What is the European Project-based Mechanism?
The proposed European Project-based Mechanism (EPM) is an internal offsetting system within the EU, allowing countries with more difficult to achieve Effort Sharing Regulation (ESR) targets to pay for cheaper emissions cuts in other EU Member States. This enables more ambition in the Effort Sharing Regulation, and more cost-effective emission cuts.
This short briefing explains how the EPM would work, and how it could direct financial support towards additional low-carbon investment, especially in Central and Eastern Europe.
The Efforts Sharing Regulation covers emissions in agriculture, transport, waste and buildings (approximately 60% of the EU’s total), and policymakers are currently debating the rules for the system after 2020.
Tractor image by J. Gallan on Flickr, used under a creative commons licence.