Emissions in the sectors covered by the EU Emissions Trading System, or EU ETS, have decreased by 50% since 2005, as per the Directorate-General for Climate Action.
According to data submitted by EU Member States by the deadline of March 31, 2025, emissions from reporting stationary installations and aircraft operators decreased by 5% in 2024 as compared to 2023 levels.
As a result, ETS emissions are currently about 50% lower than they were in 2005 and on course to meet the -62% target set for 2030.
The EU ETS, a cap-and-trade scheme, is a cornerstone of the EU’s climate policy, aiming to reduce greenhouse gas emissions by putting a price on carbon emissions from sectors like power, industry, and aviation, and now also including maritime transport.
In 2024, the EU ETS saw further reductions in emissions, with the power sector being a key driver of decarbonization progress.
Sectoral analysis:
With emissions from the production of electricity down 12% from 2023 levels, the power sector has been the primary driver of the decline in EU ETS emissions.
This reduction is the result of a 15% decrease in coal and an 8% decrease in gas, as well as a 5% increase in nuclear and an 8% increase in renewable energy production.
The primary forces behind the remarkable 19% increase in electricity generation from renewable sources have been hydropower and solar. Despite less favorable weather during some times of the year, wind-generated power stayed consistent. Additionally, overall electricity production stayed stable, approaching 2023 levels.
On average, the emissions from energy-intensive industries remained consistent. Nonetheless, there are variations among sectors. For instance, emissions in the cement industry fell by 5%, but emissions in the fertilizer industry rose by 7%.
Production volume changes appear to be the primary cause of these changes. While the cement industry saw a 5% decrease in production in 2024, the fertilizer industry is partially rebounding, increasing its output by 6%.
The expansion of geographical coverage (re-inclusion of non-domestic flights to and from airports in outermost regions) contributed to a 15% increase in aviation emissions covered by the EU ETS compared to 2023.
In 2025, shipping companies began reporting verified emissions under the EU ETS for the first time, building on the monitoring and verification system since 2018. As of April, companies reported around 72 million tCO₂ under the ETS scope, with 40 million already reflected in the EU ETS Registry.
The Red Sea crisis’s impact on maritime traffic in 2024 influenced the evolution of maritime emissions, but data collection is ongoing, allowing only completed trends to be reported, the DG Climate Action noted.
