The European Parliament has passed legislation that will require EU member states to cut greenhouse gas emissions by the year 2030.
According to ESG Today, the legislation – which passed in a 486-132 vote – also raises the EU’s overall 2030 emissions reduction target to 40% compared to 2005 levels.
The new law will for the first time require all member states to cut emissions by 2030 compared to the 2005 levels, with targets ranging from 10%-50%, with goals based on GDP per capita and cost-effectiveness.
The regulation will also ensure that member states do not exceed their annual GHG emissions allocation, and limits the emissions that member states can save from previous years, borrow from future years or trade with other member states.
MEP Jessica Polfjärd said, “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.”
The regulation will now move to the formal endorsement by the full EU Council.
Earlier this week, the EU’s financial regulators revealed they are planning to carry out a system-wide analysis of the financial sector’s climate-related risk resilience.
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