EU emissions fall as clean energy expands and ETS revenues rise

Emissions and targets

The Commission's reports show net greenhouse gas emissions fell by 1.6% in 2025 versus 2024, with emissions covered by the EU ETS down around 2% and Effort Sharing Regulation sectors broadly stable. Emissions are now 39% below 1990 levels while the EU economy has grown by 74% over the same period. The amended European Climate Law entered into force in April 2026, establishing a legally binding target to reduce net GHG emissions by 90% by 2040 compared with 1990.

The ESR trajectory is projected to fall about 38.5% by 2030 versus 2005, slightly below the EU-wide 40% target, and nine Member States (Austria, Croatia, Cyprus, Germany, Italy, Ireland, Lithuania, Malta and Sweden) have been asked to submit corrective action plans. Provisional data show land-sector removals rose ~11% in 2025 but a 40–55 MtCO₂e gap remains to the 2030 land-use target.

Clean technology deployment

Deployment of clean technologies accelerated in 2025: battery-electric car registrations reached 1.9 million (about one in six new cars), EU wind and solar capacity grew to 611 GW (roughly 49% of total electricity generation capacity), and an estimated 41 GW of heat-pump capacity was added in 2025 versus 26 GW in 2024. The report notes expanded cleantech manufacturing and further economic opportunities for industry.

Carbon market and revenues

The 2026 Carbon Market Report records EU ETS revenues of €43.2 billion in 2025, an 11% increase on 2024, of which €23.9 billion went directly to Member States to finance decarbonisation measures. Emissions from industrial installations fell 3.3% from 2024, largely driven by iron & steel, cement and chemical sectors. Maritime emissions decreased 4% and aviation emissions grew 0.2%. While ETS emissions remain below the cap, reductions have slowed and the Commission proposed an ETS reform for 2030–2040 in July 2026.

Climate resilience and adaptation

The reports highlight rising climate impacts: extreme events have caused an estimated €822 billion in economic losses in the EU since 1980, and around €70 billion per year will need to be invested in adaptation up to 2050. The EU Climate Resilience Framework presented in October 2026 includes a proposed Climate Resilience Law supported by a common reference trajectory for global warming.