Sectoral climate targets in the energy and manufacturing industries, construction, transport, residential and tertiary buildings, agriculture and forestry, and waste and wastewater treatment ensure that major potentials are used efficiently. The integrated national energy and climate plan sets out concrete measures in all these areas.
These «sectoral climate objectives» make it possible to specify part of the NECP by means of concrete directives that can be measured over time.
In addition to the two national targets (1. climate neutrality by 2050, 2. reduction of greenhouse gas emissions by 55% by 2030 compared to 2005 levels), Luxembourg's climate law also contains provisions for five sectors in particular that define concrete and comprehensible targets for the reduction of greenhouse gas emissions. Article 5 of the Climate Act defines the sectors for which greenhouse gas emission reduction targets must be set:
- energy and manufacturing industries, construction
- transport
- residential and commercial buildings
- agriculture and forestry
- waste and wastewater treatment
The objectives for these five sectors were set out in writing in the Grand Ducal regulation of 22 June 2022.
Allocation of emission quantities
Each of the five sectors has been assigned an annual quantity of greenhouse gas emissions that must not be exceeded. The calculations are based on 2005 emission levels and follow three principles:
- Emissions are falling steadily and uniformly.
- When the quantities of emissions are defined, the reduction potential of each sector is taken into account.
- When the quantities of emissions are defined, the social, economic and budgetary consequences are taken into account.
The potential for reduction, as well as the consequences for the social situation, business, the national economy, the environment and health, have already been analysed as part of the PNEC.
For this sector, the quantities of emissions allocated in 2021 were 31 % lower than in 2005, meaning that a maximum of 5,279 t CO2 eq could be emitted. In 2022, the value was 5,018 t CO2 eq. and by 2030, the transport sector must have reduced its greenhouse gas emissions by 57 % compared with 2005.
Emission allowances can be carried forward or transferred to another sector.
In practical terms, this means that if a sector has made particularly great progress in one year and has not reached its emissions quota, then the difference in quantity is carried over to the following year. On the other hand, if the maximum authorised quantity has been reached or exceeded, then the difference between the emissions recorded and the emissions allocated is also carried over to the following year, in which case the sector will have to reduce its emissions further.
Between sectors, too, it is possible to trade the difference between the quantity of emissions accounted for and the quantity of emissions allocated, provided that the national emission reduction targets for the year in question are fully met.
In this case, a sector that has reduced its emissions by more than expected can transfer the surplus to a sector that has reached or exceeded its emissions quota.
The final balance sheet for 2021 shows that total emissions were 1.3% below the total emissions allowance for that year, so that the target for 2021 has been met. However, at sectoral level, it can be seen that while emissions from the «transport» and «agriculture and forestry» sectors remained below their annual allocation, the same was not true for the «energy and manufacturing industries, construction», «residential and tertiary buildings» and «waste and wastewater treatment» sectors, for which they exceeded their respective annual allocations.
The provisional balance sheet for 2022 shows a sharp drop (12.3%) in emissions compared with 2021. Emissions are 9% below the total emission allowance for this year, so the target for 2022 has been met. As in 2021, the «transport» and «agriculture and forestry» sectors remained below their annual allocation levels, while the other three continue to exceed the maximum values defined in the Grand-Ducal regulation, although emissions have fallen sharply compared with the previous year.