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The Regulation on binding annual emission reductions by Member States from 2021 to 2030, also known as the Effort Sharing Regulation, sets  targets for those sectors of the economy that fall outside the scope of the EU Emissions Trading System (EU ETS). These sectors, including transport, buildings, agriculture, non-ETS industry and waste, account for almost 60% of the EU's total domestic emissions.

The national targets for 2030 range from 0% to –40% compared with 2005 levels, depending on the country. Collectively, they will deliver a 30% reduction in EU emissions from the sectors covered by 2030.

The basic framework of the new regulation is similar to the system for the period 2013-2020. Member States will have emission reduction trajectories that will determine their annual allocations for 2021-2030.

Two new flexibilities allow Member States to use emission allowances under the EU ETS and credits from the land use sector to contribute to a limited extent towards achieving their targets.

In addition, a limited new reserve will be set up for lower income Member States that exceed their national targets for 2013-2020 and face challenges in meeting their new targets, on the condition that the EU as a whole achieves the 30% reduction target for 2030.

The Effort Sharing Regulation is one of the pillars of the EU's 2030 climate and energy framework. Together with the revised ETS directive and the LULUCF Regulation, it creates a binding legal framework for the EU’s efforts to reduce overall greenhouse gas emissions by at least 40% by 2030, compared to 1990 levels.

Emissions from the sectors covered by effort sharing will also be tackled through other EU legislation, for example on reducing emissions from road transport and improving energy efficiency.

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• Effort sharing