJ) 

including 
powertrain 
efficiency (GJ) 

reported by 
Member State 
(g CO2e/MJ) 

reported by 
Member State 
(g CO2e/kWh) 

Belgium 

Bulgaria 

Czechia 

Denmark 

Germany 

Estonia 

Ireland 

58 517 

163 256 

20 793 

69 776 

9 320 

187 601 

822 040 

23 407 

65 302 

8 317 

27 910 

3 728 

75 040 

328 816 

88 

74 

142.3 

177 

45 

135 

114.5 

100.3 

266.4 

512.1 

637.2 

162 

486 

412 

361.1 

 
 
Greece 

Spain 

France 

Italy 

Luxembourg 

Hungary 

Netherlands 

Austria 

Poland 

Portugal 

Romania 

Slovenia 

Slovakia 

Sweden 

Total 

9 669 

345 438 

8 170 963 

511 453 

4 733 

49 083 

5 900 000 

897 831 

7 

323 972 

5 451 

11 005 

42 673 

87 828 

3 867 

138 175 

3 268 385 

204 581 

1 893 

19 633 

2 360 000 

359 132 

3 

129 589 

2 180 

4 402 

17 069 

35 131 

17 691 407 

7 076 563 

116.7 

82 

16.1 

110.3 

50 

61 

93.5 

18.9 

182.1 

56.4 

58.2 

0 

46.4 

7.2 

- 

420 

295.2 

58 

397 

180 

219.6 

336.6 

68 

655.6 

203 

209.6 

0 

167 

26 

- 

Note: Croatia, Cyprus, Latvia, Lithuania, Malta and Finland do not report data 
Source: EEA 

6.3 Overview of the EU’s 2023 fuel quality data 

In accordance withe Article 8 of the Fuel Quality Directive, all 27 Member States, Iceland; 
Norway and the United Kingdom (in respect of Northern Ireland) submitted reports on 
national fuel quality data for 2023. 

This section provides the data for petrol and diesel sales, and the biocomponents included 
therein, for road transport reported by the 27 EU Member States. It excludes other fossil 
fuels, other biofuels and fuels of non-biological origin, and fuels used for non-road mobile 
machinery. More detailed information on fuel quality can be found in EEA Technical Report 
No 2024/02 on Fuel quality monitoring in the EU in 2023 66. 

Petrol and diesel 

The share of diesel remained stable between 2017 and 2023, representing 69.8% of total 
sales in 2023. The total amount of diesel sold in 2023 decreased by 3.9 percentage points 
when compared with 2022. In parallel, petrol sales in 2023 increased by 4.2 percentage 
points when compared with 2022 (see Table 20). 

66  Technical Report No 2025/01: https://www.eionet.europa.eu/etcs/etc-cm/products/etc-cm-report-2025-01  

89 

 
 
 
 
Table 20: Diesel and petrol fuel sales for the EU-27 (in ml litres and their respective shares) in 2017/2023 

Fuel 

2017 

2018 

2019 

2020 

2021 

2022 

2023 

Diesel fuel 
sales 

Petrol fuel 
sales 
Total 
(diesel and 
petrol)  

235 388 
(73.3%) 

85 911 
(26.7%) 

241 653 
(73.3%) 

87 994 
(26.7%) 

246 865 
(73.0%) 

90 917 
(27.0%) 

217 395 
(73.2%) 

79 659 
(26.8%) 

231 224 
(72.6%) 

87 385 
(27.4%) 

233 348 
(71.5%) 

92 921 
(28.5%) 

224 313 
(69.8%) 

96 832 
(30.2%) 

321 299 

329 629   337 782 

297 054 

318 609 

326 269 

321 145 

Diesel fuel consumption is dominant in all EU Member States, except in the Netherlands, 
Greece and Cyprus where the proportion of petrol use is between 47% and 55%. Those 
Member States have therefore a relatively high petrol consumption (45% to 53%). By 
contrast, the corresponding petrol shares in Lithuania, Bulgaria, and Latvia, range from 
20%, 19%, to 15% respectively. 

There were no significant changes in the distribution of petrol sales in terms of petrol grade 
research octane numbers (RON) between 2022 and 2023. Most petrol sales in 2023 
involved fuels with a petrol grade of RON 95 while the share of RON ≥ 98 sales slightly 
increased. Small changes were made in the reporting template where category 95 < RON < 
98 was removed to harmonise reporting and remove some potential inconsistencies (see 
Table 21). 

Table 21: Share of petrol sales in the EU-27 according to RON numbers 

 Petrol grade 

2017 

2018 

2019 

2020 

2021 

2022 

2023 

RON 95 

84.30%  80.00%  77.80%  79.30%  80.50%  95.10%  94.98% 

95 < RON < 98 

8.50%  14.90%  16.70%  14.30%  13.10% 

- 

- 

RON ≥ 98 

RON = 91 

6.90% 

4.90% 

5.40% 

6.40% 

6.40% 

4.90% 

5.01% 

0.20% 

0.20% 

0.10% 

0.01% 

0.03% 

0.01% 

0.01% 

Biocomponents content  

In 2023, almost all petrol and diesel sold in the EU was marketed as containing 
biocomponents. 58.8% of all petrol sold, contained up to 5% ethanol content by volume 

90 

 
(E5), while 40.3% contained up to 10% ethanol content (E10); 0.9% of petrol contained 
more than 10% ethanol (E+ 67). 

Almost all diesel fuel sold in 2023 contained biocomponents. 99.8% of diesel fuel 
contained up to 7% FAME (B7) and 0.2% contained more than 7% (B+) 68 (See Table 22). 

Table 22: Use of biocomponents in petrol and diesel fuels sold in the EU-27 in 2017-2023 

Fuel type 

2017 

2018 

2019 

2020 

2021 

2022 

2023 

E0 

E5 

14.50% 

4.90% 

0.70% 

0.00% 

0.00% 

0.00% 

0.00% 

66.70%  81.50%  73.30%  65.70%  65.40%  61.50%  58.80% 

E10 

18.60%  13.40%  25.70%  33.30%  34.20%  37.60%  40.30% 

l

o
r
t
e
P

E+ 

B0 

B7 

B+ 

0.10% 

0.20% 

0.40% 

1.00% 

0.40% 

0.90% 

0.90% 

0.00% 

0.00% 

0.00% 

0.00% 

0.00% 

0.00% 

0.00% 

81.80%  99.20%  99.10%  86.20%  99.80%  99.80%  99.80% 

16.20% 

0.80% 

0.80%  13.80% 

0.20% 

0.20% 

0.20% 

l

e
s
e
D

i

Note: The sales of E0 and B0 are insignificant and were included into E5 and B7 respectively from 2020. 

Compliance of sold fuels with quality limits 

A high compliance with the fuel quality limits is observed in the EU as a whole. A very large 
majority of key fuel parameters in the samples taken in 2023 were reported as being within 
the tolerance limits. 

10 Member States (Croatia, Hungary, Ireland, Lithuania, Luxembourg, Malta, Netherlands, 
Romania, Slovenia and Sweden) verified and reported full compliance for both petrol and 
diesel fuels. 11 Member States verified and reported full compliance for petrol (Bulgaria, 
Croatia, Hungary, Ireland, Lithuania, Luxembourg, Malta, Netherlands, Romania, Slovenia 
and Sweden), and 22 for diesel (all except Belgium, Bulgaria, Cyprus, France and Italy). 

Member States reported a total of 240 cases of non-compliance for petrol and 62 cases for 
diesel in 2023. For petrol, the most common parameters falling outside the specifications 
were exceedances of the summer vapour pressure (in 13 Member States), RON in 7 
Member States and MON in 5 Member States,. For diesel, the most common parameters 
falling outside the specifications were the sulphur content. the distillation point of 95% 
and the FAME content (in 3 Member States for all parameters). 

67 E+ is petrol fuel with > 10% (% v/v) ethanol content.  
68 B+ is diesel fuel with > 7 % (% v/v) biodiesel content. 

91 

 
 
 
 
All Member States described the actions taken when non-compliant samples were 
identified. These actions included informing the competent authorities, initiating 
investigations, imposing penalties and fines, and resampling. In a small number of cases, 
no action was taken when the non-compliant parameters were found to be very close to 
the tolerance limits. 

There was therefore no need for the Commission to launch any investigation in this area. It 
can be concluded that the fuel quality monitoring system in place ensures that high-quality 
fuels are sold in the EU in accordance with the requirements of the Fuel Quality Directive. 

92 

 
 
7  EU ETS emissions 

The EU ETS applies in all 27 EU Member States plus Iceland, Liechtenstein and Norway, as 
well as to electricity generation plants in Northern Ireland 69. Since January 2020, the EU 
ETS is linked with Switzerland’s emissions trading system (Swiss ETS). 

As of 2024, the sectoral scope of the EU ETS covers GHG emissions from over 12.000 
entities from: 

•  Electricity and heat generation plants and manufacturing installations in Europe. 

•  Aircraft operators flying between airports in the European Economic Area (EEA) and 

from the EEA to Switzerland and to the United Kingdom. 

•  Maritime transport occurring between two EEA ports and when ships are in EEA ports, 
as  well  as  half  of  emissions  from  voyages  to  or  from  EEA  ports  that  start  or  end 
outside the EEA. 

Table 23: Verified emissions data from the EU Emissions Trading System (EU ETS) – from power and industry 
installations (broken down by electricity and heat generation and industrial production) and from aircraft operators 

Year 

2019 

Installations 

1 530 

2020 

1 356 
(1 253 UK 
excl.) 

2021 

2022 

2023 

2024 

1 337 

1 313 

1 096 

1 033 

Year-on-year 
change 

Installations - 
electricity and 
heat generation 

Change year-on-
year 

Installations - 
industrial 
production 

Change year-on-
year 

-9.1% 

-11.4% 

822 

696 
(653 UK excl.) 

-14.7% 

-15.3% 

708 

660 
(601 UK excl.) 

-1.6% 

-6.9% 

-1.4% 
(6.6% UK 
excl.) 

-1.8% 

-16.5% 

-5.7% 

708 

725 

552 

493 

1.6% 
(8.5% UK 
excl.) 

2.4% 

-23.9% 

-10.7% 

629 

589 

544 

540 

-4.7% 
(4.7% UK 
excl.) 

-6.4% 

-7.5% 

-0.8% 

Aircraft operators 

68.2 

25.2 

27.9 

49.5 

54.4 

62.6 

Year-on-year 
change 

+1.0% 

-63.0% 

+30.0% 

+77.0% 

+9.5% 

+15% 

Note: Data extracted from the Union Registry (for installations and aircraft operators) and the Swiss Registry (for aircraft 
operators administered by Switzerland). 

69 Under the Protocol on Ireland/Northern Ireland of the EU-UK Withdrawal Agreement. 

93 

 
 
8  Use of revenues from auctioning of ETS allowances 

Table 24 summarises information from Member States’ annual reports on the use of the EU 
Emission Trading System (ETS) auction revenue. Member States report on the use of ETS 
revenue under the Governance Regulation (Regulation 2018/1999) 70. These reports are 
based on templates and submitted via the e-platform (i.e. Reportnet 3) managed by the 
European Environment Agency 71. In 2025, Member States submitted reports for 2024. 

Under Article 10(3) of the ETS Directive (Directive 2003/87/EC) 72, Member States are 
obliged to use 100% of the revenue collected (or an equivalent financial value) to support 
climate action and energy transformation, except for any revenue that Member States 
spend in aid for electricity-intensive industries for indirect carbon costs. The specific 
purposes are listed in Article 10(3) and include industrial decarbonisation, energy 
transformation, clean tech technologies, adaptation to climate change, decarbonisation of 
the transport sector and actions for just transition. The Commission closely monitors 
compliance with this new obligation to ensure all ETS revenue is truly spent on these 
purposes. 

Where Member States reported having spent revenue in aid for indirect carbon costs, this 
value was deducted from the total revenue to obtain the value of the revenue subject to the 
obligation under the Article 10(3). For details, see Carbon Market Report 2025. 

These reports include a list of details for each funded project or measure, together with its 
description, the amount, the revenue year and the disbursement status. Progress against 
100% target is calculated based on amounts disbursed and the year when the disbursed 
revenues were generated. Revenues can also be reported as committed when the 
spending purpose has been decided but the money has not yet been disbursed. The table 
lists the purposes with the largest amounts disbursed or committed in 2024 (this may 
concern revenues generated in previous years). 

The Commission reporting on the Member States’ use of ETS revenues does not prejudge 
the compliance of the expenditures with Article 10(3). 

70 Regulation (EU) 2018/1999 of 11 December 2018, OJ L 328, 21.12.2018 (consolidated text).  
71 Use of ETS auctioning revenues - Reporting year 2025 – GovReg, Reportnet3, European Environment Agency 
72 Directive 2003/87/EC of 13 October 2003, OJ L 275 25.10.2003 (consolidated text). 

94 

 
 
 
 
Table 24: Revenue generated by EU Member States from the auctioning of ETS allowances in 2023 and 2024 to be 
spent on climate and energy-related purposes (EUR million), the share reported as disbursed (%) and a summary of 
revenue usage and purpuses, per country. 

Austria 

Revenues to be spent 
on the purposes of 
Art. 10(3) (EUR million) 

Total percentage disbursed up to the year 
indicated 

2023 

2024 

435.4 

313.1 

100% 

100% previously 

100% 

Year of 
generation 
of 
revenues 
2023 

2024 

Revenue usage: All of the 2024 revenue to be spent for the purposes of Article 10(3) 
was reported as disbursed. Revenue is not earmarked. The reported equivalent 
financial value spending on climate action and energy transformation is higher than 
the auction revenue. 
Purpose(s) with the largest use of ETS revenue in 2024: 

•  The improvement/extension of the railway infrastructure, including Brenner 

base tunnel, was funded with annuity subsidies as per the Bundesbahngesetz 
(Federal Railway Act) for EUR 1,264.1 million. 

Year of 
generation 
of 
revenues 
2023 

2024 

Belgium 

Revenues to be spent 
on the purposes of 
Art. 10(3) (EUR million) 

541.2 

539.1 

Total percentage disbursed up to the year 
indicated 

2023 

41% 

2024 

41% 

38% 

Revenue usage: 38% of the 2024 revenue to be spent for the purposes of Article 10(3) 
was reported as disbursed and 62% was reported as carried over for future spending 
and reporting. Additionally, EUR 116.3 million of pre-2023 revenue was reported as 
disbursed in 2024 and EUR 11.9 million of pre-2023 revenue was reported as 
committed in 2024. Since 2023, the direct spending of auction revenue is on hold 
pending a legal decision on the division between the regions and the federal 
government. The amount reported as disbursed in 2023 and 2024 comes temporarily 
from the regional general budgets and is to be compensated when the revenue 
currently on hold becomes available. 
Purpose(s) with the largest use of ETS revenue in 2024: 

•  Support for the reduction of fluorinated greenhouse gases, financed via the 

Walloon Air and Climate Agency (AWAC) for EUR 57.2 million. 

•  Within Rénopack, which supports households for energy-efficient, safe, and 

climate-friendly renovations, Fonds du Logement de Wallonie (FLW) provided 
EUR 55.0 million in zero-interest loans. 

95 

 
  
  
•  Société Wallonne du Crédit Social (SWCS) financed the component of 

Rénopack that, when climate-related renovation works were completed, 
converted part of the loan into a grant, with EUR 41.6 million. 

Bulgaria 

Revenues to be spent 
on the purposes of 
Art. 10(3) (EUR million) 

Total percentage disbursed up to the year 
indicated 

2023 

2024 

1,172.2 

826.3 

100% 

100% previously 

100% 

Year of 
generation 
of 
revenues 
2023 

2024 

Revenue usage: All of the 2024 revenue to be spent for the purposes of Article 10(3) 
was reported as disbursed. Almost all 2023 and 2024 revenue is disbursed to the 
Ministry of Energy’s Fund for Security of the Electric Power System (FSES) fund that 
compensates non-domestic end-users for the rise in electricity prices. 
Purpose(s) with the largest use of ETS revenue in 2024: 

•  The (FSES) received EUR 822.2 million. From 2024, the FSES also pays for the 
difference between actual and regulated maximum electricity prices and 
network access fees. 

•  The National Trust Eco Fund (EcoFund) received EUR 4.1 million. In 2024, it 

funded nationwide initiatives to curb air pollution, protect biodiversity, manage 
water, improve public building efficiency, support EV adoption, and boost 
climate resilience. 

Year of 
generation 
of 
revenues 
2023 

2024 

Croatia 

Revenues to be spent 
on the purposes of 
Art. 10(3) (EUR million) 

158.9 

118.3 

Total percentage disbursed up to the year 
indicated 

2023 

0% 

2024 

24% 

0% 

Revenue usage: Of the 2024 revenue to be spent, all revenue is carried over, indicated 
to be spent by the end of 2025. EUR 38.0 million of 2023 revenue was reported as 
disbursed in 2024 and EUR 41.7 million of 2023 revenue was reported as committed in 
2024. Additionally, EUR 155.9 million of pre-2023 revenue was reported as disbursed 
in 2024 and EUR 136.3 million of pre-2023 revenue was reported as committed in 
2024. According to national law, 100% of the auctioning revenues are spent on 
climate and energy purposes via the Environmental Protection and Energy Efficiency 
Fund (EPEEF). 
Purpose(s) with the largest use of ETS revenue in 2024: 

•  Subsidies on final consumer gas prices were funded by EPEEF with EUR 172.0 

million. 

96 

 
  
  
•  Buildings energy renovation was financed by EPEEF with EUR 76.8 million. 
•  Adaptation activities were supported by EPEEF with EUR 33.3 million. 

