On 14 July 2021, the Commission proposed amendments to the Regulation 2018/842 – currently called by many the "Effort Sharing Regulation". Covering more about 60 % of the EU greenhouse gas emissions, this regulation and its reform are an essential elements of the Fit for 55 package. As a contribution to this debate, a paper by Ecologic Institute presents amendments to the Commission's proposal. Amendments are in particular intended to help ensure that all EU climate policy instruments support achieving the EU's 2050 climate neutrality target and net negative emissions afterwards.
The Climate Action Regulation (CAR aka Effort Sharing Regulation) regulates 57 % of the EU's greenhouse gas emissions. Consequently, the EU cannot achieve its new climate targets without major contributions from the sectors regulated by the CAR. This makes reforming the CAR one of the EU's most important legislative processes in 2021. There are various ideas about how to turn the CAR into a strong driver for achieving the EU's climate targets. This Ecologic Institute paper discusses these ideas, and makes proposals for reform.