Last updated: 5 August 2026.
Quick answer. An absolute threshold is the maximum amount of greenhouse gas emissions that a country, company or sector may generate within a given period. Directive (EU) 2018/410 requires EU Member States to significantly reduce their emissions, and absolute thresholds can be set for sectors such as industry, energy or transport: an installation may not exceed its cap regardless of how much it produces, so producing more requires cleaner technologies or better energy efficiency. These caps establish a clear and measurable target, promote innovation that can generate jobs and business opportunities, and guarantee a constant reduction of emissions over time, sending companies and investors a clear signal that the transition to a green economy is inevitable.
What are absolute thresholds?
Imagine you have a bank account. An absolute threshold would be like a maximum limit you cannot exceed. In the case of greenhouse gas emissions, an absolute threshold is the maximum amount of emissions that a country, company, or sector can generate within a given period.
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How are absolute thresholds applied in Directive (EU) 2018/410?
This directive establishes that European Union countries must significantly reduce their greenhouse gas emissions. To achieve this, absolute thresholds can be set for different sectors such as industry, energy, or transport.
Practical example:
Let’s suppose an absolute threshold of 100 tons of CO2 is set for a steel factory in one year. This means that regardless of how much the factory produces, it cannot emit more than those 100 tons of CO2. If it wants to produce more, it must find ways to reduce its emissions, such as investing in cleaner technologies or improving energy efficiency.
How do absolute thresholds help fight climate change?
There are three ways in which setting absolute thresholds improves the fight against climate change:
- They establish a clear and measurable target: By setting a maximum emissions limit, an incentive is created for companies and countries to invest in cleaner technologies and processes.
- They promote innovation: To meet absolute thresholds, companies must seek innovative solutions to reduce emissions, which in turn can generate new jobs and business opportunities.
- They ensure a constant reduction in emissions: By setting a maximum limit, it is guaranteed that emissions will not increase over time, which is essential to combat climate change.
Why are the measures of Directive (EU) 2018/410 important?
This directive sends a clear signal to companies and investors that the transition toward a green economy is inevitable.
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Frequently asked questions
It is the maximum amount of greenhouse gas emissions that a country, company or sector can generate within a given period — comparable to a maximum limit on a bank account that cannot be exceeded.
The Directive establishes that EU countries must significantly reduce their greenhouse gas emissions, and to achieve this absolute thresholds can be set for different sectors such as industry, energy or transport. An installation cannot emit above its cap regardless of its level of production.
It must find ways to reduce its emissions, such as investing in cleaner technologies or improving its energy efficiency.
In three ways: they establish a clear and measurable target that incentivises investment in cleaner technologies; they promote innovation, which can generate new jobs and business opportunities; and they ensure a constant reduction in emissions over time.
Because they send a clear signal that the transition toward a green economy is inevitable, encouraging companies and investors to anticipate their environmental and sustainability obligations.
