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Emissions of all 6 gases included in the Kyoto Protocol are covered: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorcarbons (HFCs), perfluorcarbons (PFCs) and sulfur hexafluoride (SF6).

Each Member State will contribute to this effort according to its relative wealth (GDP/capita), with national emission targets ranging from – 20% for the richest Member States to + 20% for poorer ones in 2020 compared with 2005 levels. Less wealthy countries will be allowed to emit more than they did in 2005 in these sectors because their relatively higher economic growth is likely to be accompanied by increased emissions. Nevertheless positive targets still represent a limit on emissions and a reduction effort will be required in all Member States.

Binding annual targets for the period 2013-2020

Member States shall limit their greenhouse gas emissions between 2013 and 2020 according to a linear trajectory with binding annual targets following a straight line between a defined starting point in 2013 and end point in 2020.

This will ensure a gradual move towards the 2020 targets in sectors where changes take time, such as buildings, infrastructure and transport.

Member States with a negative target shall ensure that emissions in 2013 do not exceed average annual emissions for the period 2008-2010. Those with a positive target shall ensure that emissions in 2013 do not exceed a level defined by a linear trajectory, starting in 2009, based on its average annual emissions for the period 2008-2010 and ending in 2020 at the target for that Member State.

Flexibility in meeting targets

To increase the cost-effectiveness of their policies and measures, Member States are allowed flexibility in meeting their targets in 2013-2020:

•  Within the Member State itself
  • Overachievement during 2013-2019 can be carried over to subsequent years, up to 2020;
  • Emission allocation of up to 5% during 2013-2019 may be carried forward from the following year (Article 3.2 of the Decision).
• Between Member States
  • During 2013-2019 Member States may transfer part of their annual emission allocation for a given year to other Member States under certain conditions (Articles 3.4 and 3.5)
• Use of Joint Implementation / Clean Development Mechanism (JI/CDM) credits can be used under certain quantitative and qualitative conditions (Article 5).

Monitoring of the Member States' results and corrective measures

A strong monitoring and compliance system will be in place at the Community level for monitoring Member State action and help them make any necessary corrective measures if they fail to meet their targets. Member States will have to report (Article 6.1) on annual emissions, the use, geographical distribution, and types of JI/CDM credits and qualitative criteria applied, projected progress towards meeting their emission limits in 2013-2020 and information on planned additional national policies and measures to meet commitments beyond those in the Decision.

If the greenhouse gas emissions of a Member State exceed the annual emission allocation taking into account the flexibilities, corrective measures will apply (Article 7).

Possible changes as a consequence of international climate negotiations

The EU is committed to increasing its 20% reduction target to a 30% reduction in the context of a fair and ambitious global agreement, if other developed countries commit themselves to comparable reductions, and if economically more advanced developing countries contribute adequately according to their responsibilities and respective capabilities.

In case of the approval of such an agreement, the Commission will submit a report assessing a wide range of issues considered important for adjusting to a higher reduction target and a legislative proposal to the European Parliament and to the Council, as appropriate (Article 8).

The process for a possible future inclusion of removals and emissions from land use, land use change and forestry (LULUCF) in the Community reduction commitment depends on the progress towards and results of the international agreement on climate change (Articles 8 and 9 of Decision 406/29/EC and Article 28 of Directive 2009/29/EC). As part of the report the Commission is required to assess different modalities for including land use, land use change and forestry in the EU's reduction commitment.