Regulation (EU) 2023/839 of the European Parliament and of the Council of 19 April 2023 amending Regulation (EU) 2018/841 as regards the scope, simplifying the reporting and compliance rules, and setting out the targets of the Member States for 2030, and Regulation (EU) 2018/1999 as regards improvement in monitoring, reporting, tracking of progress and review (Text with EEA relevance)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 192(1) thereof,

Having regard to the proposal from the European Commission,

After transmission of the draft legislative act to the national parliaments,

Having regard to the opinion of the European Economic and Social Committee (1),

Having regard to the opinion of the Committee of the Regions (2),

Acting in accordance with the ordinary legislative procedure (3),

Whereas:

(1) The Paris Agreement, adopted on 12 December 2015 under the United Nations Framework Convention on Climate Change (UNFCCC) (the ‘Paris Agreement’), entered into force on 4 November 2016. The Parties to the Paris Agreement have agreed to hold the increase in the global average temperature well below 2 °C above pre-industrial levels and to pursue efforts to limit the temperature increase to 1,5 °C above pre-industrial levels. That commitment has been reinforced with the adoption under the UNFCCC of the Glasgow Climate Pact on 13 November 2021, in which the Conference of the Parties to the UNFCCC, serving as the meeting of the Parties to the Paris Agreement, recognises that the impacts of climate change will be much lower at a temperature increase of 1,5 oC, compared with 2 oC, and resolves to pursue efforts to limit the temperature increase to 1,5 oC.

(2) In its 2019 Global Assessment Report on Biodiversity and Ecosystem Services, the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES) provided the latest scientific evidence on the ongoing worldwide erosion of biodiversity. The communication of the Commission of 20 May 2020 on an EU Biodiversity Strategy for 2030 – Bringing nature back into our lives (the ‘EU Biodiversity Strategy for 2030’) steps up the Union’s ambition regarding the protection and restoration of biodiversity and well-functioning ecosystems. Forests and healthy soils are extremely important for biodiversity, but also for the purification of air and water, carbon sequestration and storage, and the provision of sustainably sourced long-lived wood products. The nature and function of forests is highly variable across the Union, with certain types of forests being more vulnerable to climate change due to direct impacts, such as drought, temperature-induced forest dieback or changes in aridity. Deforestation and forest degradation contribute to the global climate crisis as they increase greenhouse gas emissions, inter alia through associated forest fires, thus permanently removing carbon sink capacities, decreasing the climate change resilience of the affected areas and substantially reducing their biodiversity. Soil organic carbon and carbon pools of deadwood, much of which feed the soil carbon pool, are also of particularly high relevance in a number of reporting categories, for both climate action and biodiversity protection. The communication of the Commission of 16 July 2021 on a new EU Forest Strategy for 2030 (the ‘New EU Forest Strategy for 2030’) and the communication of the Commission of 17 November 2021 on the EU Soil Strategy for 2030 – Reaping the benefits of healthy soils for people, food, nature and climate (the ‘EU Soil Strategy for 2030’) both recognised the need to protect and improve the quality of forests and soil ecosystems in the Union, and to encourage reinforced sustainable management practices that can enhance carbon sequestration and strengthen the resilience of forests and soils in light of the climate and biodiversity crises. Peatlands are the largest terrestrial store of organic carbon, and improving peatland management and protection is an important aspect contributing to climate change mitigation, and to the protection of biodiversity and of the soil against erosion.

(3) The communication of the Commission of 11 December 2019 on the European Green Deal (the ‘European Green Deal’) provides a starting point for the achievement of the Union’s climate-neutrality objective at the latest by 2050 and the aim of achieving negative emissions thereafter laid down in Article 2(1) of Regulation (EU) 2021/1119 of the European Parliament and of the Council (4). It combines a comprehensive set of mutually reinforcing measures and initiatives aimed at achieving climate neutrality in the Union by 2050, and sets out a new growth strategy that aims to transform the Union into a fair and prosperous society, with a modern, resource-efficient and competitive economy where economic growth is decoupled from resource use. It also aims to protect, conserve and enhance the Union’s natural capital, and protect the health and well-being of citizens from environment-related risks and impacts. At the same time, that transition has gender equality aspects as well as particular impacts on some disadvantaged and vulnerable groups, such as older people, persons with disabilities and persons with a minority racial or ethnic background. It must therefore be ensured that the transition is just and inclusive, leaving no one behind.

(4) Tackling climate and environmental-related challenges and reaching the objectives of the Paris Agreement are at the core of the European Green Deal. The European Parliament called, in its resolution of 15 January 2020 on the European Green Deal (5), for the necessary transition to a climate-neutral society by 2050 at the latest and, in its resolution of 28 November 2019 on the climate and environment emergency, declared a climate and environment emergency (6). The necessity and the value of the European Green Deal have only grown in light of the very severe effects of the COVID-19 pandemic on the health and economic well-being of the Union’s citizens.

