Department of Energy and Climate Change

In December 2008, EU leaders and the European Parliament agreed a unilateral commitment to reduceing greenhouse gas emissions by 20 percent (compared to 1990 emissions) by 2020. The EU has made a commitment to increase this target to 30 percent for the period beyond 2012 if there are comparable targets from other developed countries and adequate action by developing countries.

Across the EU, the majority of the 20 percent reduction will be carried out domestically, and largely down to renewables, energy efficiency and ETS targets. This is calculated from various sources, including: the Commission's Climate and Energy Package Impact Assessment, the Commission's RES Impact Assessment and Energy Efficiency Action plan.

The package includes:

• The EU Emissions Trading System (EU ETS) directive is the EU's main policy mechanism for reducing CO₂ emissions from energy intensive sectors. The Directive will take effect from 2013 and was significantly revised for Phase III to include an EU wide cap which will decline each year to 2020 and beyond at a rate of 1.74% of the average annual level of the Phase II cap. This means that the EU ETS will deliver two-thirds of the first 3 UK carbon budgets. This equates to 21% reduction by 2020 compared to the 2005 verified emissions baseline under the EU ETS.
• A Greenhouse Gas Effort Sharing Decision sets targets for reductions in those sectors of member states’ economies not covered by the EU ETS – in the most part residential and transport. For the UK, this equates to a reduction in emissions in the non-ETS, equivalent to 16 percent below 2005 levels by 2020. For the EU, this is approximately 10%.
• A Renewables Directive sets targets for each member state for the proportion of renewable energy generation by 2020. The EU has a 20% renewables target by 2020. The UK’s legally binding target is 15%. The Renewables Directive also set every Member State a target of supplying 10% of transport fuel from renewable sources by 2020. 
• The Directive on the geological storage of CO2 outlines a regulatory framework for the safe capture, transport and storage of carbon dioxide in the EU. Up to 300 million allowances from the new entrants reserve of the EU ETS will be used to support the demonstration of carbon capture and storage (CCS) and innovative renewable technologies.

More information about the EU Climate & Energy Package:

• European Commission webpages on the Climate & Energy Package
• EU 2020 Climate and Energy Package legislation - On 5 June 2009, the Official Journal of the European Union published the set of legal texts implementing the measures adopted by the European Parliament in April 2009. The UK is now working on transposing these changes into UK law. Please refer to our EU ETS Phase III page for more details. The greenhouse gas effort-sharing decision does not need to be transposed.
• EU Climate & Energy Package Overarching Impact Assessment (April 2009)