Year of 
generation 
of 
revenues 
2023 

2024 

Cyprus 

Revenues to be spent 
on the purposes of 
Art. 10(3) (EUR million) 

113.6 

95.5 

Total percentage disbursed up to the year 
indicated 

2023 

91% 

2024 

91% 

99% 

Revenue usage: 99% of the 2024 revenue to be spent for the purposes of Article 10(3) 
was reported as disbursed and 1% was reported as carried over for future spending 
and reporting. 
Purpose(s) with the largest use of ETS revenue in 2024: 

•  The Administration of the Ministry of Energy, Commerce and Industry granted 
EUR 42.0 million in emergency income support to citizens to offset electricity 
tariff increases. 

•  The Department of Road Transport, Ministry of Transport, Communications 

and Works provided EUR 19.4 million for public passenger transport. 

•  The Department of Forestry of the Ministry of Agriculture, Rural Development & 
Environment provided EUR 10.2 million to hire of aircraft and maritime means 
of transport for firefighting support and coordination. 

Year of 
generation 
of 
revenues 
2023 

2024 

Czechia 

Revenues to be spent 
on the purposes of 
Art. 10(3) (EUR million) 

777.2 

605.0 

Total percentage disbursed up to the year 
indicated 

2023 

26% 

2024 

30% 

96% 

Revenue usage: Czechia reported spending EUR 58.0 million from its 2024 auction 
revenue to compensate for indirect carbon costs. This amount was deducted from 
Czechia’s total revenue to calculate the amount to be spent on the purposes of Article 
10(3). Of the 2024 Article 10(3) amount, 96% was reported as disbursed and the 
remaining 4% is indicated to be disbursed in the next years within the New Green 
Savings Programme. Regarding revenue generated in 2023, EUR 29.6 million of 2023 
revenue was reported as disbursed in 2024. Czechia mentioned the legislative 
process to enshrine additional spending for the purpose of Art. 10(3) in national law 
was completed in 2024. 

97 

 
  
  
Purpose(s) with the largest use of ETS revenue in 2024: 

•  The Ministry of Transportation provided EUR 131.9 million for the 

modernisation of railway junctions and stations. 

•  EUR 128.8 million was provided by the Ministry of Transportation for the 

modernisation and optimisation of railways. 

•  The Ministry of Agriculture provided EUR 76.9 million for water management, 

specifically for peatland protection and restoration, and ecosystem protection 
and restoration. 

Denmark 

Total percentage disbursed up to the year 
indicated 

Year of 
generation 
of 
revenues 
2023 

2024 

Revenues to be spent 
on the purposes of 
Art. 10(3) (EUR million) 

2023 

2024 

416.1 

298.8 

100% 

100% previously 

100% 

Revenue usage: All of the 2024 revenue to be spent for the purposes of Article 10(3) 
was reported as disbursed. Revenues are not earmarked. Projects for Art. 10(3) 
purposes with equivalent financial value have been reported. 
Purpose(s) with the largest use of ETS revenue in 2024: 

•  The Danish Energy Agency funded offshore wind grants worth EUR 120.3 

million. 

•  The Energy Technology Development and Demonstration Programme (EUDP) 

funded green energy technology demonstrations, for EUR 80.6 million. 
•  The Danish Energy Agency provided EUR 73.1 million for grants aimed at 

upgrading and purifying biogas. 

Year of 
generation 
of 
revenues 
2023 

2024 

Estonia 

Revenues to be spent 
on the purposes of 
Art. 10(3) (EUR million) 

360.0 

254.6 

Total percentage disbursed up to the year 
indicated 

2023 

2% 

2024 

9% 

8% 

Revenue usage: 8% of the 2024 revenue to be spent for the purposes of Article 10(3) 
was reported as disbursed and 92% as committed. Regarding revenue generated in 
2023, EUR 24.2 million of 2023 revenue was reported as disbursed in 2024. 
Additionally, EUR 74.0 million of pre-2023 revenue was reported as disbursed in 2024. 
Up to 2023, 50% of the auctioning revenue was earmarked and directed through the 
four-year State Budget Strategy and spent on Art. 10(3) purposes, which may take 
multiple years. Unspent revenues are carried over to later years and always used for 

98 

 
  
  
climate and energy projects. The remaining 50% went to the general budget. From 
2024 onwards, 100% of revenues are earmarked for Art 10(3) purposes. 
Purpose(s) with the largest use of ETS revenue in 2024: 

•  The Ministry of Climate co-financed the Rail Baltic project (new high-speed rail 
network) to promote sustainable transport, with a budget of EUR 136.4 million. 

•  The Ministry of Finance and Ministry of Regional Affairs granted EUR 61.8 
million for works to increase energy efficiency, emission reduction, 
maintenance cost and renewable energy use in public sector buildings. 
•  The Ministry of Regional Affairs and Agriculture and Ministry of Climate 

invested EUR 22.4 million to support public transport investments: local 
government low-emission public transport investments (for example: school 
busses, trains, electric barges) by open calls. 

Finland 

Revenues to be spent 
on the purposes of 
Art. 10(3) (EUR million) 

Total percentage disbursed up to the year 
indicated 

2023 

2024 

463.9 

417.9 

100% 

100% previously 

100% 

Year of 
generation 
of 
revenues 
2023 

2024 

Revenue usage: All of the 2024 revenue to be spent for the purposes of Article 10(3) 
was reported as disbursed. Revenues are not earmarked. Equivalent spending on 
slightly more than the revenues to be spent on the purposes of Art. 10(3) were 
reported for 2024. 
Purpose(s) with the largest use of ETS revenue in 2024: 

•  Aid for production of renewable energy was funded with EUR 123.6 million. 
•  Energy Aid was allocated EUR 87.4 million for the development of renewable 

energies to meet the EU’s commitment. 

•  Development of Public Transport received EUR 86.4 million for the 
development and purchase of public transportation services. 

France 

Total percentage disbursed up to the year 
indicated 

Year of 
generation 
of 
revenues 
2023 

2024 

Revenues to be spent 
on the purposes of 
Art. 10(3) (EUR million) 

2023 

2024 

2,100.2 

700.0 

100% 

100% previously 

100% 

Revenue usage: France reported spending EUR 833.8 million from its 2024 auction 
revenue to compensate for indirect carbon costs. This amount was deducted from 
France’s total revenue to calculate the amount to be spent on the purposes of Article 
10(3). This whole amount was reported as disbursed. The auctioning revenues co-

99 

 
  
  
fund energy efficiency improvements of low-income housing, up to a ceiling of EUR 
700 million per year. This year, the remainder was reported as aid to compensate for 
indirect carbon costs. 
Purpose(s) with the largest use of ETS revenue in 2024: 

•  The ANAH (Agence Nationale pour l'Amélioration de l'Habitat) implemented 
MaPrimeRénov, providing EUR 700.0 million in grants for energy efficiency 
improvements in low-income housing units. 

Germany 

Revenues to be spent 
on the purposes of 
Art. 10(3) (EUR million) 

Total percentage disbursed up to the year 
indicated 

2023 

2024 

7,645.5 

5,205.0 

100% 

100% previously 

100% 

Year of 
generation 
of 
revenues 
2023 

2024 

Revenue usage: Germany reported total amounts spent on different purposes, that 
were partly funded form auction revenue. Assuming all purposes have the same share 
of revenue funding, Germany spent EUR 323.7 million from its 2024 auction revenue 
to compensate for indirect carbon costs. This amount was deducted from Germany’s 
total revenue to calculate the amount to be spent on the purposes of Article 10(3).  
This whole amount was reported as disbursed. 
Purpose(s) with the largest use of ETS revenue in 2024: 

•  The “Zuschüsse zur Entlastung beim Strompreis” are electricity price relief 

subsidies costing EUR 18,488.9 million, designed to offset grid fees, levies, and 
taxes and thus lower electricity bills for households, businesses, and network 
operators. 

•  The "Förderung von Maßnahmen der Energieeffizienz und erneuerbarer 

Energien im Gebäudebereich" action funded measures for energy efficiency 
and renewable energies in the building sector, costing EUR 14,116.8 million. 
•  The "Wasserstoffeinsatz in der Industrieproduktion" action funded hydrogen 
projects for decarbonizing industrial production, particularly steel and 
chemistry, as part of the "IPCEI Wasserstoff" initiative, costing EUR 921.3 
million. 

Year of 
generation 
of 
revenues 
2023 

2024 

Greece 

Revenues to be spent 
on the purposes of 
Art. 10(3) (EUR million) 

1,208.9 

820.2 

Total percentage disbursed up to the year 
indicated 

2024 

99% 

100% 

2023 

99% 

100 

 
  
  
Revenue usage: Greece reported spending EUR 272.4 million from its 2024 auction 
revenue to compensate for indirect carbon costs. This amount was deducted from 
Greece’s total revenue to calculate the amount to be spent on the purposes of Article 
10(3). This whole amount was reported as disbursed. 
Purpose(s) with the largest use of ETS revenue in 2024: 

•  The Energy Transition Fund (ETF) provided a state subsidy to lower electricity 
costs, funded via DAPEEP (Operator of Electricity Market) with EUR 455.6 
million. 

•  The Special Account for RES (Renewable Energy Sources) supported 

renewable energy feed-in schemes, managed by DAPEEP with EUR 103.6 
million. 

•  The Green Fund financed projects for the natural environment and forests with 

EUR 66.2 million. 

Hungary 

Year of 
generation 
of 
revenues 
2023 

2024 

Revenues to be spent 
on the purposes of 
Art. 10(3) (EUR million) 

438.9 

584.6 

Total percentage disbursed up to the year 
indicated 

2023 

30% 

2024 

39% 

20% 

Revenue usage: 20% of the 2024 revenue to be spent for the purposes of Article 10(3) 
was reported as disbursed, 6% as committed and the remaining 74% of 2024 
revenues has been indicated to be spent in the following years. EUR 36.7 million of 
2023 revenue was reported as disbursed in 2024 and EUR 3.9 million of 2023 revenue 
was reported as committed in 2024. Additionally, EUR 4.7 million of pre-2023 revenue 
was reported as disbursed in 2024 and EUR 12.4 million of pre-2023 revenue was 
reported as committed in 2024. Revenues are earmarked for Art. 10(3) purposes. Any 
revenues not spent are carried over to future years. 
Purpose(s) with the largest use of ETS revenue in 2024: 

•  Funded with EUR 75.9 million, the Napenergia Plusz Programme’s residential 

• 

photovoltaic and battery storage grants were implemented by the International 
Development and Resource Coordination Agency (NFFKÜ). 
Installation of District Heating Smart Meters programme, funded with EUR 30.9 
million and implemented by the Independent Energy Data Centre (FEAK). 
•  EUR 22.8 million in support was provided to MÁV Hungarian State Railways to 
offset the increased cost of rail freight transportation resulting from high 
energy prices. 

Ireland 

Total percentage disbursed up to the year 
indicated 

101 

 
  
Year of 
generation 
of 
revenues 
2023 

2024 

Revenues to be spent 
on the purposes of 
Art. 10(3) (EUR million) 

2023 

2024 

158.3 

138.8 

100% 

100% previously 

100% 

Revenue usage: All of the 2024 revenue to be spent for the purposes of Article 10(3) 
was reported as disbursed. Revenues are not earmarked for specific purposes. The 
amounts reported are equivalent to 100% of these revenues and are allocated to 
emission reduction activities in line with the purposes specified in Art 10(3). 
Purpose(s) with the largest use of ETS revenue in 2024: 

•  The Department of Transport invested EUR 102.3 million in public transport. 
•  The Department of Foreign Affairs allocated EUR 34.1 million for international 

climate funding. 

•  The Environmental Protection Agency (EPA) used EUR 2.4 million for EU ETS 

administration costs. 

Italy 

Year of 
generation 
of 
revenues 
2023 

2024 

Revenues to be spent 
on the purposes of 
Art. 10(3) (EUR million) 

3,396.8 

2,403.5 

Total percentage disbursed up to the year 
indicated 

2023 

0% 

2024 

0% 

0% 

Revenue usage: Italy reported spending EUR 600.0 million from its 2024 auction 
revenue to compensate for indirect carbon costs. This amount was deducted from 
Italy’s total revenue for the purpose of calculating the amount it must spend on the 
purposes of Article 10(3). All 2024 revenue was reported as carried over for future 
spending and reporting. Additionally, EUR 42.4 million of pre-2023 revenue was 
reported as disbursed in 2024 and EUR 52.0 million of pre-2023 revenue was reported 
as committed in 2024. Following the Italian financial rules, committing or disbursing 
2024 auction revenues will start in 2025. 
Purpose(s) with the largest use of ETS revenue in 2024: 

•  EUR 37.2 million for the development of hydrogen production projects in 

abandoned industrial areas in Basilicata, Piemonte, Puglia, Umbria and Friuli 
Venezia Giulia, implemented by the Ministry for the Environment and Regional 
Authorities.  

•  EUR 24.7 million for energy efficiency in public administration buildings: 

Energy Requalification Programme of the Central Public Administration. This 
programme promotes energy efficiency to meet energy-saving targets under 
Article 8 of EU Directive 2023/1791 (EED III). 

102 

 
  
  
 
•  Agreement between Ministry of Environment and Carabinieri provided EUR 6.9 

million for purchasing low environmental impact vehicles. 

Latvia 

Total percentage disbursed up to the year 
indicated 

Year of 
generation 
of 
revenues 
2023 

2024 

Revenues to be spent 
on the purposes of 
Art. 10(3) (EUR million) 

90.8 

64.5 

2023 

30% 

2024 

56% 

6% 

Revenue usage: 6% of the 2024 revenue to be spent for the purposes of Article 10(3) 
was reported as disbursed and 94% as committed. EUR 23.5 million of 2023 revenue 
was reported as disbursed in 2024. 100% of revenues go to the Emission Allowances 
Auctioning Instrument (EAAI), a national green investment scheme aimed at tackling 
global climate change. 
Purpose(s) with the largest use of ETS revenue in 2024: 

•  Open tender to support the reduction of emissions in households through 

renewable energy, funded under the EAAI, with EUR 60.4 million. 

•  The EAAI funded an open tender to reduce greenhouse gas emissions and 

improve energy efficiency in buildings of the Ministry of the Interior’s system 
institutions and municipal police institutions (EUR 20.0 million). 

•  An open tender funded by the EAAI promoted the reduction of greenhouse gas 
emissions through the introduction of electric and plug-in vehicles in Latvia 
(EUR 9.0 million). 

Lithuania 

Total percentage disbursed up to the year 
indicated 

Year of 
generation 
of 
revenues 
2023 

2024 

Revenues to be spent 
on the purposes of 
Art. 10(3) (EUR million) 

113.7 

87.0 

2023 

61% 

2024 

61% 

12% 

Revenue usage: 12% of the 2024 revenue to be spent for the purposes of Article 10(3) 
was reported as disbursed and 88% as committed. Additionally, EUR 3.5 million of 
pre-2023 revenue was reported as disbursed in 2024. Revenues fund the four-year 
(2022-2025) Climate Change Programme. Funds are committed when funding 
applications are accepted, payments are made after the projects are implemented. 
Purpose(s) with the largest use of ETS revenue in 2024: 

•  The EPMA (European Project Management Agency) funded the modernisation 

of internal heating and hot water systems in apartment buildings with EUR 22.0 
million. 

103 

 
 
  
  
•  The EPMA allocated EUR 20.1 million for the modernisation of single-family or 
two-apartment residential buildings to achieve energy performance class B 
and reduce heat consumption by 40%. 

•  The EPMA disbursed EUR 14.7 million for the use of Renewable Energy Sources 

(solar/wind for electricity generation) in public buildings. 

Luxembourg 

Total percentage disbursed up to the year 
indicated 

Year of 
generation 
of 
revenues 
2023 

2024 

Revenues to be spent 
on the purposes of 
Art. 10(3) (EUR million) 

2023 

2024 

9.3 

5.1 

100% 

100% previously 

100% 

Revenue usage: All of the 2024 revenue to be spent for the purposes of Article 10(3) 
was reported as disbursed. Auction revenues, together with the climate contribution 
on road fuels and 40% of the annual motor vehicle tax, fund the Climate and Energy 
Fund. An equivalent amount of Article 10(3) actions from this fund are reported. 
Purpose(s) with the largest use of ETS revenue in 2024: 

•  The EUR 5.1 million is allocated to Climate and Energy Fund, without further 
description of its activities. The fund’s 2024 activities included grants for 
energy-efficient building renovations, eco-driving training incentives, and 
bicycle and electric-vehicle purchase support. 

Malta 

Total percentage disbursed up to the year 
indicated 

Year of 
generation 
of 
revenues 
2023 

2024 

Revenues to be spent 
on the purposes of 
Art. 10(3) (EUR million) 

2023 

2024 

44.6 

44.2 

100% 

100% previously 

100% 

Revenue usage: All of the 2024 revenue to be spent for the purposes of Article 10(3) 
was reported as disbursed. Revenues are not earmarked. 
Purpose(s) with the largest use of ETS revenue in 2024: 

•  The Ministry for Transport, Infrastructure and Public Works funded Malta 

Transport Incentive Programme Electric Vehicle Grants (MTIP EV Grants) with 
EUR 22.0 million, providing purchase and scrappage subsidies to accelerate 
electric vehicle adoption. 

•  EUR 20.3 million for Malta’s scheme administered by the Regulator for Energy 
and Water Services (ARMS), offering guaranteed fixed rates to small-scale 
renewable electricity producers—such as solar, biogas, and hydro, for grid 
injection. 

104 

 
  
  
•  ARMS Malta also funded the Eco-reduction scheme which provides electricity 
tariff discounts to incentivize energy efficiency and reward the lowest-emitting 
consumers, with EUR 7.8 million. 