(5) It is important to ensure that measures taken to meet the objectives of this Regulation are pursued in line with the objective of promoting sustainable development as set out in Article 3 of the Treaty on European Union (TEU), taking into account the UN Sustainable Development Goals, the Paris Agreement and the ‘do no significant harm’ principle, where relevant, within the meaning of Article 17 of Regulation (EU) 2020/852 of the European Parliament and of the Council (7).

(6) The Union committed to reducing the Union’s economy-wide net greenhouse gas emissions by at least 55 % compared to 1990 levels by 2030 in the updated nationally determined contribution submitted to the UNFCCC Secretariat on 17 December 2020.

(7) Through the adoption of Regulation (EU) 2021/1119, the Union has enshrined the objective of achieving a balance between anthropogenic economy-wide emissions by sources and removals by sinks of greenhouse gases domestically within the Union by 2050 and, as appropriate, of achieving negative emissions thereafter in legislation. That Regulation also establishes a binding Union domestic reduction target for net greenhouse gas emissions (emissions after deduction of removals) of at least 55 % compared to 1990 levels by 2030. All sectors of the economy are expected to contribute to achieving that target, including the land use, land use change and forestry (‘LULUCF’) sector. In order to ensure that sufficient mitigation efforts are deployed in other sectors up to 2030, the contribution of net removals to the 2030 Union climate target is limited to 225 million tonnes of CO2 equivalent. In the context of Regulation (EU) 2021/1119, the Commission reaffirmed in a corresponding statement its intention to propose a revision of Regulation (EU) 2018/841 of the European Parliament and of the Council (8), in line with the ambition to increase net carbon removals to levels above 300 million tonnes of CO2 equivalent in the LULUCF sector by 2030.

(8) In order to contribute to the increased ambition to reduce greenhouse gas net emissions from at least 40 % to at least 55 % compared to 1990 levels, and to ensure that the LULUCF sector makes a sustainable and predictable long-term contribution to the Union climate neutrality objective, binding targets for the increase of net greenhouse gas removals should be set out for each Member State in the LULUCF sector in the period from 2026 to 2030, resulting in a target of 310 millions of tonnes of CO2 equivalent of net removals for the Union as a whole in 2030. The methodology used to establish the national targets for 2030 should take into account the gap between the Union target and the average greenhouse gas emissions and removals from the years 2016, 2017 and 2018, reported by each Member State in its 2020 submission, and reflect the current mitigation performance of the LULUCF sector, and each Member State’s share of the managed land area in the Union, taking into account the capacity of that Member State to improve its performance in the sector via land management practices or changes in land use that benefit the climate and biodiversity. An overachievement by Member States would further contribute to meeting the Union’s climate objectives.

(9) The binding targets for the increased ambition of net greenhouse gas emissions and removals should be determined for each Member State by a linear trajectory. The trajectory should start in 2022 at the average of greenhouse gas emissions reported by that Member State during 2021, 2022 and 2023, and end in 2030 on the target set out for that Member State. In order to ensure the collective achievement of the 2030 Union target while taking into account the interannual variability of the greenhouse gas emissions and removals in the LULUCF sector, it is appropriate to set for each Member State a commitment to achieve a sum of net greenhouse gas emissions and removals for the period from 2026 to 2029 (the ‘budget for 2026 to 2029’) in addition to the national target for the year 2030.

(10) The accounting rules set out in Articles 6, 7, 8 and 10 of Regulation (EU) 2018/841 were designed to determine the extent to which mitigation performance in the LULUCF sector could contribute to the 2030 Union target for reduction of greenhouse gas net emissions of 40 %, which did not include the LULUCF sector. In order to simplify the regulatory framework for that sector, the current accounting rules should not apply after 2025, and the compliance with national targets of the Member States should be verified on the basis of reported greenhouse gas emissions and removals. This would provide methodological consistency with Directive 2003/87/EC of the European Parliament and of the Council (9), with Regulation (EU) 2018/842 of the European Parliament and of the Council (10), and with the new target for reduction of greenhouse gas net emissions of at least 55 %, which includes the LULUCF sector.

(11) On 16 June 2022, the Council adopted a Recommendation on ensuring a fair transition towards climate neutrality (11), where it highlighted the need for accompanying measures and for paying particular attention to supporting those regions, industries, micro, small and medium-sized enterprises, workers, households and consumers that will face the greatest challenges. That Recommendation encourages Member States to consider a set of measures in the areas of employment and labour market transitions, job creation and entrepreneurship, health and safety at work, public procurement, taxation and social protection systems, essential services and housing, as well as, inter alia, with a view to strengthening gender equality, education and training.

(12) Considering the specificities of the LULUCF sector in each Member State, as well as the fact that Member States need to increase their performance to achieve their national binding targets, a range of flexibilities should remain at the disposal of the Member States, including trading surpluses and the extension of forest-specific flexibilities, while respecting the environmental integrity of the targets.

