Workshop Report March 2011 Budva ... - Renanetwork.org

Workshop Report on the EU Climate and Energy package (Focus on Effort Sharing, Renewables and CCS1.5 Effort SharingThe Greenhouse Gas (GHG) Effort Sharing Decision was agreed as part of the EU 2020 Climate and EnergyPackage of measures in December 2008.The Decision sets EU Member State targets for reductions in those sectors of their economies not covered bythe EU Emissions Trading System – in the most part residential and transport.The Effort-Sharing decision includes: Each member State has a percentage reduction target for 2020, which range from -20% to +20% on 2005levels, depending on GDP per capita A binding annual trajectory from 2013 to 2020, keeping the EU on track to meet emissions reductions targetsover the eight-year period Provisions to change member state targets in the event of an international agreement A compliance factor against the annual trajectory (set at 1.08),putting a price on any failure by member states to meet theirtargets by forcing that Member State to abate more the next year Monitoring and evaluation provisions Flexibility mechanisms to help Member States meet their targetscost effectively. These include:o the ability to bank and borrow against the annualtrajectoryo use of project credits, such as the Clean DevelopmentMechanism (CDM): Member State access tointernational project credits to meet their targets islimited (annually) to 3% of Member States’ 2005emissions in the non-ETSo the ability to trade both project credit allowance and domestic over-compliance between MemberStates.Member States themselves decide which policy measures they will use to meet their targets.4