Netherlands 

Total percentage disbursed up to the year 
indicated 

Year of 
generation 
of 
revenues 
2023 

2024 

Revenues to be spent 
on the purposes of 
Art. 10(3) (EUR million) 

2023 

2024 

1,281.4 

927.8 

100% 

100% previously 

100% 

Revenue usage: All of the 2024 revenue to be spent for the purposes of Article 10(3) 
was reported as disbursed. Revenues are not earmarked. Equivalent spending has 
been reported as part of the spending several large climate policies. 
Purpose(s) with the largest use of ETS revenue in 2024: 

•  The Netherlands Enterprise Agency (RVO) funded the “incentive for 
sustainable energy production” (SDE) with EUR 865.8 million. 

•  Funded with EUR 648.0 million by the RVO, the SDE+ action explicitly supports 
CO₂-reducing technologies, such as CCUS and hydrogen, rewarding greater 
emissions savings per euro. 

•  Allocated EUR 460.5 million by the RVO, the Investeringssubsidie Duurzame 
Energie (ISDE) provides investment grants to households and businesses for 
installing sustainable energy technologies such as heat pumps, biomass 
boilers, and solar panels. 

Poland 

Total percentage disbursed up to the year 
indicated 

Year of 
generation 
of 
revenues 
2023 

2024 

Revenues to be spent 
on the purposes of 
Art. 10(3) (EUR million) 

4,988.1 

3,192.6 

2023 

92% 

2024 

92% 

94% 

Revenue usage: Poland reported spending EUR 614.7 million from its 2024 auction 
revenue to compensate for indirect carbon costs. This amount was deducted from 
Poland’s total revenue to calculate the amount to be spent on the purposes of Article 
10(3). Of the 2024 Article 10(3) amount, 94% was reported as disbursed and the 
remaining 6% was indicated that it will be included in next year's report. Revenues are 
not earmarked. The equivalent financial value of actions for the purposes in Art. 10(3) 
haven been reported. 
Purpose(s) with the largest use of ETS revenue in 2024: 

105 

 
  
  
•  The government Programme for supporting railway infrastructure 

management, maintenance and repairs until 2028, funded by the Ministry of 
Infrastructure (Ministerstwo Infrastruktury), received EUR 893.9 million. 

•  The co-financing of interregional and international railway passenger transport 
in the form of state budget subsidies, managed by the Ministry of Finance 
(Ministerstwo Finansów), was allocated EUR 437.8 million. 

•  The support by applying a reduced VAT rate for bus and train tickets, also 
managed by the Ministry of Finance, was funded with EUR 373.9 million. 

Year of 
generation 
of 
revenues 
2023 

2024 

Portugal 

Revenues to be spent 
on the purposes of 
Art. 10(3) (EUR million) 

720.0 

510.2 

Total percentage disbursed up to the year 
indicated 

2023 

96% 

2024 

97% 

100% 

Revenue usage: Portugal reported spending EUR 25.0 million from its 2024 auction 
revenue to compensate for indirect carbon costs. This amount was deducted from 
Portugal’s total revenue to calculate the amount to be spent on the purposes of 
Article 10(3). This whole amount was reported as disbursed. EUR 0.9 million of 2023 
revenue was reported as disbursed in 2024. All revenue is channelled to the 
Environment Fund (alongside other revenues) which finances environmental projects, 
a portion of which support climate objectives. The amounts reported as spent 
represent climate and energy projects funded by the Environmental Fund. 
Purpose(s) with the largest use of ETS revenue in 2024: 

•  The National Energy System (SEN) programme prepares the network, 

introduces competitive tenders, and supports renewable energy integration 
with EUR 311.1 million in funding. 

•  The expansion of the Oporto metro network was funded with EUR 66.6 million. 
•  The transition to a circular economy was promoted through the collection of 

biowaste, funded with EUR 27.0 million. 

Romania 

Revenues to be spent 
on the purposes of 
Art. 10(3) (EUR million) 

Total percentage disbursed up to the year 
indicated 

2023 

2024 

435.9 

519.0 

100% 

100% previously 

100% 

Year of 
generation 
of 
revenues 
2023 

2024 

Revenue usage: Romania reported spending EUR 116.8 million from its 2024 auction 
revenue to compensate for indirect carbon costs. This amount was deducted from 
Romania’s total revenue to calculate the amount to be spent on the purposes of 

106 

 
  
  
Article 10(3). This whole amount was reported as disbursed. Distribution of auction 
revenues to different purposes is regulated by law GEO 115/2011. 
Purpose(s) with the largest use of ETS revenue in 2024: 

•  EUR 276.1 million was allocated for the installation of photovoltaic panels for 

electricity production and storage. 

•  EUR 161.9 million was invested in the promotion of non-polluting and energy-
efficient road transport vehicles, specifically new electric or hybrid vehicles. 
•  EUR 102.2 million was invested in high efficiency LED (Light Emitting Diode) 

lighting sources in public street lighting. 

Year of 
generation 
of 
revenues 
2023 

2024 

Slovakia 

Revenues to be spent 
on the purposes of 
Art. 10(3) (EUR million) 

298.0 

233.5 

Total percentage disbursed up to the year 
indicated 

2023 

31% 

2024 

31% 

37% 

Revenue usage: Slovakia reported spending EUR 58.3 million from its 2024 auction 
revenue to compensate for indirect carbon costs. This amount was deducted from 
Slovakia’s total revenue to calculate the amount to be spent on the purposes of 
Article 10(3). Of the 2024 Article 10(3) amount, 37% was reported as disbursed, 61% 
as committed and 2% was reported as carried over for future spending and reporting. 
Purpose(s) with the largest use of ETS revenue in 2024: 

•  Programme for water pipes and sewers, including the construction of water 

retention measures (EUR 102.4 million). 

•  Programme to increase of energy efficiency in existing public buildings 

including insulation (EUR 51.9 million). 

•  Programme to support increased carbon sequestration efforts in forest soil 

and biomass, alongside the protection of designated natural areas (EUR 37.6 
million). 

Year of 
generation 
of 
revenues 
2023 

2024 

Slovenia 

Revenues to be spent 
on the purposes of 
Art. 10(3) (EUR million) 

161.1 

108.0 

Total percentage disbursed up to the year 
indicated 

2023 

79% 

2024 

100% 

87% 

Revenue usage: Slovenia reported spending EUR 25.4 million from its 2024 auction 
revenue to compensate for indirect carbon costs. This amount was deducted from 
Slovenia’s total revenue to calculate the amount to be spent on the purposes of 
Article 10(3). Of the 2024 Article 10(3) amount, 87% was reported as disbursed and 

107 

 
  
  
13% as committed. EUR 33.1 million of 2023 revenue was reported as disbursed in 
2024. All of the auctioning revenues are used for purposes in Article 10(3), 
coordinated through the Climate Change Fund. 
Purpose(s) with the largest use of ETS revenue in 2024: 

• 

Investments in thermal insulation of buildings and replacement of boilers (EUR 
48.5 million). 

•  Construction of solar and hydroelectric power plants to promote renewable 

• 

energy sources (EUR 36.4 million). 
Investments in rail transport and cycle paths to promote alternative sources of 
transport (EUR 24.6 million). 

Spain 

Total percentage disbursed up to the year 
indicated 

Year of 
generation 
of 
revenues 
2023 

2024 

Revenues to be spent 
on the purposes of 
Art. 10(3) (EUR million) 

3,355.5 

2,331.4 

2023 

33% 

2024 

33% 

48% 

Revenue usage: Spain reported spending EUR 244.0 million from its 2024 auction 
revenue to compensate for indirect carbon costs. This amount was deducted from 
Spain’s total revenue to calculate the amount to be spent on the purposes of Article 
10(3). Of the 2024 Article 10(3) amount, 48% was reported as disbursed and 52% was 
reported as carried over for future spending and reporting. Estimated revenues are 
earmarked for climate and energy purposes ahead of each year, so actual revenues 
may differ from the allocated estimate. All estimated revenues that do not go to 
indirect cost compensation (excluded in the values above) are used for climate and 
energy purposes. 
Purpose(s) with the largest use of ETS revenue in 2024: 

•  Funding of EUR 1,100.0 million was allocated as per the Electricity Sector Law 

for feed-in tariffs for renewable energy. 

•  The Policy for adaptation to the adverse effects of climate change focused on 
awareness-raising and training for vulnerable populations received EUR 7.5 
million. 

•  A contribution of EUR 5.0 million was made to the ‘Fund for responding to Loss 

and Damage’ (FRLD), the international financial mechanism of the UN 
Framework Convention on Climate Change. 

Sweden 

Total percentage disbursed up to the year 
indicated 

Year of 
generation 
of 
revenues 

Revenues to be spent 
on the purposes of 
Art. 10(3) (EUR million) 

2023 

2024 

108 

 
  
2023 

2024 

323.2 

236.5 

0% 

0% 

100% 

Revenue usage: All of the 2024 revenue to be spent on the purposes of Article 10(3) 
was reported as disbursed. Revenues are not earmarked; example projects have been 
reported for at least the minimum required for Article 10(3). 
Purpose(s) with the largest use of ETS revenue in 2024: 

•  The Swedish Transport Agency administered a climate bonus for low-emission 

vehicles, rewarding first-time licenses, with EUR 106.1 million. 

•  The Swedish EPA (Environmental Protection Agency) introduced The Climate 
Leap, a programme for local and regional investments to cut greenhouse gas 
emissions, valued at EUR 83.9 million. 

•  The Swedish Energy Agency administered the Industrial Leap, a programme for 

financing research and investments to reduce industry's greenhouse gas 
emissions, valued at EUR 46.5 million. 

Note: the data in this table reflect Member States’s annual reports on the use of the ETS revenues submitted under the 
Governance Regulation. It has been processed to ensure consistency across all Member States and over the reporting 
period. The harmonisation, methodology and analysis were conducted by SQ Consult in a study for the European 
Commission. 

109 

 
  
 
9  Emissions covered by the effort sharing legislation 

Annual emission allocations 

In 2024, based on approximated data, emissions from sectors covered by the ESR were 
above the aggregated EU emissions limit by 1.6%. 17 Member States exceeded their 2024 
ESR emission limits based on the approximated data: Austria, Belgium, Bulgaria, Cyprus, 
Germany, Denmark, Estonia, Spain, Finland, France, Croatia, Ireland, Italy, Lithuania, 
Malta, Romania, Sweden. 

The Commission will, as provided in the ESR, set the annual emission limits, expressed in 
annual emission allocations, for the period 2026-2030 based on the comprehensive review 
of the ESR emissions for the years 2021-2023. The comprehensive review includes checks 
of Member States’ national inventory data verifying that Member States' inventory data are 
transparent, accurate, consistent, comparable and complete, and to make corrections 
where necessary. In 2027 the ESR emissions will be comprehensively reviewed again for 
each of the years 2021 to 2025 for the compliance check starting in 2027. 

The Commission will check whether Member States respected and complied with their 
emission limits in two rounds – first in 2027 (for the years 2021 to 2025) and then in 2032 
(for the years 2026 to 2030). During the compliance check Member States can make use of 
the different flexibilities available under the ESR 73. 

73 https://climate.ec.europa.eu/eu-action/effort-sharing-member-states-emission-targets/effort-sharing-
2021-2030-targets-and-flexibilities_en  

110 

 
 
Table 25: Member States targets, historical and projected emissions under the effort-sharing legislation and distance to targets in percentage change from 2005 base year 
emissions 

The 2021-2023 ESR emissions were established in 2025 after a comprehensive review, the 2024 ESR emissions are based on approximated inventory reports, and 2030 ESR emissions 
are based on 2025 reporting. Positive values indicate projected overachievement while negative values indicate projected underachievement. WEM = with existing measures, WAM = 
with additional measures. The 2005 emissions used for the calculation are set out in Annex I of Commission Implementing Decision (EU) 2020/2126. 

The targets, ESR emissions and distance to targets are rounded to the percentage targets which may result in the numbers not adding up visually. The targets in the table reflect 
Member State's emission limits, compared to their 2005 emissions, which takes into account adjustments made to the annual emission allocations for some Member States based on 
Article 10 ESR. 

Member State 

Target and emissions 

2021 

2022 

2023 

2024 

2030  
(projections 
WEM) 

2030  
(projections 
WAM) 

  Belgium 

  Bulgaria 

  Czechia 

Target 

Emissions 

Distance to target (percentage points) 

Target 

Emissions 

Distance to target (pp) 

Target 

Emissions 

Distance to target (pp) 

  Denmark 

Target 

Emissions 

Distance to target (pp) 

  Germany 

Target 

Emissions 

  Estonia 

Distance to target (pp) 

Target 

Emissions 

Distance to target (pp) 

Ireland 

Target 

-15% 

-22% 

7 

13% 

11% 

2 

-6% 

-12% 

5 

-22% 

-22% 

0 

-15% 

-19% 

4 

-3% 

-7% 

4 

-11% 

-13% 

-16% 

3 

21% 

13% 

8 

2% 

-9% 

11 

-20% 

-19% 

-1 

-12% 

-16% 

5 

0% 

-8% 

8 

-9% 

111 

-19% 

-23% 

4 

10% 

7% 

3 

-9% 

-15% 

6 

-26% 

-26% 

0 

-19% 

-21% 

2 

-6% 

-10% 

4 

-15% 

-23% 

-23% 

-1 

7% 

12% 

-5 

-11% 

-11% 

0 

-29% 

-29% 

-1 

-24% 

-23% 

-1 

-8% 

-4% 

-4 

-19% 

-47% 

-22% 

-25 

-10% 

-36% 

26 

-26% 

-28% 

2 

-50% 

-51% 

1 

-50% 

-36% 

-14 

-24% 

-18% 

-6 

-42% 

-47% 

-43% 

-4 

-10% 

-36% 

26 

-26% 

-36% 

10 

-50% 

-51% 

1 

-50% 

-37% 

-13 

-24% 

-18% 

-6 

-42% 

 
 
Member State 

Target and emissions 

2021 

2022 

2023 

2024 

2030  
(projections 
WEM) 

2030  
(projections 
WAM) 

Emissions 

Distance to target (pp) 

Target 

Emissions 

Distance to target (pp) 

Target 

Emissions 

Distance to target (pp) 

Target 

Emissions 

Distance to target (pp) 

Target 

Emissions 

Distance to target (pp) 

  Greece 

  Spain 

  France 

  Croatia 

Italy 

Target 

Emissions 

  Cyprus 

  Latvia 

Distance to target (pp) 

Target 

Emissions 

Distance to target (pp) 

Target 

Emissions 

Distance to target (pp) 

  Lithuania 

Target 

Emissions 

Distance to target (pp) 

-10% 

-5 

-25% 

-27% 

2 

-20% 

-23% 

2 

-22% 

-25% 

3 

-9% 

4% 

-13 

-24% 

-21% 

-3 

-10% 

-4% 

-5 

0% 

-4% 

4 

2% 

1% 

1 

-11% 

-8 

-25% 

-33% 

8 

-23% 

-22% 

-1 

-26% 

-25% 

-1 

-10% 

4% 

-15 

-27% 

-22% 

-5 

-13% 

6% 

-19 

-2% 

-5% 

3 

-1% 

2% 

-3 

-9% 

-33 

-23% 

-43% 

21 

-37% 

-35% 

-2 

-47% 

-37% 

-10 

-17% 

-8% 

-8 

-43% 

-30% 

-13 

-32% 

-4% 

-28 

-17% 

-15% 

-2 

-21% 

-18% 

-3 

-22% 

-20 

-23% 

-43% 

21 

-37% 

-45% 

8 

-47% 

-46% 

-1 

-17% 

-21% 

5 

-43% 

-41% 

-3 

-32% 

-26% 

-6 

-17% 

-18% 

1 

-21% 

-21% 

0 

-7% 

-4 

-25% 

-27% 

2 

-18% 

-20% 

2 

-19% 

-22% 

3 

-8% 

0% 

-8 

-22% 

-19% 

-2 

-7% 

-6% 

-1 

3% 

-2% 

5 

5% 

2% 

3 

-6% 

-3 

-27% 

-29% 

3 

-17% 

-20% 

3 

-16% 

-18% 

2 

-2% 

-4% 

2 

-20% 

-18% 

-2 

-5% 

-7% 

2 

24% 

1% 

23 

23% 

5% 

18 

112 

 
 
Member State 

Target and emissions 

2021 

2022 

2023 

2024 

2030  
(projections 
WEM) 

2030  
(projections 
WAM) 

Target 

  Luxembourg 

Emissions 

Distance to target (pp) 

  Hungary 

Target 

Emissions 

  Malta 

Distance to target (pp) 

Target 

Emissions 

Distance to target (pp) 

Target 

  Netherlands 

Emissions 

  Austria 

  Poland 

Distance to target (pp) 

Target 

Emissions 

Distance to target (pp) 

Target 

Emissions 

Distance to target (pp) 

  Portugal 

Target 

Emissions 

Distance to target (pp) 

  Romania 

Target 

Emissions 

Distance to target (pp) 

