The European Union has successfully reduced greenhouse gas emissions in carbon-intensive sectors by approximately 50% since 2005, with a 5% drop in emissions recorded in 2024, according to the latest European Commission report. This steady progress is being driven by the EU Emissions Trading System (EU ETS), a cap-and-trade mechanism designed to reduce carbon emissions across various sectors.
Power Sector Leads the Way
The power sector remains the standout performer, accounting for a significant portion of emissions reductions. In 2024 alone, emissions from electricity generation fell by 12%, largely due to a sharp increase in renewable energy sources:
- Solar power surged by 19%
- Hydropower grew alongside nuclear (up 5%)
- Gas and coal consumption dropped by 8% and 15%, respectively
Despite challenges in wind energy generation due to weather conditions, renewable energy’s share continued to rise, contributing to the overall decline in the sector’s emissions.
Mixed Progress in Industry and Aviation
While the power sector made significant strides, other sectors showed more varied results. The fertilizer industry saw a 7% rise in emissions, correlating with increased production, while the cement sector reduced emissions by 5% in line with a drop in output.
Aviation, on the other hand, saw a 15% increase in emissions, partly due to the expansion of the EU ETS to include non-domestic flights to and from EU outermost regions.
Looking Ahead
The EU is on track to meet its 2030 goal of a 62% emissions reduction. The EU ETS, which is expected to generate €40 billion in revenues between 2020 and 2030, continues to evolve as a cornerstone of Europe’s climate strategy, tightening emissions caps and expanding its scope to drive further decarbonization.
As the EU strengthens its efforts in renewable energy and sectors like aviation and industry continue to adapt, the EU ETS remains pivotal in the region’s journey toward a net-zero future.
For more information, visit the European Commission.
