In October 2014, the European Council agreed on a 2030 Framework for climate and energy which aimed to help the EU achieve a more competitive, secure and sustainable energy system, and contribute to climate action to meet commitments under the Paris Agreement. In order to encourage private investment in new pipelines, electricity networks, and low-carbon technology, the 2030 Framework set EU-wide targets and policy objectives for the period between 2020 and 2030, particularly:
At least 40% cuts in greenhouse gas emissions from 1990 levels
At least 27% share for renewable energy
At least 27% improvement in energy efficiency
In order to meet the at least 40% cuts in greenhouse gas emissions, EU emissions trading system (ETS) sectors will cut emissions by 43% (compared to 2005) and non-ETS sectors will cut emissions by 30% (compared to 2005). Sectors falling outside the EU emissions trading system, including transport, buildings, agriculture, non-ETS industry and waste, account for almost 60% of total domestic EU emissions.
The commitment to meet the EU-wide 30% emissions cut in non-ETS sectors by 2030 is translated into binding annual greenhouse gas emission targets for each Member State for the period 2021–2030 via the Effort Sharing Regulation. Since the EU recognises the different capacities of Member States to take climate action, the Effort Sharing Regulation sets different national targets according to gross domestic product per capita across Member States. In addition, national targets are adjusted to reflect cost-effectiveness for those Member States with an above average GDP per capita.
On 14 May 2018, the Council of the EU has adopted a binding annual greenhouse gas emission reduction targets for EU Member States from 2021 to 2030 - the Effort Sharing Regulation. Particular national targets range from 0% to –40% compared with 2005 levels, depending on the country and include linear reduction trajectories setting annual reductions for 2021-2030. Luxembourg and Sweden are required to cut their greenhouse gas emission by 40%, Bulgaria by 0%. The Effort Sharing Regulation together with the revised emissions trading system and the LULUCF Regulation (on the integration of land use, land use change and forestry) are the pillars the EU's 2030 climate and energy framework.