  Slovenia 

Target 

Emissions 

-23% 

-32% 

9 

-11% 

-15% 

4 

16% 

42% 

-25 

-27% 

-35% 

7 

-21% 

-22% 

2 

3% 

2% 

2 

-18% 

-18% 

0 

-3% 

-5% 

2 

-9% 

-13% 

-27% 

-33% 

6 

-12% 

-14% 

2 

11% 

41% 

-30 

-30% 

-36% 

6 

-25% 

-25% 

0 

0% 

-5% 

5 

-19% 

-20% 

0 

-4% 

20% 

-24 

-11% 

-12% 

-50% 

-33% 

-17 

-19% 

-15% 

-3 

-19% 

42% 

-61 

-48% 

-44% 

-4 

-48% 

-32% 

-16 

-18% 

-14% 

-3 

-29% 

-30% 

1 

-13% 

-9% 

-4 

-26% 

-9% 

-50% 

-56% 

6 

-19% 

-26% 

8 

-19% 

30% 

-49 

-48% 

-47% 

-1 

-48% 

-40% 

-8 

-18% 

-18% 

1 

-29% 

-40% 

11 

-13% 

-15% 

3 

-26% 

-28% 

-19% 

-30% 

11 

-9% 

-8% 

-1 

21% 

43% 

-22 

-25% 

-34% 

9 

-17% 

-18% 

1 

6% 

2% 

4 

-16% 

-19% 

3 

-2% 

-5% 

3 

-6% 

-9% 

-17% 

-20% 

3 

4% 

-4% 

8 

102% 

30% 

73 

-23% 

-27% 

4 

-14% 

-13% 

-1 

12% 

7% 

4 

-13% 

-19% 

6 

12% 

-2% 

15 

-4% 

-12% 

113 

 
Member State 

Target and emissions 

2021 

2022 

2023 

2024 

2030  
(projections 
WEM) 

2030  
(projections 
WAM) 

Distance to target (pp) 

  Slovakia 

Target 

Emissions 

  Finland 

  Sweden 

  EU-27 

Distance to target (pp) 

Target 

Emissions 

Distance to target (pp) 

Target 

Emissions 

Distance to target (pp) 

Target 

Emissions 

Distance to target (pp) 

Target 

Iceland 

Emissions 

  Norway 

Distance to target (pp) 

Target 

Emissions 

Distance to target (pp) 

9 

1% 

-12% 

13 

-16% 

-20% 

4 

-28% 

-33% 

5 

-12% 

-15% 

3 

-7% 

-7% 

0 

-13% 

-12% 

-1 

3 

-9% 

-15% 

6 

-19% 

-23% 

4 

-29% 

-37% 

8 

-15% 

-18% 

3 

-10% 

-7% 

-3 

-16% 

-12% 

-4 

5 

-10% 

-17% 

6 

-23% 

-26% 

3 

-32% 

-38% 

6 

-18% 

-20% 

2 

-12% 

-10% 

-3 

-19% 

-16% 

-3 

1 

-12% 

-22% 

10 

-27% 

-26% 

0 

-34% 

-29% 

-5 

-21% 

-20% 

-1 

-15% 

-8% 

-7 

-22% 

-18% 

-4 

-17 

-23% 

-14% 

-8 

-50% 

-45% 

-5 

-50% 

-45% 

-5 

-40% 

-31% 

-8 

-29% 

-20% 

-9 

-40% 

-32% 

-8 

2 

-23% 

-26% 

4 

-50% 

-45% 

-5 

-50% 

-45% 

-5 

-40% 

-38% 

-2 

-29% 

-27% 

-2 

-40% 

-49% 

9 

114 

 
 
 
 
 
 
 
 
 
 
 
 
Table 26: Annual emissions allocations, historical and projected emissions, and distance to targets under the 
Effort Sharing Regulation (MtCO2-eq) covering the period 2021 - 2030. Positive values indicate overachievement, 
negative values indicate underachievement 

  Belgium 

Annual emissions allocations, historical and projected emissions, and distance to targets 
under the Effort Sharing Regulation (MtCO2-eq) covering the period 2021 - 2030.  Positive 
values indicate overachievement, negative values indicate underachievement. 

2021 

2022 

2023 

2024 

2025 

2026 

2027 

2028 

2029 

2030 

Estimated AEAs 

71.1 

69.1 

65.9 

62.7 

59.4 

57.1 

53.6 

50.2 

46.7 

43.3 

Emissions 

68.3 

63.2 

62.9 

63.1 

62.7 

59.6 

56.4 

53.2 

50.0 

46.8 

Distance to target 

Cumulative balance of AEAs 

2.8 

2.8 

5.9 

3.0 

-0.4 

-3.3 

-2.5 

-2.8 

-3.0 

-3.3 

-3.6 

8.7 

11.7 

11.3 

8.0 

5.5 

2.7 

-0.3 

-3.6 

-7.2 

Baseline emissions 

81.6 MtCO2-eq 

2005 base year emissions 

ETS 
flexibility 

15.4 MtCO2-eq 

Flexibility 

Maximum 
LULUCF 
flexibility 

3.8 MtCO2-eq 

Amount of ETS flexibility as per Commission Implementing 
Decision 2020/2126 and available over the 10-year period 
2021-2030. 

The availability of LULUCF flexibility depends on the amount 
of LULUCF credits generated under the LULUCF Regulation. 
The use of the available LULUCF flexibility is limited to 50% of 
the maximum amount of LULUCF flexibility in the period 2021-
2025 and 50% of the maximum amount of LULUCF flexibility 
in the period 2026-2030. 

LULUCF debit (2021-2025) 

Pursuant to Art 9(2) ESR, AEAs are reduced by the debit generated under the LULUCF 
Regulation in the period 2021-2025. See Chapter 4 of the main report. 

Note: AEAs for the years 2021-2025 are established in Implementing Decision (EU) 2020/2126. AEAs for the years 2026 -
2030 are estimated based on the trajectory defined in Article 4 ESR and adjusted as provided for under Article 10(1)c ESR. 
To estimate the trajectory for 2026-2030, the estimated ESR emissions for the years 2021 to 2023 are used, after a 
reduction by the Article 10(1)c ESR adjustment included in the AEAs for 2021-2023. The trajectory values are adjusted 
based on Article 10(1)c on the basis of the assumption that the methodology applied to the AEAs for 2021 to 2025 is 
continued unchanged for the years 2026-2030, and no further adjustments for changes to EU ETS are required. The final 
AEAs for these years will be established after the comprehensive review in 2025 pursuant to Article 38(1a) of Regulation 
(EU) 2018/1999. The values of ‘cumulative surplus of AEAs’ are the cumulative annual distances to target and do not take 
into account cancellations and transfers. 2021 and 2022 emissions are based on 2024 final GHG inventory reports, 2023 
emissions are based on 2024 approximated inventory reports. 2024 - 2030 emissions are based on the most recent WAM 
emissions projections reports, or in the absence of WAM projections the WEM projections. First compliance check will 
take place in 2027. 

115 

 
 
 
 
 
  Bulgaria 

Annual emissions allocations, historical and projected emissions, and distance to targets 
under the Effort Sharing Regulation (MtCO2-eq) covering the period 2021 - 2030.  Positive values 
indicate overachievement, negative values indicate underachievement. 

2021 

2022 

2023 

2024 

2025 

2026 

2027 

2028 

2029 

2030 

Estimated AEAs 

27.1 

25.2 

24.5 

23.9 

23.3 

23.0 

22.3 

21.6 

20.8 

20.1 

Emissions 

25.3 

24.7 

24.0 

25.0 

19.7 

18.6 

17.5 

16.5 

15.4 

14.4 

Distance to target 

Cumulative balance of AEAs 

1.8 

1.8 

0.5 

2.3 

0.6 

-1.1 

2.8 

1.7 

3.6 

5.3 

4.4 

4.7 

5.1 

5.4 

5.7 

9.7 

14.5 

19.5 

24.9 

30.6 

Baseline emissions 

22.3 MtCO2-eq 

2005 base year emissions 

ETS 
flexibility 

0.0 MtCO2-eq 

Flexibility 

Maximum 
LULUCF 
flexibility 

4.1 MtCO2-eq 

Amount of ETS flexibility as per Commission Implementing 
Decision 2020/2126 and available over the 10-year period 2021-
2030. 

The availability of LULUCF flexibility depends on the amount of 
LULUCF credits generated under the LULUCF Regulation. The use 
of the available LULUCF flexibility is limited to 50% of the 
maximum amount of LULUCF flexibility in the period 2021-2025 
and 50% of the maximum amount of LULUCF flexibility in the 
period 2026-2030. 

LULUCF debit (2021-2025) 

Pursuant to Art 9(2) ESR, AEAs are reduced by the debit generated under the LULUCF 
Regulation in the period 2021-2025. See Chapter 4 of the main report. 

  Czechia 

Annual emissions allocations, historical and projected emissions, and distance to targets 
under the Effort Sharing Regulation (MtCO2-eq) covering the period 2021 - 2030.  Positive 
values indicate overachievement, negative values indicate underachievement. 

2021 

2022 

2023 

2024 

2025 

2026 

2027 

2028 

2029 

2030 

Estimated AEAs 

66.0 

60.9 

59.3 

57.7 

56.1 

54.0 

52.5 

51.0 

49.6 

48.1 

Emissions 

59.1 

57.5 

55.5 

57.5 

51.3 

49.3 

47.3 

45.3 

43.3 

41.3 

Distance to target 

6.9 

3.4 

3.8 

0.2 

4.7 

4.7 

5.2 

5.7 

6.3 

6.8 

Cumulative balance of AEAs 

6.9 

10.3 

14.1 

14.3 

19.0 

23.7 

28.9 

34.7 

40.9 

47.7 

Baseline emissions 

65.0 MtCO2-eq 

2005 base year emissions 

ETS 
flexibility 

0.0 MtCO2-eq 

Flexibility 

Maximum 
LULUCF 
flexibility 

2.6 MtCO2-eq 

Amount of ETS flexibility as per Commission Implementing 
Decision 2020/2126 and available over the 10-year period 2021-
2030. 

The availability of LULUCF flexibility depends on the amount of 
LULUCF credits generated under the LULUCF Regulation. The 
use of the available LULUCF flexibility is limited to 50% of the 
maximum amount of LULUCF flexibility in the period 2021-2025 
and 50% of the maximum amount of LULUCF flexibility in the 
period 2026-2030. 

LULUCF debit (2021-2025) 

Pursuant to Art 9(2) ESR, AEAs are reduced by the debit generated under the LULUCF 
Regulation in the period 2021-2025. See Chapter 4 of the main report. 

116 

 
 
 
 
 
  Denmark 

Annual emissions allocations, historical and projected emissions, and distance to targets 
under the Effort Sharing Regulation (MtCO2-eq) covering the period 2021 - 2030.  Positive 
values indicate overachievement, negative values indicate underachievement. 

2021 

2022 

2023 

2024 

2025 

2026 

2027 

2028 

2029 

2030 

Estimated AEAs 

32.1 

31.3 

29.9 

28.5 

27.1 

27.3 

25.6 

23.8 

22.0 

20.2 

Emissions 

32.7 

31.4 

29.9 

28.8 

26.7 

25.7 

24.0 

22.4 

21.1 

19.8 

Distance to target 

-0.6 

-0.2 

0.0 

-0.2 

0.5 

Cumulative balance of AEAs 

-0.6 

-0.7 

-0.8 

-1.0 

-0.5 

1.7 

1.1 

1.6 

2.7 

1.4 

4.1 

0.8 

5.0 

0.4 

5.3 

Baseline emissions 

40.4 MtCO2-eq 

2005 base year emissions 

ETS 
flexibility 

4.0 MtCO2-eq 

Flexibility 

Maximum 
LULUCF 
flexibility 

14.6 MtCO2-eq 

Amount of ETS flexibility as per Commission Implementing 
Decision 2020/2126 and available over the 10-year period 
2021-2030. 

The availability of LULUCF flexibility depends on the amount 
of LULUCF credits generated under the LULUCF Regulation. 
The use of the available LULUCF flexibility is limited to 50% of 
the maximum amount of LULUCF flexibility in the period 2021-
2025 and 50% of the maximum amount of LULUCF flexibility 
in the period 2026-2030. 

LULUCF debit (2021-2025) 

Pursuant to Art 9(2) ESR, AEAs are reduced by the debit generated under the LULUCF 
Regulation in the period 2021-2025. See Chapter 4 of the main report. 

  Germany 

Annual emissions allocations, historical and projected emissions, and distance to targets 
under the Effort Sharing Regulation (MtCO2-eq) covering the period 2021 - 2030.  Positive 
values indicate overachievement, negative values indicate underachievement. 

2021 

2022 

2023 

2024 

2025 

2026 

2027 

2028 

2029 

2030 

Estimated AEAs 

427.3 

413.2 

391.9 

370.5 

349.2 

338.8 

314.7 

290.6 

266.5 

242.4 

Emissions 

404.9 

393.1 

380.8 

375.3 

377.6 

363.3 

353.6 

338.0 

318.9 

306.5 

Distance to target 

22.4 

20.2 

11.1 

-4.8 

-28.4 

-24.5 

-38.9 

-47.4 

-52.4 

-64.0 

Cumulative balance of AEAs 

22.4 

42.6 

53.7 

48.9 

20.5 

-4.0 

-42.9 

-90.4 

-142.7 

-206.8 

Baseline emissions 

484.7 MtCO2-eq 

2005 base year emissions 

ETS 
flexibility 

0.0 MtCO2-eq 

Flexibility 

Maximum 
LULUCF 
flexibility 

22.3 MtCO2-eq 

Amount of ETS flexibility as per Commission Implementing 
Decision 2020/2126 and available over the 10-year period 
2021-2030. 

The availability of LULUCF flexibility depends on the amount 
of LULUCF credits generated under the LULUCF Regulation. 
The use of the available LULUCF flexibility is limited to 50% of 
the maximum amount of LULUCF flexibility in the period 2021-
2025 and 50% of the maximum amount of LULUCF flexibility 
in the period 2026-2030. 

LULUCF debit (2021-2025) 

Pursuant to Art 9(2) ESR, AEAs are reduced by the debit generated under the LULUCF 
Regulation in the period 2021-2025. See Chapter 4 of the main report. 

117 

 
 
 
 
 
  Estonia 

Annual emissions allocations, historical and projected emissions, and distance to targets 
under the Effort Sharing Regulation (MtCO2-eq) covering the period 2021 - 2030.  Positive 
values indicate overachievement, negative values indicate underachievement. 

2021 

2022 

2023 

2024 

2025 

2026 

2027 

2028 

2029 

2030 

Estimated AEAs 

Emissions 

Distance to target 

Cumulative balance of AEAs 

6.2 

5.7 

0.5 

0.5 

6.0 

5.7 

0.3 

0.8 

5.8 

5.6 

5.7 

5.9 

0.2 

-0.3 

1.0 

0.8 

5.5 

5.4 

0.1 

0.9 

5.3 

5.3 

5.2 

5.3 

5.0 

5.2 

4.9 

5.2 

4.7 

5.1 

0.0 

-0.1 

-0.2 

-0.3 

-0.4 

0.9 

0.8 

0.6 

0.3 

-0.1 

Baseline emissions 

6.2 MtCO2-eq 

2005 base year emissions 

ETS 
flexibility 

6.9 MtCO2-eq 

Flexibility 

Maximum 
LULUCF 
flexibility 

4.5 MtCO2-eq 

Amount of ETS flexibility as per Commission Implementing 
Decision 2020/2126 and available over the 10-year period 
2021-2030. 

The availability of LULUCF flexibility depends on the amount 
of LULUCF credits generated under the LULUCF Regulation. 
The use of the available LULUCF flexibility is limited to 50% of 
the maximum amount of LULUCF flexibility in the period 2021-
2025 and 50% of the maximum amount of LULUCF flexibility 
in the period 2026-2030. 

LULUCF debit (2021-2025) 

Pursuant to Art 9(2) ESR, AEAs are reduced by the debit generated under the LULUCF 
Regulation in the period 2021-2025. See Chapter 4 of the main report. 

Ireland 

Annual emissions allocations, historical and projected emissions, and distance to targets 
under the Effort Sharing Regulation (MtCO2-eq) covering the period 2021 - 2030.  Positive 
values indicate overachievement, negative values indicate underachievement. 

2021 

2022 

2023 

2024 

2025 

2026 

2027 

2028 

2029 

2030 

Estimated AEAs 

43.5 

42.4 

40.5 

38.7 

36.8 

38.1 

35.5 

32.9 

30.3 

27.7 

Emissions 

44.9 

44.3 

42.7 

42.4 

42.2 

41.3 

40.6 

39.6 

38.5 

37.3 

Distance to target 

-1.4 

-1.9 

-2.2 

-3.7 

-5.4 

-3.2 

-5.1 

-6.7 

-8.2 

-9.7 

Cumulative balance of AEAs 

-1.4 

-3.3 

-5.5 

-9.3 

-14.6 

-17.8 

-22.9 

-29.6 

-37.8 

-47.5 

Baseline emissions 

47.7 MtCO2-eq 

2005 base year emissions 

ETS 
flexibility 

19.1 MtCO2-eq 

Flexibility 

Maximum 
LULUCF 
flexibility 

26.8 MtCO2-eq 

Amount of ETS flexibility as per Commission Implementing 
Decision 2020/2126 and available over the 10-year period 
2021-2030. 

The availability of LULUCF flexibility depends on the amount 
of LULUCF credits generated under the LULUCF Regulation. 
The use of the available LULUCF flexibility is limited to 50% of 
the maximum amount of LULUCF flexibility in the period 2021-
2025 and 50% of the maximum amount of LULUCF flexibility 
in the period 2026-2030. 

LULUCF debit (2021-2025) 

Pursuant to Art 9(2) ESR, AEAs are reduced by the debit generated under the LULUCF 
Regulation in the period 2021-2025. See Chapter 4 of the main report. 

118 

 
 
 
 
  Greece 

Annual emissions allocations, historical and projected emissions, and distance to targets 
under the Effort Sharing Regulation (MtCO2-eq) covering the period 2021 - 2030.  Positive 
values indicate overachievement, negative values indicate underachievement. 

