For the first time, all EU countries must now reduce GHG emissions with targets ranging between 10 and 50%. The 2030 targets for each member state are based on GDP per capita and cost-effectiveness. Member states will also have to ensure every year that they do not exceed their annual GHG emission allocation.

The law strikes a balance between the need for EU countries to be flexible to achieve their targets while ensuring a just and socially fair transition, and the need to close loopholes so the overall EU reduction target is met. For this reason, there are limits on how much emissions member states can save from previous years, and borrow from future years as well as on how much they can trade allocations with other member states.

In order to be able to hold member states accountable, the Commission will make information public on national actions in an easily accessible form, as requested by Parliament.

"With this law, we take a major step forward in delivering on the EU's climate goals. The new rules for national emission cuts ensure that all member states contribute and that existing loopholes are closed. This allows us to send a clear signal that the EU is serious about being the global champion for a competitive and efficient climate agenda”, says rapporteur Jessica Polfjärd (EPP, SV), after the vote.

The text now also has to be formally endorsed by Council. It will then be published in the EU Official Journal and enter into force 20 days later.

The Effort Sharing Regulation is part of the ”Fit for 55 in 2030 package”, which is the EU's plan to reduce GHG emissions by at least 55% by 2030 compared to 1990 levels in line with the European Climate Law.