The emissions from last year under the EU's Emission Trading System (ETS) show the biggest yearly decrease since the system started in 2005. The main reason for this is the significant progress in reducing emissions by the power sector.
The information reported by EU Member States as of 2 April 2024 indicates a 15.5% reduction in emissions in 2023 compared to 2022 levels. With this, ETS emissions are now about 47% lower than the levels in 2005 and are on track to reach the 2030 target of -62%.
The observed pattern confirms the effectiveness and efficiency of the EU's cap and trade system as the primary policy tool for reducing carbon emissions in the European economy.
There was a significant rise in the generation of renewable energy for electricity.
The most important factor for the sharp decrease in EU ETS emissions has been the power sector, with emissions from electricity production decreasing by an impressive 24% compared to 2022. This reduction is due to a substantial increase in renewable electricity production, primarily from wind and solar, at the expense of both coal and gas.
The increase in hydro and nuclear power due to improved climate conditions also contributed to the decrease in emissions, but to a lesser degree.
Emissions from the industry sector continue to decrease.
In energy-intensive industry sectors, there was a reduction in emissions of about 7% compared to 2022. The decrease in emissions in the industry sector is the result of a combination of lower output and improved efficiency, particularly in cement, iron, and steel.
Emissions from aviation saw a further increase.
Aviation emissions rose by around 10% compared to 2022, which is a result of the aviation industry's ongoing recovery from the drop in traffic during the COVID-19 pandemic.