2021 

2022 

2023 

2024 

2025 

2026 

2027 

2028 

2029 

2030 

Estimated AEAs 

46.2 

47.0 

47.2 

47.4 

47.6 

46.6 

47.1 

47.6 

48.2 

48.7 

Emissions 

44.4 

45.8 

46.1 

42.3 

42.7 

41.3 

39.9 

38.5 

37.1 

35.7 

Distance to target 

Cumulative balance of AEAs 

1.8 

1.8 

1.2 

3.0 

1.1 

4.1 

5.1 

4.9 

5.3 

7.2 

9.1 

11.0 

12.9 

9.3 

14.2 

19.5 

26.7 

35.8 

46.8 

59.8 

Baseline emissions 

63.0 MtCO2-eq 

2005 base year emissions 

ETS 
flexibility 

0.0 MtCO2-eq 

Flexibility 

Maximum 
LULUCF 
flexibility 

6.7 MtCO2-eq 

Amount of ETS flexibility as per Commission Implementing 
Decision 2020/2126 and available over the 10-year period 
2021-2030. 

The availability of LULUCF flexibility depends on the amount 
of LULUCF credits generated under the LULUCF Regulation. 
The use of the available LULUCF flexibility is limited to 50% of 
the maximum amount of LULUCF flexibility in the period 2021-
2025 and 50% of the maximum amount of LULUCF flexibility 
in the period 2026-2030. 

LULUCF debit (2021-2025) 

Pursuant to Art 9(2) ESR, AEAs are reduced by the debit generated under the LULUCF 
Regulation in the period 2021-2025. See Chapter 4 of the main report. 

  Spain 

Annual emissions allocations, historical and projected emissions, and distance to targets 
under the Effort Sharing Regulation (MtCO2-eq) covering the period 2021 - 2030.  Positive 
values indicate overachievement, negative values indicate underachievement. 

2021 

2022 

2023 

2024 

2025 

2026 

2027 

2028 

2029 

2030 

Estimated AEAs 

201.0 

198.7 

192.8 

186.9 

181.0 

178.4 

171.7 

165.0 

158.3 

151.7 

Emissions 

194.7 

194.2 

186.9 

188.1 

167.4 

160.3 

153.3 

146.2 

139.2 

132.3 

Distance to target 

6.3 

4.5 

5.9 

-1.2 

13.6 

18.0 

18.4 

18.8 

19.1 

19.4 

Cumulative balance of AEAs 

6.3 

10.8 

16.7 

15.4 

29.1 

47.1 

65.5 

84.3 

103.4 

122.9 

Baseline emissions 

242.0 MtCO2-eq 

2005 base year emissions 

ETS 
flexibility 

0.0 MtCO2-eq 

Flexibility 

Maximum 
LULUCF 
flexibility 

4.9 MtCO2-eq 

Amount of ETS flexibility as per Commission Implementing 
Decision 2020/2126 and available over the 10-year period 
2021-2030. 

The availability of LULUCF flexibility depends on the amount 
of LULUCF credits generated under the LULUCF Regulation. 
The use of the available LULUCF flexibility is limited to 50% of 
the maximum amount of LULUCF flexibility in the period 2021-
2025 and 50% of the maximum amount of LULUCF flexibility 
in the period 2026-2030. 

LULUCF debit (2021-2025) 

Pursuant to Art 9(2) ESR, AEAs are reduced by the debit generated under the LULUCF 
Regulation in the period 2021-2025. See Chapter 4 of the main report. 

119 

 
 
 
 
 
  France 

Annual emissions allocations, historical and projected emissions, and distance to targets 
under the Effort Sharing Regulation (MtCO2-eq) covering the period 2021 - 2030.  Positive 
values indicate overachievement, negative values indicate underachievement. 

2021 

2022 

2023 

2024 

2025 

2026 

2027 

2028 

2029 

2030 

Estimated AEAs 

335.7 

326.5 

312.0 

297.5 

283.0 

277.1 

260.5 

243.9 

227.2 

210.6 

Emissions 

328.4 

313.9 

301.1 

301.4 

277.0 

264.7 

252.4 

240.1 

227.7 

215.4 

Distance to target 

7.3 

12.6 

10.9 

-3.9 

6.0 

12.4 

8.1 

3.8 

-0.5 

-4.8 

Cumulative balance of AEAs 

7.3 

19.9 

30.8 

26.9 

33.0 

45.4 

53.5 

57.3 

56.8 

52.0 

Baseline emissions 

401.1 MtCO2-eq 

2005 base year emissions 

ETS 
flexibility 

0.0 MtCO2-eq 

Flexibility 

Maximum 
LULUCF 
flexibility 

58.2 MtCO2-eq 

Amount of ETS flexibility as per Commission Implementing 
Decision 2020/2126 and available over the 10-year period 
2021-2030. 

The availability of LULUCF flexibility depends on the amount 
of LULUCF credits generated under the LULUCF Regulation. 
The use of the available LULUCF flexibility is limited to 50% of 
the maximum amount of LULUCF flexibility in the period 2021-
2025 and 50% of the maximum amount of LULUCF flexibility 
in the period 2026-2030. 

LULUCF debit (2021-2025) 

Pursuant to Art 9(2) ESR, AEAs are reduced by the debit generated under the LULUCF 
Regulation in the period 2021-2025. See Chapter 4 of the main report. 

  Croatia 

Annual emissions allocations, historical and projected emissions, and distance to targets 
under the Effort Sharing Regulation (MtCO2-eq) covering the period 2021 - 2030.  Positive 
values indicate overachievement, negative values indicate underachievement. 

2021 

2022 

2023 

2024 

2025 

2026 

2027 

2028 

2029 

2030 

Estimated AEAs 

17.7 

16.5 

16.4 

16.2 

16.0 

17.0 

16.5 

16.0 

15.5 

15.0 

Emissions 

17.3 

18.0 

18.8 

18.8 

16.5 

16.0 

15.6 

15.1 

14.7 

14.2 

Distance to target 

0.3 

-1.4 

-2.4 

-2.7 

-0.5 

0.9 

0.9 

0.9 

0.9 

0.8 

Cumulative balance of AEAs 

0.3 

-1.1 

-3.5 

-6.2 

-6.7 

-5.7 

-4.8 

-4.0 

-3.1 

-2.3 

Baseline emissions 

18.1 MtCO2-eq 

2005 base year emissions 

ETS 
flexibility 

0.0 MtCO2-eq 

Flexibility 

Maximum 
LULUCF 
flexibility 

0.9 MtCO2-eq 

Amount of ETS flexibility as per Commission Implementing 
Decision 2020/2126 and available over the 10-year period 
2021-2030. 

The availability of LULUCF flexibility depends on the amount 
of LULUCF credits generated under the LULUCF Regulation. 
The use of the available LULUCF flexibility is limited to 50% of 
the maximum amount of LULUCF flexibility in the period 2021-
2025 and 50% of the maximum amount of LULUCF flexibility 
in the period 2026-2030. 

LULUCF debit (2021-2025) 

Pursuant to Art 9(2) ESR, AEAs are reduced by the debit generated under the LULUCF 
Regulation in the period 2021-2025. See Chapter 4 of the main report. 

120 

 
 
 
 
 
Italy 

Annual emissions allocations, historical and projected emissions, and distance to targets 
under the Effort Sharing Regulation (MtCO2-eq) covering the period 2021 - 2030.  Positive 
values indicate overachievement, negative values indicate underachievement. 

2021 

2022 

2023 

2024 

2025 

2026 

2027 

2028 

2029 

2030 

Estimated AEAs 

273.5 

268.8 

259.4 

250.1 

240.7 

247.2 

233.8 

220.5 

207.2 

193.9 

Emissions 

281.7 

276.4 

269.9 

267.8 

253.8 

248.2 

236.2 

224.9 

214.4 

204.1 

Distance to target 

-8.2 

-7.6 

-10.5 

-17.7 

-13.1 

-1.0 

-2.3 

-4.4 

-7.2 

-10.2 

Cumulative balance of AEAs 

-8.2 

-15.8 

-26.3 

-44.0 

-57.1 

-58.1 

-60.5 

-64.8 

-72.1 

-82.3 

Baseline emissions 

343.1 MtCO2-eq 

2005 base year emissions 

ETS 
flexibility 

0.0 MtCO2-eq 

Flexibility 

Maximum 
LULUCF 
flexibility 

11.5 MtCO2-eq 

Amount of ETS flexibility as per Commission Implementing 
Decision 2020/2126 and available over the 10-year period 
2021-2030. 

The availability of LULUCF flexibility depends on the amount 
of LULUCF credits generated under the LULUCF Regulation. 
The use of the available LULUCF flexibility is limited to 50% of 
the maximum amount of LULUCF flexibility in the period 2021-
2025 and 50% of the maximum amount of LULUCF flexibility 
in the period 2026-2030. 

LULUCF debit (2021-2025) 

Pursuant to Art 9(2) ESR, AEAs are reduced by the debit generated under the LULUCF 
Regulation in the period 2021-2025. See Chapter 4 of the main report. 

  Cyprus 

Annual emissions allocations, historical and projected emissions, and distance to targets 
under the Effort Sharing Regulation (MtCO2-eq) covering the period 2021 - 2030.  Positive 
values indicate overachievement, negative values indicate underachievement. 

2021 

2022 

2023 

2024 

2025 

2026 

2027 

2028 

2029 

2030 

Estimated AEAs 

Emissions 

Distance to target 

Cumulative balance of AEAs 

4.1 

4.0 

0.1 

0.1 

4.0 

4.0 

3.8 

4.1 

3.7 

4.5 

3.6 

3.8 

3.6 

3.8 

3.4 

3.7 

3.3 

3.5 

3.1 

3.3 

2.9 

3.2 

0.0 

-0.2 

-0.8 

-0.2 

-0.1 

-0.2 

-0.2 

-0.2 

-0.3 

0.1 

-0.2 

-1.0 

-1.2 

-1.4 

-1.6 

-1.8 

-2.1 

-2.3 

Baseline emissions 

4.3 MtCO2-eq 

2005 base year emissions 

ETS 
flexibility 

0.0 MtCO2-eq 

Flexibility 

Maximum 
LULUCF 
flexibility 

0.6 MtCO2-eq 

Amount of ETS flexibility as per Commission Implementing 
Decision 2020/2126 and available over the 10-year period 
2021-2030. 

The availability of LULUCF flexibility depends on the amount 
of LULUCF credits generated under the LULUCF Regulation. 
The use of the available LULUCF flexibility is limited to 50% of 
the maximum amount of LULUCF flexibility in the period 2021-
2025 and 50% of the maximum amount of LULUCF flexibility 
in the period 2026-2030. 

LULUCF debit (2021-2025) 

Pursuant to Art 9(2) ESR, AEAs are reduced by the debit generated under the LULUCF 
Regulation in the period 2021-2025. See Chapter 4 of the main report. 

121 

 
 
 
 
 
 
  Latvia 

Annual emissions allocations, historical and projected emissions, and distance to targets 
under the Effort Sharing Regulation (MtCO2-eq) covering the period 2021 - 2030.  Positive 
values indicate overachievement, negative values indicate underachievement. 

2021 

2022 

2023 

2024 

2025 

2026 

2027 

2028 

2029 

2030 

Estimated AEAs 

Emissions 

Distance to target 

Cumulative balance of AEAs 

10.6 

8.7 

2.0 

2.0 

8.9 

8.4 

0.4 

2.4 

8.6 

8.3 

0.4 

2.8 

8.4 

8.1 

0.3 

3.1 

8.2 

7.5 

0.7 

3.8 

8.0 

7.4 

0.6 

4.4 

7.8 

7.3 

0.5 

4.8 

7.6 

7.2 

0.3 

5.2 

7.3 

7.1 

0.2 

5.4 

7.1 

7.0 

0.1 

5.5 

Baseline emissions 

8.6 MtCO2-eq 

2005 base year emissions 

ETS 
flexibility 

0.0 MtCO2-eq 

Flexibility 

Maximum 
LULUCF 
flexibility 

3.1 MtCO2-eq 

Amount of ETS flexibility as per Commission Implementing 
Decision 2020/2126 and available over the 10-year period 
2021-2030. 

The availability of LULUCF flexibility depends on the amount 
of LULUCF credits generated under the LULUCF Regulation. 
The use of the available LULUCF flexibility is limited to 50% of 
the maximum amount of LULUCF flexibility in the period 2021-
2025 and 50% of the maximum amount of LULUCF flexibility 
in the period 2026-2030. 

LULUCF debit (2021-2025) 

Pursuant to Art 9(2) ESR, AEAs are reduced by the debit generated under the LULUCF 
Regulation in the period 2021-2025. See Chapter 4 of the main report. 

  Lithuania 

Annual emissions allocations, historical and projected emissions, and distance to targets 
under the Effort Sharing Regulation (MtCO2-eq) covering the period 2021 - 2030.  Positive 
values indicate overachievement, negative values indicate underachievement. 

2021 

2022 

2023 

2024 

2025 

2026 

2027 

2028 

2029 

2030 

Estimated AEAs 

16.1 

13.7 

13.3 

12.9 

12.4 

12.3 

11.8 

11.3 

10.8 

10.3 

Emissions 

13.7 

13.3 

13.1 

13.3 

13.2 

12.7 

12.1 

11.5 

10.9 

10.3 

Distance to target 

Cumulative balance of AEAs 

2.4 

2.4 

0.4 

2.8 

0.2 

-0.4 

-0.7 

-0.4 

-0.3 

-0.2 

-0.1 

2.9 

2.5 

1.7 

1.4 

1.1 

0.9 

0.7 

0.0 

0.8 

Baseline emissions 

13.1 MtCO2-eq 

2005 base year emissions 

ETS 
flexibility 

0.0 MtCO2-eq 

Flexibility 

Maximum 
LULUCF 
flexibility 

6.5 MtCO2-eq 

Amount of ETS flexibility as per Commission Implementing 
Decision 2020/2126 and available over the 10-year period 
2021-2030. 

The availability of LULUCF flexibility depends on the amount 
of LULUCF credits generated under the LULUCF Regulation. 
The use of the available LULUCF flexibility is limited to 50% of 
the maximum amount of LULUCF flexibility in the period 2021-
2025 and 50% of the maximum amount of LULUCF flexibility 
in the period 2026-2030. 

LULUCF debit (2021-2025) 

Pursuant to Art 9(2) ESR, AEAs are reduced by the debit generated under the LULUCF 
Regulation in the period 2021-2025. See Chapter 4 of the main report. 

122 

 
 
 
 
 
  Luxembourg 

Annual emissions allocations, historical and projected emissions, and distance to targets 
under the Effort Sharing Regulation (MtCO2-eq) covering the period 2021 - 2030.  Positive 
values indicate overachievement, negative values indicate underachievement. 

2021 

2022 

2023 

2024 

2025 

2026 

2027 

2028 

2029 

2030 

Estimated AEAs 

Emissions 

Distance to target 

Cumulative balance of AEAs 

8.4 

8.1 

0.3 

0.3 

8.1 

7.1 

1.1 

1.4 

7.8 

6.9 

0.9 

2.3 

7.4 

6.8 

0.6 

2.9 

7.0 

6.4 

0.5 

3.4 

6.5 

6.0 

0.5 

3.9 

6.2 

5.7 

0.5 

4.4 

5.8 

5.3 

0.5 

4.9 

5.4 

4.9 

0.5 

5.4 

5.1 

4.5 

0.6 

6.0 

Baseline emissions 

10.1 MtCO2-eq 

2005 base year emissions 

ETS 
flexibility 

2.0 MtCO2-eq 

Flexibility 

Maximum 
LULUCF 
flexibility 

0.3 MtCO2-eq 

Amount of ETS flexibility as per Commission Implementing 
Decision 2020/2126 and available over the 10-year period 
2021-2030. 

The availability of LULUCF flexibility depends on the amount 
of LULUCF credits generated under the LULUCF Regulation. 
The use of the available LULUCF flexibility is limited to 50% of 
the maximum amount of LULUCF flexibility in the period 2021-
2025 and 50% of the maximum amount of LULUCF flexibility 
in the period 2026-2030. 

LULUCF debit (2021-2025) 

Pursuant to Art 9(2) ESR, AEAs are reduced by the debit generated under the LULUCF 
Regulation in the period 2021-2025. See Chapter 4 of the main report. 

  Hungary 

Annual emissions allocations, historical and projected emissions, and distance to targets 
under the Effort Sharing Regulation (MtCO2-eq) covering the period 2021 - 2030.  Positive 
values indicate overachievement, negative values indicate underachievement. 

2021 

2022 

2023 

2024 

2025 

2026 

2027 

2028 

2029 

2030 

Estimated AEAs 

49.9 

43.3 

42.8 

42.2 

41.7 

41.9 

41.2 

40.4 

39.6 

38.9 

Emissions 

46.1 

44.0 

40.7 

41.2 

40.6 

39.5 

38.4 

37.3 

36.2 

35.2 

Distance to target 

3.8 

-0.6 

Cumulative balance of AEAs 

3.8 

3.2 

2.0 

5.2 

1.0 

6.2 

1.1 

7.3 

2.4 

2.7 

3.1 

3.4 

3.7 

9.7 

12.5 

15.5 

18.9 

22.6 

Baseline emissions 

47.8 MtCO2-eq 

2005 base year emissions 

ETS 
flexibility 

0.0 MtCO2-eq 

Flexibility 

Maximum 
LULUCF 
flexibility 

2.1 MtCO2-eq 

Amount of ETS flexibility as per Commission Implementing 
Decision 2020/2126 and available over the 10-year period 
2021-2030. 

The availability of LULUCF flexibility depends on the amount 
of LULUCF credits generated under the LULUCF Regulation. 
The use of the available LULUCF flexibility is limited to 50% of 
the maximum amount of LULUCF flexibility in the period 2021-
2025 and 50% of the maximum amount of LULUCF flexibility 
in the period 2026-2030. 

LULUCF debit (2021-2025) 

Pursuant to Art 9(2) ESR, AEAs are reduced by the debit generated under the LULUCF 
Regulation in the period 2021-2025. See Chapter 4 of the main report. 

