EU Emissions in Carbon Market Fall 15.5% in 2023, Driven by Renewable Energy Increase

The European Union’s Emission Trading System (ETS) reported a 15.5% reduction in emissions in 2023 compared to the previous year, marking the most significant annual decrease since the system’s launch in 2005. This reduction brings ETS emissions to around 47% below the levels of 2005, contributing to the EU’s target of a 62% reduction by 2030.

The decrease in emissions is primarily attributed to the power sector, where emissions from electricity production dropped by 24% from 2022. This significant decrease was largely due to an increase in renewable energy production, particularly from wind and solar sources, which reduced the reliance on coal and gas for electricity generation. Additionally, a recovery in hydro and nuclear power, aided by more favorable climate conditions, also contributed to the overall emissions decrease.

In the industrial sector, emissions saw a reduction of approximately 7% from the previous year. This reduction is attributed to a combination of decreased industrial output and efficiency improvements, especially in the cement, iron, and steel industries.

Conversely, aviation emissions rose by about 10% from 2022, reflecting the sector’s recovery from the impact of the COVID-19 pandemic on air travel.