On Tuesday 31 October, the European Commission adopted a report detailing the operation and impact of the EU Emissions Trading Scheme (ETS) for 2022 and the first half of 2023. The ETS, which regulates almost 36% of the EU’s greenhouse gas emissions, continues to be a major tool in Europe’s pursuit of a green transition.
This document highlights a steady decline in emissions, in line with the EU’s climate objectives, which aim for a reduction in emissions of at least 55% by 2030, compared to 1990 levels. It was noted that emissions from power generation facilities and heavy industry fell by 37.3% compared with 2005, despite the challenges posed by the Covid-19 pandemic and the 2022 energy crisis.
The report reveals that the market has withstood these disruptions, with emissions remaining 7% below pre-pandemic levels for 2019. Auctions of emission allowances have generated almost €39 billion in 2022, bringing total revenue from the ETS to €152 billion. The majority of these funds were reinvested in climate and energy initiatives, with Member States allocating an average of 76% of this revenue to such actions.
The publication also insists on a stronger European commitment to the green transition, with the extension of the ETS to the maritime sector in 2024 and the launch of a new system for buildings, road transport and small industries in 2027 (see EUROPE 13164/13).
These initiatives extend ETS coverage to three-quarters of the EU’s emissions.
To view the report, go to https://aeur.eu/f/9d2 (Original version in French by Nithya Paquiry)