Germany is set to acquire 22 million emissions allowances as it failed to meet its 2020 climate targets under the EU's effort-sharing scheme. The country aimed for a 14% reduction in emissions compared to 2005 levels. Germany's environment minister has approached other states that surpassed their targets in search of potential allowances.
Overall, the EU successfully achieved its 2020 climate targets, with 21 member states reaching their national objectives. However, Bulgaria, Cyprus, Finland, Germany, Ireland, and Malta fell short of the thresholds and may need to purchase emissions quotas from other countries to fulfil their obligations. While Germany managed to achieve its self-imposed climate reduction goal of 40% (compared to 1990 levels), largely due to the impact of the pandemic, it struggled to achieve sufficient emissions reductions in the transport, buildings, and agricultural sectors to meet the EU sharing scheme target.
Several Eastern European countries reportedly possess surplus allowances that are set to expire in 2021 and cannot be transferred. The availability of such allowances is expected to decrease as the post-pandemic recovery progresses. Greenhouse gas emissions limits are imposed across the EU through the Emissions Trading System (ETS), covering power generation, energy-intensive industries, and civil activities. Emissions from non-ETS sectors, including transport, buildings, waste, some smaller industries, and agriculture, are limited through agreed member state targets under the EU's Effort Sharing Scheme. The EU's blended 2020 reduction target was 10% compared to 2005 levels.
