On Wednesday 3 December, the European Commission published its 2025 report on the carbon market.
According to the document, the implementation of the EU Emissions Trading System (ETS) is bearing fruit in reducing greenhouse gases in energy and industry. In fact, in 2024, emissions from installations covered by the system fell by 5.8% compared with 2023, to around 1,033 million tonnes of CO2 equivalent.
Since 2005, when the ETS was launched, emissions have fallen by almost 50%, putting the European Union well on the way to achieving its target of a 62% reduction by 2030 (compared with 2005).
The power generation sector, where emissions will have fallen by 10.7% by 2024 thanks to the growth in renewable energies (led by solar and wind power) and the reduction in the share of coal in the energy mix, has made this progress possible.
Industrial emissions fell slightly, by 0.8%, as activity picked up in sectors such as iron and steel, fertilisers and chemicals.
Also, for the first time, maritime transport has been integrated into the system. In 2024, companies had to surrender allowances covering 40% of their emissions, a rate that will gradually increase. All connections between ports in the European Economic Area (EEA) and 50% of emissions linked to journeys to or from third countries are concerned. Furthermore, according to the document, “shipping companies surrendered allowances for more than 99% of surrendering requirements by the legal deadline”.
The report also notes the growing role of the ETS in financing the energy transition. Auctions of allowances generated €38.8 billion in 2024, a significant proportion of which was allocated to the Member States, the Innovation Fund and the Modernisation Fund.
In addition, the Commission has stated that adjustments to the emissions cap are expected from 2026, as well as an extension of the system to other gases (methane and nitrous oxide) in maritime transport.
The Commission’s report: https://aeur.eu/f/juc (Original version in French by Nithya Paquiry)