Greenhouse gas emissions from power and industry in the European Union are now about 50% lower than in 2005 and are set to meet a 62% reduction target by 2030, according to a new report released by the European Commission.
Power sector emissions fell by nearly 11% in 2024 compared with the previous year, while overall emissions from burning fuels in power and industry decreased by 9%, the 2025 Carbon Market Report notes.
The increase in renewable electricity, mainly from wind and solar, and a continued shift from coal to gas contributed to the decline.
Emissions from burning hard coal in the EU’s carbon market dropped to their lowest level on record in 2024, the new figures show.
Industry emissions remained lower than in recent years, with stable overall production across most sectors and modest recovery in steel, fertiliser, and chemical industries.
Aviation and shipping added to system
The European Emissions Trading System, known as the EU ETS, is a scheme where actors like energy producers and airlines must buy allowances for each tonne of carbon dioxide they emit, with the aim of reducing greenhouse gases.
The Carbon Market Report noted that aviation emissions covered by the system rose about 15% in 2024, partly due to more flights to the EU's outermost regions now being included.
For shipping, 2024 marked the first year that the EU included carbon dioxide emissions from maritime transport in its carbon market.
The system now covers all vessel emissions between EU ports and half of emissions for journeys entering or leaving the European Economic Area.
Nearly every shipping company complied with the rules by submitting the required allowances by the September 2024 deadline, according to the report.
The EU ETS also started providing additional allowances to airlines for sustainable aviation fuel use and became the first area globally to require airlines to monitor and report effects of their flights beyond standard carbon emissions, including emissions such as nitrogen oxides and water vapour.
Revenue passed €250 billion mark
The EU ETS generated €38.8 billion in revenue in 2024, with total funds from the system now exceeding €250 billion since its inception, the Commission says.
Most of the revenue goes to national projects promoting renewable energy, upgrades to energy grids, building renovations, and improvements in public and rail transport.
The report also described forthcoming changes to the carbon market, including new emission reduction targets for maritime transport and adjustments to the overall emissions cap starting in 2026.