123 

 
 
 
 
 
  Malta 

Annual emissions allocations, historical and projected emissions, and distance to 
targets under the Effort Sharing Regulation (MtCO2-eq) covering the period 2021 - 2030.  
Positive values indicate overachievement, negative values indicate underachievement. 

2021 

2022  2023  2024  2025  2026  2027  2028  2029  2030 

Estimated AEAs 

2.1 

1.2 

1.2 

1.1 

1.1 

1.2 

1.1 

1.0 

0.9 

0.8 

Emissions 

1.3 

1.5 

1.4 

1.4 

1.5 

1.4 

1.3 

1.3 

1.3 

1.3 

Distance to target 

0.7 

-0.2 

-0.3 

-0.3 

-0.4 

-0.2 

-0.2 

-0.3 

-0.4 

-0.5 

Cumulative balance of AEAs 

0.7 

0.5 

0.3 

0.0 

-0.4 

-0.7 

-0.9 

-1.2 

-1.6 

-2.1 

Baseline emissions 

1.0 MtCO2-eq 

2005 base year emissions 

ETS flexibility 

0.5 MtCO2-eq 

Flexibilit
y 

Maximum LULUCF 
flexibility 

0.0 MtCO2-eq 

Amount of ETS flexibility as per Commission Implementing 
Decision 2020/2126 and available over the 10-year period 
2021-2030. 

The availability of LULUCF flexibility depends on the 
amount of LULUCF credits generated under the LULUCF 
Regulation. The use of the available LULUCF flexibility is 
limited to 50% of the maximum amount of LULUCF 
flexibility in the period 2021-2025 and 50% of the maximum 
amount of LULUCF flexibility in the period 2026-2030. 

LULUCF debit (2021-2025) 

Pursuant to Art 9(2) ESR, AEAs are reduced by the debit generated under the 
LULUCF Regulation in the period 2021-2025. See Chapter 4 of the main report. 

  Netherlands 

Annual emissions allocations, historical and projected emissions, and distance to 
targets under the Effort Sharing Regulation (MtCO2-eq) covering the period 2021 - 2030.  
Positive values indicate overachievement, negative values indicate underachievement. 

2021 

2022 

2023  2024  2025  2026  2027  2028  2029 

2030 

Estimated AEAs 

Emissions 

Distance to target 

Cumulative balance of 
AEAs 

98.5 

93.1 

5.5 

5.5 

96.7 

92.9 

89.2 

85.4 

79.8 

76.5 

73.2 

69.9 

85.0 

83.7 

82.0 

82.3 

80.1 

77.4 

73.8 

71.5 

11.7 

9.2 

7.1 

3.2 

-0.3 

-0.9 

-0.6 

-1.6 

17.1 

26.3 

33.4 

36.6 

36.3 

35.4 

34.8 

33.2 

66.6 

68.3 

-1.7 

31.5 

Baseline emissions 

128.1 MtCO2-eq 

2005 base year emissions 

ETS 
flexibility 

0.0 MtCO2-eq 

Flexibilit
y 

Maximum 
LULUCF 
flexibility 

13.4 MtCO2-eq 

Amount of ETS flexibility as per Commission Implementing 
Decision 2020/2126 and available over the 10-year period 2021-
2030. 

The availability of LULUCF flexibility depends on the amount of 
LULUCF credits generated under the LULUCF Regulation. The use 
of the available LULUCF flexibility is limited to 50% of the maximum 
amount of LULUCF flexibility in the period 2021-2025 and 50% of 
the maximum amount of LULUCF flexibility in the period 2026-
2030. 

LULUCF debit (2021-
2025) 

Pursuant to Art 9(2) ESR, AEAs are reduced by the debit generated under the LULUCF 
Regulation in the period 2021-2025. See Chapter 4 of the main report. 

124 

 
 
 
 
 
  Austria 

Annual emissions allocations, historical and projected emissions, and distance to targets 
under the Effort Sharing Regulation (MtCO2-eq) covering the period 2021 - 2030.  Positive 
values indicate overachievement, negative values indicate underachievement. 

2021 

2022 

2023 

2024 

2025 

2026 

2027 

2028 

2029 

2030 

Estimated AEAs 

48.8 

47.4 

45.2 

43.0 

40.7 

40.6 

37.9 

35.1 

32.4 

29.6 

Emissions 

49.3 

46.9 

44.3 

43.0 

43.2 

41.8 

40.3 

38.3 

36.4 

34.2 

Distance to target 

-0.6 

Cumulative balance of AEAs 

-0.6 

0.5 

0.0 

0.9 

0.9 

0.0 

-2.4 

-1.2 

-2.4 

-3.1 

-4.0 

-4.6 

0.9 

-1.6 

-2.7 

-5.1 

-8.2 

-12.2 

-16.8 

Baseline emissions 

57.0 MtCO2-eq 

2005 base year emissions 

ETS 
flexibility 

11.4 MtCO2-eq 

Flexibility 

Maximum 
LULUCF 
flexibility 

2.5 MtCO2-eq 

Amount of ETS flexibility as per Commission Implementing 
Decision 2020/2126 and available over the 10-year period 
2021-2030. 

The availability of LULUCF flexibility depends on the amount 
of LULUCF credits generated under the LULUCF Regulation. 
The use of the available LULUCF flexibility is limited to 50% of 
the maximum amount of LULUCF flexibility in the period 2021-
2025 and 50% of the maximum amount of LULUCF flexibility 
in the period 2026-2030. 

LULUCF debit (2021-2025) 

Pursuant to Art 9(2) ESR, AEAs are reduced by the debit generated under the LULUCF 
Regulation in the period 2021-2025. See Chapter 4 of the main report. 

  Poland 

Annual emissions allocations, historical and projected emissions, and distance to targets 
under the Effort Sharing Regulation (MtCO2-eq) covering the period 2021 - 2030.  Positive 
values indicate overachievement, negative values indicate underachievement. 

2021 

2022 

2023 

2024 

2025 

2026 

2027 

2028 

2029 

2030 

Estimated AEAs 

215.0 

204.4 

198.6 

192.9 

187.1 

184.8 

178.2 

171.6 

165.0 

158.4 

Emissions 

206.9 

196.4 

195.7 

182.5 

184.4 

179.0 

173.6 

168.2 

162.8 

157.4 

Distance to target 

8.1 

8.0 

2.9 

10.4 

2.8 

5.8 

4.6 

3.4 

2.2 

1.0 

Cumulative balance of AEAs 

8.1 

16.2 

19.1 

29.5 

32.2 

38.0 

42.6 

46.0 

48.2 

49.2 

Baseline emissions 

192.5 MtCO2-eq 

2005 base year emissions 

ETS 
flexibility 

0.0 MtCO2-eq 

Flexibility 

Maximum 
LULUCF 
flexibility 

21.7 MtCO2-eq 

Amount of ETS flexibility as per Commission Implementing 
Decision 2020/2126 and available over the 10-year period 
2021-2030. 

The availability of LULUCF flexibility depends on the amount 
of LULUCF credits generated under the LULUCF Regulation. 
The use of the available LULUCF flexibility is limited to 50% of 
the maximum amount of LULUCF flexibility in the period 2021-
2025 and 50% of the maximum amount of LULUCF flexibility 
in the period 2026-2030. 

LULUCF debit (2021-2025) 

Pursuant to Art 9(2) ESR, AEAs are reduced by the debit generated under the LULUCF 
Regulation in the period 2021-2025. See Chapter 4 of the main report. 

125 

 
 
 
 
 
  Portugal 

Annual emissions allocations, historical and projected emissions, and distance to targets 
under the Effort Sharing Regulation (MtCO2-eq) covering the period 2021 - 2030.  Positive 
values indicate overachievement, negative values indicate underachievement. 

2021 

2022 

2023 

2024 

2025 

2026 

2027 

2028 

2029 

2030 

Estimated AEAs 

42.5 

40.8 

40.1 

39.3 

38.5 

37.9 

37.1 

36.3 

35.5 

34.7 

Emissions 

39.6 

39.5 

39.9 

39.1 

32.5 

31.8 

31.1 

30.5 

29.8 

29.1 

Distance to target 

Cumulative balance of AEAs 

2.9 

2.9 

1.3 

4.3 

0.2 

4.4 

0.2 

6.1 

6.1 

6.0 

5.8 

5.7 

5.6 

4.6 

10.6 

16.7 

22.7 

28.6 

34.3 

39.9 

Baseline emissions 

48.6 MtCO2-eq 

2005 base year emissions 

ETS 
flexibility 

0.0 MtCO2-eq 

Flexibility 

Maximum 
LULUCF 
flexibility 

5.2 MtCO2-eq 

Amount of ETS flexibility as per Commission Implementing 
Decision 2020/2126 and available over the 10-year period 
2021-2030. 

The availability of LULUCF flexibility depends on the amount 
of LULUCF credits generated under the LULUCF Regulation. 
The use of the available LULUCF flexibility is limited to 50% of 
the maximum amount of LULUCF flexibility in the period 2021-
2025 and 50% of the maximum amount of LULUCF flexibility 
in the period 2026-2030. 

LULUCF debit (2021-2025) 

Pursuant to Art 9(2) ESR, AEAs are reduced by the debit generated under the LULUCF 
Regulation in the period 2021-2025. See Chapter 4 of the main report. 

  Romania 

Annual emissions allocations, historical and projected emissions, and distance to targets 
under the Effort Sharing Regulation (MtCO2-eq) covering the period 2021 - 2030.  Positive 
values indicate overachievement, negative values indicate underachievement. 

2021 

2022 

2023 

2024 

2025 

2026 

2027 

2028 

2029 

2030 

Estimated AEAs 

87.9 

76.9 

75.8 

74.8 

73.7 

72.6 

71.5 

70.4 

69.4 

68.3 

Emissions 

76.5 

74.5 

73.9 

93.6 

75.1 

74.6 

73.4 

71.8 

69.8 

66.3 

Distance to target 

11.4 

2.4 

1.9 

-18.8 

-1.4 

-2.0 

-1.9 

-1.3 

-0.4 

2.0 

Cumulative balance of AEAs 

11.4 

13.8 

15.7 

-3.1 

-4.5 

-6.5 

-8.5 

-9.8 

-10.2 

-8.1 

Baseline emissions 

78.2 MtCO2-eq 

2005 base year emissions 

ETS 
flexibility 

0.0 MtCO2-eq 

Flexibility 

Maximum 
LULUCF 
flexibility 

13.2 MtCO2-eq 

Amount of ETS flexibility as per Commission Implementing 
Decision 2020/2126 and available over the 10-year period 
2021-2030. 

The availability of LULUCF flexibility depends on the amount 
of LULUCF credits generated under the LULUCF Regulation. 
The use of the available LULUCF flexibility is limited to 50% of 
the maximum amount of LULUCF flexibility in the period 2021-
2025 and 50% of the maximum amount of LULUCF flexibility 
in the period 2026-2030. 

LULUCF debit (2021-2025) 

Pursuant to Art 9(2) ESR, AEAs are reduced by the debit generated under the LULUCF 
Regulation in the period 2021-2025. See Chapter 4 of the main report. 

126 

 
 
 
 
 
  Slovenia 

Annual emissions allocations, historical and projected emissions, and distance to targets 
under the Effort Sharing Regulation (MtCO2-eq) covering the period 2021 - 2030.  Positive 
values indicate overachievement, negative values indicate underachievement. 

2021 

2022 

2023 

2024 

2025 

2026 

2027 

2028 

2029 

2030 

Estimated AEAs 

11.4 

11.1 

10.8 

10.5 

10.2 

9.9 

Emissions 

10.4 

10.7 

10.2 

10.4 

10.5 

10.1 

9.6 

9.7 

Distance to target 

Cumulative balance of AEAs 

1.0 

1.0 

0.4 

1.4 

0.6 

2.0 

0.1 

-0.3 

-0.2 

-0.1 

2.1 

1.8 

1.6 

1.5 

9.3 

9.3 

0.0 

1.6 

9.0 

8.9 

0.1 

1.7 

8.7 

8.5 

0.2 

1.9 

Baseline emissions 

11.8 MtCO2-eq 

2005 base year emissions 

ETS 
flexibility 

0.0 MtCO2-eq 

Flexibility 

Maximum 
LULUCF 
flexibility 

1.3 MtCO2-eq 

Amount of ETS flexibility as per Commission Implementing 
Decision 2020/2126 and available over the 10-year period 
2021-2030. 

The availability of LULUCF flexibility depends on the amount 
of LULUCF credits generated under the LULUCF Regulation. 
The use of the available LULUCF flexibility is limited to 50% of 
the maximum amount of LULUCF flexibility in the period 2021-
2025 and 50% of the maximum amount of LULUCF flexibility 
in the period 2026-2030. 

LULUCF debit (2021-2025) 

Pursuant to Art 9(2) ESR, AEAs are reduced by the debit generated under the LULUCF 
Regulation in the period 2021-2025. See Chapter 4 of the main report. 

  Slovakia 

Annual emissions allocations, historical and projected emissions, and distance to targets 
under the Effort Sharing Regulation (MtCO2-eq) covering the period 2021 - 2030.  Positive 
values indicate overachievement, negative values indicate underachievement. 

2021 

2022 

2023 

2024 

2025 

2026 

2027 

2028 

2029 

2030 

Estimated AEAs 

23.4 

21.2 

20.7 

20.3 

19.9 

19.1 

18.8 

18.5 

18.2 

17.9 

Emissions 

20.4 

19.7 

19.3 

18.1 

19.0 

18.6 

18.2 

17.8 

17.4 

17.0 

Distance to target 

Cumulative balance of AEAs 

3.0 

3.0 

1.4 

4.5 

1.5 

5.9 

2.2 

8.1 

0.9 

9.0 

0.5 

0.6 

0.7 

0.8 

0.9 

9.5 

10.1 

10.8 

11.6 

12.4 

Baseline emissions 

23.1 MtCO2-eq 

2005 base year emissions 

ETS 
flexibility 

0.0 MtCO2-eq 

Flexibility 

Maximum 
LULUCF 
flexibility 

1.2 MtCO2-eq 

Amount of ETS flexibility as per Commission Implementing 
Decision 2020/2126 and available over the 10-year period 
2021-2030. 

The availability of LULUCF flexibility depends on the amount 
of LULUCF credits generated under the LULUCF Regulation. 
The use of the available LULUCF flexibility is limited to 50% of 
the maximum amount of LULUCF flexibility in the period 2021-
2025 and 50% of the maximum amount of LULUCF flexibility 
in the period 2026-2030. 

LULUCF debit (2021-2025) 

Pursuant to Art 9(2) ESR, AEAs are reduced by the debit generated under the LULUCF 
Regulation in the period 2021-2025. See Chapter 4 of the main report. 

127 

 
 
 
 
 
  Finland 

Annual emissions allocations, historical and projected emissions, and distance to targets 
under the Effort Sharing Regulation (MtCO2-eq) covering the period 2021 - 2030.  Positive 
values indicate overachievement, negative values indicate underachievement. 

2021 

2022 

2023 

2024 

2025 

2026 

2027 

2028 

2029 

2030 

Estimated AEAs 

28.8 

28.0 

26.6 

25.3 

23.9 

23.2 

21.7 

20.2 

18.7 

17.2 

Emissions 

27.4 

26.6 

25.6 

25.4 

23.9 

23.0 

22.3 

20.4 

19.6 

18.9 

Distance to target 

Cumulative balance of AEAs 

1.4 

1.4 

1.4 

2.8 

1.0 

-0.1 

3.8 

3.7 

0.0 

3.7 

0.2 

-0.6 

-0.2 

-0.9 

-1.7 

3.9 

3.2 

3.1 

2.2 

0.5 

Baseline emissions 

34.4 MtCO2-eq 

2005 base year emissions 

ETS 
flexibility 

6.9 MtCO2-eq 

Flexibility 

Maximum 
LULUCF 
flexibility 

4.5 MtCO2-eq 

Amount of ETS flexibility as per Commission Implementing 
Decision 2020/2126 and available over the 10-year period 
2021-2030. 

The availability of LULUCF flexibility depends on the amount 
of LULUCF credits generated under the LULUCF Regulation. 
The use of the available LULUCF flexibility is limited to 50% of 
the maximum amount of LULUCF flexibility in the period 2021-
2025 and 50% of the maximum amount of LULUCF flexibility 
in the period 2026-2030. 

LULUCF debit (2021-2025) 

Pursuant to Art 9(2) ESR, AEAs are reduced by the debit generated under the LULUCF 
Regulation in the period 2021-2025. See Chapter 4 of the main report. 

  Sweden 

Annual emissions allocations, historical and projected emissions, and distance to targets 
under the Effort Sharing Regulation (MtCO2-eq) covering the period 2021 - 2030.  Positive 
values indicate overachievement, negative values indicate underachievement. 

2021 

2022 

2023 

2024 

2025 

2026 

2027 

2028 

2029 

2030 

Estimated AEAs 

31.3 

30.7 

29.6 

28.5 

27.3 

25.5 

24.5 

23.6 

22.6 

21.6 

Emissions 

29.0 

27.2 

26.8 

30.5 

28.8 

27.8 

27.1 

25.9 

24.8 

23.8 

Distance to target 

Cumulative balance of AEAs 

2.3 

2.3 

3.5 

5.8 

2.8 

-2.1 

-1.4 

-2.3 

-2.5 

-2.3 

-2.2 

-2.2 

8.6 

6.5 

5.1 

2.8 

0.3 

-2.0 

-4.3 

-6.5 

Baseline emissions 

43.2 MtCO2-eq 

2005 base year emissions 

ETS 
flexibility 

5.2 MtCO2-eq 

Flexibility 

Maximum 
LULUCF 
flexibility 

4.9 MtCO2-eq 

Amount of ETS flexibility as per Commission Implementing 
Decision 2020/2126 and available over the 10-year period 
2021-2030. 