(13) Alternative provisions for natural disturbances (abiotics and biotics) such as fires, pest outbreaks, storms and extreme flood events, in order to address uncertainties due to natural processes in the LULUCF sector, should be available in 2032 to Member States that have done their utmost to take account of any Commission opinion addressed to them in the context of corrective action introduced by this amending Regulation, provided that they have exhausted all other flexibilities at their disposal, put in place appropriate measures to reduce the vulnerability of their land to such disturbances and that the 2030 Union target for the LULUCF sector has been achieved.

(14) Additionally, the diffuse and long-term effects of climate change, as opposed to natural disturbances which are, in essence, more temporary and geographically localised, should be taken into account. This should also make it possible to take into account the legacy effects of past management measures linked to a proportion of organic soils on managed land that is exceptionally high compared to the Union average in a few Member States. The unused amounts of compensation available under Annex VII over the period 2021 to 2030 should be made available for that purpose, based on the submission of evidence to the Commission by the Member States concerned on the basis of the best available scientific knowledge and of objective, measurable and comparable indicators such as the aridity index, within the meaning of the United Nations Convention to combat desertification in those countries experiencing serious drought and/or desertification, particularly in Africa (12), defined as the ratio between mean annual precipitation and mean annual evapotranspiration. The allocation among Member States should be made, in the light of the evidence submitted, on the basis of the ratio between the amount of 50 Mt CO2 equivalent available and the total amount of compensation requested by those Member States.

(15) In order to ensure uniform conditions for the implementation of the provisions of Regulation (EU) 2018/841 concerning the setting out of the annual greenhouse gas emissions and removals for each year in the period from 2026 to 2029 established on the basis of a linear trajectory ending in the target for 2030 for Member States, and for adopting detailed rules on the methodology for evidence concerning long-term impacts of climate change that are beyond the control of Member States and concerning the effects of an exceptionally high proportion of organic soils, implementing powers should be conferred on the Commission. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council (13).

(16) The rules for governance should be set out in a manner promoting early action towards achieving the intermediate Union climate target for 2030 and the economy-wide climate neutrality objective of the Union, following the trajectory for the years 2026 to 2029 introduced by this amending Regulation. The principles laid down in Regulation (EU) 2018/842 should apply mutatis mutandis, with a multiplier calculated in the following way: 108 % of the gap between a Member State’s budget for 2026 to 2029 and the corresponding net removals reported will be added to the figure reported for 2030 by that Member State. In addition, any deficit accumulated by 2030 by each Member State should be taken into account where the Commission submits proposals concerning the post-2030 period.

(17) The Union and the Member States are parties to the United Nations Economic Commission for Europe Convention on access to information, public participation in decision-making and access to justice in environmental matters (14) (the ‘Aarhus Convention’). Public scrutiny and access to justice are essential elements of the democratic values of the Union and tools to safeguard the rule of law.

(18) In order to allow swift and effective action, where the Commission finds that a Member State is not making sufficient progress towards its 2030 target, taking into account the trajectory, the budget for 2026 to 2029 and the flexibilities under this Regulation, a corrective action mechanism should apply to help that Member State get back on the trajectory towards 2030, by ensuring that additional actions are taken, leading to enhanced net greenhouse gas removals.

(19) Greenhouse gas inventories will improve with increased use of monitoring technology and better knowledge. For Member States that improve their methodology of calculating the emissions and removals, a concept of methodological adjustment should be introduced. The following issues, for instance, could trigger a methodological adjustment: changes in reporting methodologies, new data or corrections of statistical errors, inclusion of new carbon pools or gases, recalculation of historical estimates based on new scientific evidence, in accordance with the 2006 IPCC Guidelines for National Greenhouse Gas Inventories, inclusion of new reporting elements and improved monitoring of natural disturbances. A methodological adjustment should be applied to the greenhouse gas emission inventory data of that Member State in order to neutralize the effect of the changes in methodology on the assessment of the collective achievement of the 2030 Union target, in order to respect environmental integrity.

(20) In Europe, National Forest Inventories are used to provide information for forest ecosystem service assessments. The forest inventory monitoring system differs from country to country, as each country has its own forest inventory system with its own methodology. The New EU Forest Strategy for 2030 stressed the need for strategic forest planning in all Member States, based on reliable monitoring and data, transparent governance and coordinated exchange at Union level. To that end, the Commission has announced that it intends to submit a legislative proposal to establish a Union-wide integrated forest monitoring framework.

(21) In order to amend and supplement non-essential elements of Regulations (EU) 2018/841 and (EU) 2018/1999, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of supplementing Regulation (EU) 2018/841 in order to lay down the rules for the recording and accurate carrying out of operations in the Union Registry established pursuant to Article 40 of Regulation (EU) 2018/1999 and in respect of amending Part 3 of Annex V to Regulation (EU) 2018/1999 by updating the list of categories in accordance with relevant Union legislation. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making (15). In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States’ experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.