The availability of LULUCF flexibility depends on the amount 
of LULUCF credits generated under the LULUCF Regulation. 
The use of the available LULUCF flexibility is limited to 50% of 
the maximum amount of LULUCF flexibility in the period 2021-
2025 and 50% of the maximum amount of LULUCF flexibility 
in the period 2026-2030. 

LULUCF debit (2021-2025) 

Pursuant to Art 9(2) ESR, AEAs are reduced by the debit generated under the LULUCF 
Regulation in the period 2021-2025. See Chapter 4 of the main report. 

128 

 
 
 
 
 
10  LULUCF 

The revised LULUCF regulation sets two compliance periods. 

From 2021 to 2025: the assessment of Member States’ progress is based on 
‘accounted’ emissions and removals in the land sector, taking into account historical 
benchmarks for land use activities, such as the Forest Reference Level for sustainable 
forest management. Across all land categories, a Member State has to fulfil the ‘no-
debit’ rule, meaning that the ‘accounted’ emissions do not exceed ‘accounted’ 
removals. If a Member State shows more accounted emissions than accounted 
removals, it has a ‘debit’ and is therefore not in line with the ‘no-debit’ rule. Conversely, 
if a Member State shows more accounted removals than accounted emissions, it has a 
‘credit’ and therefore meets the ‘no-debit’ rule requirement. If the ‘no-debit’ rule is not 
met in a Member State, it will be able to use a number of flexibilities to compensate for 
the net debit (e.g. by purchasing credits from other Member States). If a net debit 
remains from the first compliance period, even after using all flexibilities, this debit will 
be moved to the ESR account of the Member State. 

From 2026 to 2030: the reporting rules are simplified and are based on the sum of 
reported emissions and removals in all land categories, with the historical benchmarks 
completely abolished. The revised EU target requires that the EU increases its land-
based net removals by additional -42 MtCO2-eq by 2030 as compared to the yearly 
average of the period 2016-2018. This target is then distributed among Member States 
by means of binding national targets for 2030 in a way that requires each Member State 
to increase their ambition in national agriculture and forestry policies 74. 

There are several flexibilities Member States can make use of under the LULUCF 
Regulation. The general flexibilities include the flexibility with the ESR, as well as 
transfers of LULUCF surpluses among Member States. If a Member State fails to meet 
its LULUCF target or budget, it can deduct annual emission allocations under ESR and 
transfer them to LULUCF, up to the amount required to meet its target. If a Member 
State outperforms its LULUCF target and budget, it can transfer its LULUCF surplus to 
another Member State. 

For the period 2021 to 2025, specifically, Member States have access to the managed 
forest land flexibility mechanism, subject to the EU as a whole meeting the ‘no-debit’ 
commitment. Member States can compensate excess accounted emissions from forest 
land provided they include measures to ensure conservation or the increase in forest 
sinks in their long-term strategies under the Governance Regulation, or they provide 
evidence of natural disturbances and plan measures to prevent or mitigate similar 
events in the future. 

For the period 2026 to 2030, in addition to the general flexibilities, the land use 
mechanism can be used by Member States that do not meet their target, subject to the 

74 Handbook on the updated LULUCF Regulation EU 2018/841 - Guidance and orientation for the implementation of 
the updated regulation - Version 2 (europa.eu) 

129 

 
 
EU, as a whole, meeting its 2030 target. This includes compensation for natural 
disturbances as well as a flexibility due to the negative effects of long-term effects of 
climate change or the negative effects of an exceptionally high proportion of organic 
soils on land removals. 

Table 27: LULUCF accounted net removals for 2021-23 (2025 submission per Member State), in MtCO2-eq 

Country 

Preliminary cumulative debit for 2021-2023 

Austria 
Belgium 
Bulgaria 
Cyprus 
Czechia 
Germany 
Denmark 
Spain 
Estonia 
Finland 
France 
Greece 
Croatia 
Hungary 
Ireland 
Italy 
Lithuania 
Luxembourg 
Latvia 
Malta 
Netherlands 
Poland 
Portugal 
Romania 
Slovakia 
Slovenia 
Sweden 
EU total 

13.2 
0.7 
-8.3 
0.0 
21.1 
138.0 
-19.7 
-52.5 
4.9 
97.2 
29.9 
-5.5 
-6.0 
-18.3 
-12.1 
-74.8 
-2.8 
-1.0 
4.0 
-0.0 
-5.3 
-14.3 
31.4 
-65.9 
-6.0 
-2.1 
6.3 
52.0 

Note: Computation of the accounting status for each Member State and the EU. The method continued the 
approach applied under the Kyoto Protocol period (2013 to 2020). However, the accounting approach for the 
period 2021 to 2025 is new and differs from the Kyoto exercise. The accounting follows the specifications laid out in 
Regulation 2018/841: Article 2, 4, 5, 6, 7 8 and 9. The input data for this analysis has been extracted from the EU 
Greenhouse Gas Inventory Report 2025 for 1990-2023 based on final Member States’ inventory submissions under 
the EU Governance Regulation (GHGI). The computation of accounting results combines the relevant data from the 
final GHGI in accordance with the rules laid out in the above articles (Reported data for the years 2005 to 2009 and 
2021-2023, from Section 4 of the GHGI). This analysis provides an approximate estimate of the status of a Member 
State’s trend towards compliance with its article 4(1) commitment. It also provides a collective status of 
achievement of the article 4 commitment, an element that is needed to determine if the flexibility through article 13 
of the regulation is available (See Regulation 2018/841 Art 13(2)(b)). Numbers in table rounded up. Calculations 
cover emissions and removals of the greenhouse gases listed in Section A of Annex I to Regulation 2018/841. 

130 

 
 
 
11 Climate resilience and adaptation 

11.1 Progress by Member States 

Under the European Climate Law, the Commission has the mandate to assess the 
consistency of relevant national measures with the EU climate adaptation objectives 75. 
In its assessment, conducted in September 2023, the Commission found that Member 
States’ measures were often in need for improvements to become more consistent with 
the EU’s and the international agreements’ objectives to ensure continuous progress in 
enhancing adaptive capacity, strengthening resilience and reducing vulnerability to 
climate change. 

Following the assessment, the Commission issued recommendations to 26 Member 
States 76, addressing a broad range of aspects across the policy cycle. The following list 
provides an assessment of Member States replies of Spring 2025 to the Commission 
recommendations:  

•  Although most Member States had an appropriate mandatory framework for 
climate resilience and adaptation policies and action in place, some had 
been recommended to complete or reinforce legal bases. Concerned Member 
States reported being in the process of reviewing and revising their national 
adaptation strategies and plans, many of them with a perspective by 2030.  Other 
long-term documents, such as national adaptation laws or climate laws 
containing adaptation provisions, were also developed. Sub-national adaptation 
plans and strategies are being prepared at regional, urban and local levels. 

•  Acknowledging efforts to better inform national adaptation strategies and plans, 

the Commission had recommended Member States to update their 
assessments of risks and vulnerabilities. To address the recommendations, 
several Member States conducted interim or outsourced risk assessments and 
studies which informed their national adaptation strategies and allowed 
adjustments of the national adaptation plans and subnational measures. While 
many Member States opted for a multi-risk approach, others conducted 
assessments for specific risks, such as coastal or floods, or focused on the 
subnational levels. For properly assessing the risks they faced, some Member 
States used the latest climate scenarios, warming trajectories or long-term 
projections. 

•  The Commission had encouraged Member States to ensure that proper 

mechanisms are in place to prepare and regularly review and update sub-
national policies. To address this, concerned Member States referred to their 
national policy frameworks, which increasingly contained obligations for regional 
and local authorities to develop and review adaptation plans. However, in some 

75 (Article 7(1)(b)) and article 5(4) ECL. 
76 As set out in art 7.2. See: Commission Staff Working Document: Assessment of progress on climate adaptation in 
the individual Member States according to the European Climate Law, SWD (2023) 932 

131 

 
 
cases, the obligation to periodically review these plans is not robust or binding. 
Many also set obligations on the submission of information to central designated 
authorities, mainly national ministries. To support sub-national efforts, central 
administrations provide information, voluntary guidelines, guidebooks, and 
technical support. 

•  The Commission had also found room for improvement in vertical coordination 
between different levels of governance. To ensure coordinated interventions 
and alignment of planning tools, concerned Member States have now specified 
clearer roles, mandates, and responsibilities for planning and implementation. 
Some Member States have designated national competent authorities to 
coordinate efforts and provide support. Others have appointed ad hoc 
authorities to assess and improve policy frameworks and present proposals for 
legislative changes. 

•  To empower sub-national authorities, Member States are carrying out 

initiatives, including workshops, to raise awareness, enhance engagement, and 
build institutional capacity. A wide range of fora, ranging from municipal 
networks and associations to platforms and advisory bodies, have been 
established to facilitate exchange of information and best practices and provide 
support for implementation at the local level. 

•  Since the whole-of-society approach requires the engagement of all relevant 

stakeholders in the design, planning and implementation, the Commission had 
recommended that Member States ensure the involvement of social partners 
and private sector stakeholders in policy-making. Special attention needs to be 
paid to stakeholder groups that are particularly vulnerable to the impacts of 
climate change.  

•  Some Member States in process to review their policy frameworks took the 

opportunity to incorporate measures to enhance stakeholder engagement. 
Other Member States with already stronger binding frameworks opted for a wider 
range of specific mechanisms. These included mechanisms oriented to the 
wider public, such as hearings, public consultations, and surveys or 
questionnaires, and targeted instruments such as dedicated meetings with 
private actors, sectoral discussions, clarification and debating sessions and 
working groups. More educational-oriented activities were conducted, such as 
workshops and seminars, outreach, awareness-raising and communication 
activities. To ensure transparency and accountability, documentation of these 
processes and their outputs was maintained through reports and published on 
online portals. 

•  With regard to funding, the Commission had recommended to prioritise climate 
resilience in the use of the EU funding programmes, ensuring that such funds 
are spent in a way that they increase climate resilience while avoiding 
maladaptation. Concerned Member States took this into account through 

132 

 
different ways, including integration of climate-proofing requirements into 
environmental impact assessments and procedures for approvals of operations. 
Similarly, other governments ensured - through regulatory provisions, guidelines 
or managing bodies - that the ’Do No Significant Harm’ (DNSH) requirements are 
incorporated in the selection criteria for planned projects under the national 
adaptation strategy, Common Agricultural Policy funding schemes and other 
financial and programming frameworks.  

• 

In their replies, Member States referred to support projects for sustainable land 
and water uses, urban infrastructure modernisation, and implementation of 
adaptation measures. In parallel, some Member States are investing in capacity-
building, investing in education projects and training on climate verification for 
people involved in the financing and contracting of EU financed projects. 

•  On nature and ecosystem-based solutions, the Commission had 

recommended Member States to prioritise their promotion in the national 
strategies, policies and plans, and allocate sufficient investments for their 
deployment. In their replies, several Member States referred to the incorporation 
or reinforcement of specific provisions into their adaptation strategies or plans. 
Some Member States have developed manuals or guidelines on the use of 
nature-based solutions. Among the highlighted measures, special focus was put 
on the deployment of blue and green infrastructure, as sustainable alternatives 
to grey infrastructure in cities and urban landscapes. Sector-specific nature-
based solutions projects are advancing, particularly in wetlands and forest 
restoration, water retention and management, flood risks reduction, and 
sustainable coastal zone management. Some strategies and plans encourage 
sustainable land-use practices that integrate nature-based solution, such as 
agroforestry and soil conservation. Funding for nature-based solutions is 
increasingly mobilized through EU funds. Incentives to mobilise public and 
private funding and specific subsidies for projects incorporating nature-based 
solutions are being allocated to support implementation. 

11.2 Just resilience and inclusion of vulnerable groups 

Climate risks are not felt equally, and they impact disproportionately the most 
vulnerable people due to a range of socio-economic and demographic factors such as 
income, gender, age, disability, health, and as well as people and communities facing 
social exclusion and marginalisation (particularly affecting migrants, ethnic minorities, 
and indigenous peoples). 

Just resilience is a concept to help address the uneven impacts of climate change 
and ensure that vulnerable individuals or social groups benefit fairly from adaptation 
responses and are not disproportionately burdened, including tackling systemic 
inequalities, ensuring fair access to resources and decision-making and ensuring 

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recognition of diverse perspectives and values 77. The European Climate Risk 
Assessment 78, the European Commission′s communication on managing climate 
risks 79, and the EU preparedness union strategy 80 already stress the need for 
adaptation strategies that prioritise and include vulnerable populations into planning 
and decision making. Member States and subnational governments are increasingly 
incorporating justice into their adaptation policymaking and planning. Similarly, at the 
sub-national level, justice has increasingly been taken into consideration in urban 
adaptation planning. With many examples around Europe, participatory processes are 
being used to inform policy 81. Nevertheless, inclusion of vulnerable groups and justice 
still need attention 82. Below, three examples of national efforts in involving 
stakeholders, vulnerable groups and integrating justice to national adaptation policy are 
presented. 

Indigenous peoples’ perspectives to climate change: The Saami Climate Council of 
Finland 83 

The Saami Climate Council is a globally unique scientific panel established under the 
Climate Act of Finland. The task of the Saami Climate Council is to provide knowledge 
on climate change from the perspective of Saami traditional knowledge 84 and research. 
The knowledge is used by the authorities of Finland and the indigenous Saami 
community for decision-making, to raise awareness of the impacts of climate change 
on Saami culture and support adaptation and mitigation in Saami culture. The Saami 
Climate Council promotes interaction between science and Saami traditional 
knowledge. The Climate Council's activities are based on scientific knowledge and 
Saami traditional knowledge and both scientist and traditional knowledge holders are 
represented in the Council. 

Participatory process for including stakeholders in national adaptation planning: 
National adaptation strategy of Germany 85 

Germany’s 2024 climate adaptation strategy was developed through an extensive 
participation process involving various stakeholders and citizens. During this process, 
events, such as the “Dialogue on climate adaptation - mastering life in a changing 

77 Social fairness in preparing for climate change: how resilience can benefit communities across Europe | European 
Environment Agency's home page 
78 European Climate Risk Assessment | European Environment Agency's home page 
79 Managing climate risks: protecting people and prosperity - European Commission 
80 Preparedness - European Commission 
81 Urban adaptation in Europe: what works? | European Environment Agency's home page 
82 Social fairness in preparing for climate change: how resilience can benefit communities across Europe | European 
Environment Agency's home page 
83 Saamelainen ilmastoneuvosto - Saamelainen ilmastoneuvosto - Etusivu 
84 Traditional knowledge is knowledge, innovations and practices of indigenous and local communities around the 
world. Developed from experience gained over the centuries and adapted to the local culture and environment, 
traditional knowledge is transmitted orally from generation to generation. It tends to be collectively owned and takes 
the form of stories, songs, folklore, proverbs, cultural values, beliefs, rituals, community laws, local language and 
agricultural practices, including the development of plant species and animal breeds. Traditional knowledge is mainly 
of a practical nature, particularly in such fields as agriculture, fisheries, health, horticulture, forestry and 
environmental management in general. Source: Convention on Biological Diversity Introduction. 
85 Deutsche Anpassungsstrategie an den Klimawandel 2024 (DAS 2024) 

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climate together” and online consultations were held to gather input, focusing on seven 
clusters of climate goals and measures. Notably, efforts in late 2023 and throughout 
2024 involved discussion and collaboration with regional representatives and citizens 
from diverse regions in Germany. The process aimed to incorporate comprehensive 
feedback and suggestions from stakeholders and the public, especially youth, to the 
adaptation strategy regarding climate impacts, personal precautions and future 
expectations. 

The inclusion of ‘just resilience’ as a guiding principle: The NAF of Ireland 

Ireland’s new National Adaptation Framework (NAF) 86, developed in line with the 
requirements of Ireland’s Climate Action and Low Carbon Development Acts, identifies 
community and public engagement and just resilience” as new NAF guiding 
principles. The aim is to ensure that adaptation is not just effective but also just, 
ethical, and sustainable. The principles-based approach serves to guide decision-
makers, communities, and organisations in adapting effectively and equitably to a 
changing climate. 

Under the new NAF, all sectoral adaptation plans must undertake statutory public 
consultation processes. At local authority level, the development of all Local Authority 
Climate Action Plans (LACAPs) under the Climate Act also required consultation 
processes with adjoining local authorities. A statutory public consultation was 
undertaken as each LACAP was developed and these plans were put to the local 
authority’s elected members for approval. Public Participation Networks (PPNs) were 
established in 2014 in each local authority following the enactment of the Local 
Government Reform Act 2014. 

Ireland’s new NAF also contains an action to drive community outreach, educating the 
public on risks, opportunities and impacts of climate change. The National Dialogue on 
Climate Action (NDCA) helps individuals and communities to take part in climate action 
through community engagement, capacity building and networking. Extensive 
stakeholder engagement, the funding of impactful climate actions and public surveys 
are some of the ways the NDCA achieves this. 

86 Ireland’s National Adaptation Framework (NAF) 

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12 Examples of funding of climate related projects 

12.1 Example of project funded by the Innovation Fund 

The Innovation Fund (IF) is one of the world’s largest funding programmes for the 
deployment of net-zero and innovative technologies in EEA countries. Financed by 
revenues from the EU Emissions Trading System (EU ETS), the Innovation Fund is one of 
the EU’s funds for climate policy, focusing on energy, industry and mobility and 
fostering competitiveness. 

The IF aims to create financial incentives for companies and public authorities to invest 
in cutting-edge, low-carbon technologies and support the EU’s transition to climate 
neutrality. Thanks to the EU ETS and assuming a carbon price of EUR 75/tCO2, it is 
estimated that the Innovation Fund will have around EUR 40 billion available between 
2020 and 2030. The IF has already awarded around EUR 6.5 billion to more than 115 
innovative projects through its previous calls for proposals. 

Small-Scale, PIONEER 

  Rome, Italy 

  EUR 3.1 million 

The Innovation Fund has awarded a EUR 3.1 million grant to the Small-scale project, 
Pioneer in the 2022 Small-scale call for proposals. This globally one-of-a-kind project 
is repurposing over 750 second-life electric vehicle (EV) batteries into a single, safe, 
energy storage unit to support the electricity demands of Rome’s Fiumicino 
International Airport. 

These EV batteries are connected to a 55 0000 solar panel plant that’s spread across 
340 000 m² of airport land that will generate more than 30 gigawatt-hours (GWh) each 
year to power airport operations and support the broader airport grid. The project 
became operational in June 2025, already integrating renewable energy and reducing 
the reliance on a power plant fuelled by natural gas. Over its first 10 years of 
operation, the system is expected to avoid emitting more than 16 000 tonnes of CO2 
equivalent. 

The exclusive use of second-life batteries stands out as an example of European 
Innovation as there are no other projects of this size that use second-life batteries 
from multiple Original Equipment Manufacturers (OEMs). This project not only 
follows the European strategic action plan for batteries but implements key 
principles set in the Clean Industrial Deal regarding circularity and recycling capacity, 
electrification, and decarbonisation. 

Volta Large-Scale Pilot 

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  Dubí, Czechia 

  EUR 12.2 million 

With a EUR 12.2 million grant secured in the 2022 Innovation Fund Lage-Scale call, 
the Pilot project, Volta, will significantly reduce carbon emissions and decrease the 
dependency on fossil fuels in one of Europe's’ key energy-intensive industries, flat 
glass manufacturing. 

Crucial to Europe's economy, flat glass manufacturing serves construction, furniture, 
transportation, technology, and other products and services. Located in Dubí, 
Czechia, the project houses a cutting-edge hybrid furnace functioning on electric 
melting and oxy-gas combustion technology. The project became operational in 2025 
and once fully implemented, the project will cut over 192 500 tonnes of CO₂ over a 
10-year period and while reducing Europe’s natural gas consumption by more than 10 
terawatt-hours (TWh). 

In line with the REPower EU plan, this highly scalable project can further increase 
decarbonisation and the clean energy transition for critical sectors like construction 
and automotive. Consistent with the Clean Industrial Deal, this project promotes 
competitiveness and sets the tone for sustainable glass manufacturing. 

CO2LLECT 

  Rüdersdorf, Germany 

  EUR 157 million 

The German-based CO2LLECT project has been awarded a EUR 157 million grant 
from the Innovation Fund in the 2023 call for Net-zero Technologies (IF23 Call). This 
large-scale carbon capture and storage (CCS) project aims to achieve negative 
emissions at Germany’s largest cement plant in Rüdersdorf. 

By deploying innovative adsorptive-cryogenic separation technology, captured CO2 
will be liquified and transported by rail to a CO2 hub in Northern Germany. It will then 
be shipped to an offshore storage site off the coast of Denmark and stored beneath 
the seabed of the North Sea. To further reduce the greenhouse gas emissions in the 
combustion process, the project will inject green hydrogen that will be produced by 
an electrolyser on site. Located in the water-scarce area of Brandenburg, the project 
has included an onsite water treatment plant to enhance water circularity and lower 
electricity consumption. Over the first ten years of operation, the project is expected 
to cut around 12.6 million tonnes of CO2 equivalent.   

Decarbonising a hard-to-abate sector like cement production aligns the project with 
several key policy priorities of the EU, such as the Net-Zero Industry Act (NZIA), the 
Carbon Border Adjustment Mechanism (CBAM) and the Clean Industrial Deal (CID). 
The project is expected to support the region by creating skilled job opportunities. 
Furthermore, it aims strengthen Germany’s CO2 infrastructure, thereby fostering 

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replication and boosting the growth of value chains across various industrial sectors 
in Europe. 

12.2 Example of project funded by the Modernisation Fund 

The Modernisation Fund 87 supports the modernisation of the energy systems and the 
improvement of energy efficiency in 13 lower-income EU Member States (Bulgaria, 
Croatia, Czechia, Estonia, Greece, Hungary, Latvia, Lithuania, Poland, Portugal, 
Romania, Slovenia and Slovakia). Established in 2018 for the 2021-2030 period, the fund 
aims to help the beneficiary Member States achieve their climate and energy targets 
and the objectives of the European Green Deal. 

Financed by the EU Emissions Trading System (EU ETS), the fund primarily focuses on 
six priority areas: renewable energy generation and use, renewable heating and cooling, 
energy efficiency across sectors, energy storage and network modernisation, low-
income household support, and just transition in carbon-dependent regions. A 
maximum of 20% can be allocated toward non-priority investments that reduce 
greenhouse gas emissions but do not fall in the priority areas. 

The Modernisation Fund operates under the responsibility of the beneficiary Member 
States, who work in close cooperation with the European Investment Bank (EIB) and the 
Commission. Together, the Commission, the EIB and 16 EU Member States compose 
the Investment Committee for the Modernisation Fund (Investment Committee) that 
approves the investments, while the EIB examines Member State proposals. 

Smart energy infrastructure scheme 

Poland 

EUR 222 million 

The Modernisation Fund has disbursed EUR 222 million to Poland to implement a 
scheme dedicated to the roll-out of smart meters. 

The scheme benefits Distribution System Operators and supports the development of 
intelligent energy infrastructure. 

Activities supported include the purchase and installation of smart meters, the 
modernisation and adaptation of the energy network infrastructure allowing for the 
service and management to ensure the proper use of the meters. The investment also 
allows for the creation of software for conducting network efficiency analyses, reports 
on savings, statistics, losses and to enable the adaptation of the system to the central 
energy market information system. 

Initially confirmed in the Spring of 2021 for an amount of EUR 44 million, the 
investment was subject to a subsequent disbursement decision amounting to an 

87 https://climate.ec.europa.eu/eu-action/eu-funding-climate-action/modernisation-fund_en 

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additional EUR 178 million at the end of 2022. A total of 77% of the support has been 
contracted to the final beneficiaries and 26% of the funds have been paid out. Three 
calls for proposals were launched and 9 agreements were concluded with final 
beneficiaries. 

Energy-efficient production of technologies in EU-ETS manufacturing companies 

  Lithuania 

  EUR 22 million 

In the beginning of 2022, Lithuania received 22 million for a scheme to support the 
optimisation, digitalisation and automation of manufacturing processes within 
industrial installations covered by the EU ETS. The aim is to reduce electricity 
consumption and material use. Projects will receive equipment upgrades, 
improvements in controls and sensors, and software upgrades, which will in turn, 
improve process efficiency, heat recovery and modernisation of the systems. 

For this scheme, two calls for proposals in 2022 and 2023 respectively were held. 
Currently, 53% of the funds been contracted to end beneficiaries, and the awarded 
projects are currently under construction. 

12.3 Examples of projects funded by the Recovery and Resilience Facility 

The Recovery and Resilience Facility (RRF), established as the centrepiece of 
NextGenerationEU, is a major source of EU-level climate-related financing. By requiring 
Member States to dedicate at least 37% of their national recovery plans to climate 
investments and reforms, the RRF mobilises substantial resources for clean energy, 
sustainable mobility, energy efficiency, and climate adaptation. Overall, Member States 
have committed over 42% of total estimated costs (or around EUR 275 billion) to 
support the climate objective. Beyond its direct financial contribution, the national 
Recovery and Resilience Plans (RRPs) introduce structural reforms that foster an 
enabling environment for private investment and increase its impact. This combination 
of grants, loans, and reforms makes the RRF a pivotal instrument in advancing the EU’s 
green transition. 

Although the Recovery and Resilience Facility is a temporary instrument set to conclude 
by end-2026, it has already generated significant momentum in advancing the EU’s 
climate agenda. Progress in implementing measures related to the green transition has 
been good overall, with nearly 50% of green milestones and targets assessed as 
satisfactorily fulfilled or reported as completed by 1 September 2025. 

‘Rail – efficient network’ of the Federal State 

  Belgium 

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  EUR 259 million 

The Recovery and Resilience Facility supports the upgrade of 32 rail sections, 
modernisation of 18 dedicated rail freight infrastructures, removal of 9 infrastructure 
bottlenecks in Brussels and on the line Brussels-Luxembourg, and development of an 
IT module for traffic management. 
More than 50 interventions to upgrade rail infrastructure have already been 
completed and the investment is expected to be fully completed by June 2026. 

Energy renovation on residential buildings 

  Greece 

  EUR 1 138 million 

The investment aims to renovate more than 100 000 residences and provide for 
targeted support to energy-poor residences. 

The investment aims to improve isolation and install more energy efficient heating 
systems, while also contributing towards the digitalisation of final energy 
consumption through energy management systems. The investment also covers 
multi-storey buildings, including apartments as well as common areas of the building 
accessible to all residents. The renovations will yield significant primary energy 
savings (on average 30%), thereby reducing the electricity and heating bills of the 
households.  

For this scheme, two calls for proposals in 2022 and 2023 respectively were held and 
the completion of the energy efficiency renovations is ongoing. 

Modernisation of electricity transmission and distribution networks 

  Latvia 

  EUR 80 million 

The general objective of this measure is to contribute to reaching climate neutrality 
objectives by creating a sustainable grid infrastructure in which green technologies 
notably wind may be more easily deployed. It is also expected to contribute to the 
synchronisation of the Baltic electricity systems with continental European networks 
and the objectives and activities of the Baltic Electricity Market Integration Plan. 

The measure consists of direct investment in upgrading the electricity grid, 
developing IT solutions to increase the flexibility and security of the transmission 
system and distribution system and creating among others a national electricity 
market data exchange and storage platform and an automated smart metering 
system. The measure shall also improve the regulatory framework and the enabling 

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conditions to facilitate the deployment of onshore wind energy on state forest land 
and to reduce legal uncertainty for investments in wind power. 

12.4 Examples of project on land and nature 

Bird Park Střimická výsypka 

  Most, Czechia 

EUR 1.2 million 

Just Transition Fund 

Střimická výsypka is the largest NGO-managed bird park in Czechia. It aims to 
transform 251 hectares of coal spoil heap into biodiversity hotspot and flagship 
example of ‘new nature’ on post-mining land. The project was co-financed by citizen 
fundraising. More than 2 thousand donors raised almost EUR 240 000 and 
strengthen public support for transformation of coal regions. 

NBS4Drought 

  Denmark, Germany, Poland, Spain 

EUR 7.9 million 

  Horizon Europe 

The NBS4Drought project aims to demonstrate the cost-effectiveness of wetland-
based nature-based solutions (NbS) for sustainable water management, particularly 
in alleviating the impacts of extreme droughts, and to expedite their widespread 
adoption across Europe. 7 different wetland showcases from 5 distinct bioclimatic 
zones in Europe have been selected in rural, peri-urban (including an island), and 
urban environments. Each intervention is tailored to enhance the area’s resilience 
against droughts by increasing water retention capacity, improving biodiversity and 
ecosystem services, and enhancing water treatment efficiency for safe water reuse. 

LILAS4SOILS 

Italy, Spain, Greece, Portugal, France, Israel 

EUR 11.5 million 

141 

 
 
 
 
 
 
 
 
 
 
 
 
  Horizon Europe 

LILAS4SOILS will put in place 5 Living Labs (LLs) in 6 countries to co-create Carbon 
Farming solutions within farmers, agri-food businesses, researchers and local 
authorities, (peatland management, agroforestry, livestock and manure 
management, and nutrient management, maintaining soil organic carbon) to be 
implemented in 85-100 demo-sites. The impact on soil carbon sequestration and 
environmental co-benefits will be assessed through homogeneous Monitoring, 
Reporting and Verification (MRV) technologies.  

Soria Forest Adapt 

Soria, Spain 

EUR 0.9 million 

LIFE 

The LIFE SORIA FORESTADAPT project strengthens the resilience of southern 
European forests to climate change by integrating adaptation into forest 
management and afforestation plans. The project will update planning for 200 
thousand hectares of public forest in the long term and will also influence 
afforestation programmes on private lands, especially agricultural land. 
The project updated forest plans, creates a practical handbook, included adaptation 
criteria in forest certification standards, and built a business platform to work on 
adaptation measures associated with carbon compensation projects. The aim is to 
expand the model to the rest of the Castile and León region, and then to the rest of 
Spain and Southern Europe. 

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AdaptCalaMillor 

Spain 

EUR 1.4 million 

LIFE 

Objective of the project is to promote a long-term adaptation strategy for the beach 
system and urban environment of Cala Millor Bay in Maiorca, which bridges both 
governance gaps and identifies concrete solutions to shoreline erosion and the loss 
of beach environmental services. 

12.5  Examples of project on preparedness and resilience 

Archiclima 

Poland 

EUR 1.3 million 

LIFE 

Objective of the project: to climate-proof different large-scale commercial buildings 
across Poland (shopping centres, concert halls, airports etc.) by design. Great 
replication potential: it will develop a replicable methodology as well as a catalogue 
of adaptation examples and detailed solutions to climate-proof a broader range of 
buildings. 

RESIST 

Portugal, Spain, Finland, Denmark 
EUR 25 million 
  Horizon Europe 

RESIST project, part of the EU Adaptation Mission, will increase resilience and 
accelerate the transformation of climate-vulnerable EU regions. It will engage 12 
European regions with different socioeconomic profiles that will test adaptation 
solutions to 5 key climate challenges: floods, droughts, heatwaves, wildfires, and 
soil erosion. For example, in Portugal, the project is testing new approaches to 
landscape management that enhance forest fire resilience, strengthens natural 
capital, and supports rural economies. By leveraging quintuple helix partnerships 
that involve academia-business-government-public collaboration, the project will 
promote a participative approach to resilience. RESIST actively demonstrates 100 
innovative solutions across governance, social frameworks, Nature-based solution, 
engineering and digital technologies, to accelerate adaptation efforts. It pioneers the 

143 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
development of digital twins tailored to all the demonstration areas to empower 
informed decision-making and long-term planning. 

12.6 Examples of project on society and communities 

Archiclima 

Leuven, Belgium 

EUR 1.3 million 

LIFE 

Objective: to deploy nature-based solutions to urban climate change adaptation and 
test an integrated approach to urban CCA that draws on the efforts of multiple 
stakeholders, including local government, citizens, universities, and private actors. 
In pursuing these objectives, LIFE PACT aims to bring to life the European Climate 
Pact which calls on stakeholder’s empowerment. 

ASCEND 

France (Lyon) & Germany (Munich) 

EUR 20 million 

  Horizon Europe 

The ASCEND project, part of EU Mission on Climate Neutral and Smart Cities, will 
accelerate the implementation of positive, clean energy districts (PCEDs). 
Specifically, it will deliver two inclusive, affordable PCEDs in Lyon and Munich and 
scale up their replication in eight partnering cities. In the City of Lyon by 2028, the 
PCED area will host more than 19 000m² of retrofitted buildings and 170 000m² of 
new buildings with different uses: housing (including 55% of social or affordable 
housing), offices, shops, restaurants, and bars, etc.   

JUSTNature 

Greece, Malta, Belgium, Italy, Germany, Hungary 

EUR 9.65 million 

Horizon 2020 

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 The JUSTNature project aims to ensure a just transition to low-carbon cities through 
nature-based solutions. It builds on the recognition of disparities driven by income 
and wealth inequalities and considers the right of all citizens to ecological space - 
including clean air, thermal comfort and biodiversity. To address these issues, the 
project co-designs new approaches which conserve natural ecosystem values and 
functions to provide benefits to people. 

Nature-based solutions are activated in 7 European cities, with a specific focus on 
social cohesion of various groups of income and age. Examples of measures include 
preservation and expansion of green spaces, urban green corridors and parks, an 
increase of permeable surfaces, green roofs and community gardens, addressing 
climate-related issues of air pollution, urban heat island, rainwater infiltration and 
human well-being. Citizen engagement including vulnerable groups and multi-
stakeholder co-creation and design processes are enabled throughout the project to 
ensure inclusive governance. 

12.7 Examples of projects on international initiatives 

Green Blue Alliance for the Pacific and Timor-Leste 

Pacific islands 

EUR 500 million 

Dual-purpose project EU’s contribution projected to amount to EUR 500 million for 
the period 2021-2027. The initiative builds on the shared ambition of the two regions 
for a low carbon and resilient global economy by 2050. The initiative includes:  

•  protecting climate change resilience of Pacific Islands’ ecosystems.  
•  Timor-Leste: planting 4 million trees with a sustainability strategy and 

including carbon credits certification to provide income for communities.  

•  Solomon and Papua New Guinea: Global Gateway projects for the 

development of water and wastewater infrastructure. 

•  Papua New Guinea: upgrading rural roads, contributing to safer and more 

environmentally friendly transport.  

•  Pacific Solutions: an integrated ocean management project to sustain 

livelihoods today and into the future. 

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SAFE4ALL, ALBATROSS, and ACACIA 

Sub-Saharan Africa 

EUR 15 million 

  Horizon Europe 

The projects are jointly strengthening climate resilience across Ghana, Kenya, 
Tanzania, Zimbabwe, Madagascar, and South Africa by generating locally relevant 
knowledge, tools, and services to support climate adaptation. The activities 
includes: 
• Climate services and decision support: developing atlases, localized forecasts, 
and digital platforms to anticipate droughts, floods, and cyclones, while tailoring 
information to the needs of local communities, farmers and policymakers. 
• Nature-based solutions: integrating socio-economic, ecosystem, and climate 
data to design adaptation strategies that harness natural processes for resilient 
agriculture, water, and land management. 
•  Local action and empowerment : co-creating solutions with local actors, 
ensuring that climate services translate into effective policies from migration 
strategies to livelihood security. 

146