A recent report published on Tuesday by the European Commission assesses the uneven progress made by different sectors as well as the member states in reducing the emissions covered by the EU ETS since 2013.

In brief, between 2013 and 2023, emissions dropped 34%, a decline that was “was mostly driven by emission reductions in the power generation sector, where emissions decreased by 47%.” The downward trend in the power sector was influenced by the shift from coal to natural gas, “a direct consequence of higher carbon prices in the EU ETS” as well as “policies to foster renewable electricity.”

In many sectors, most of the decline happened in 2022 and 2023 amid higher energy prices. This is the case for the chemical industry which experienced a 5,5% decline between 2013 and 2021 while dropping strongly by 24% in 2023 relative to 2021. In the cement and lime production, emissions increased by 6,2% until 2018 only to decline by 13,8% over the total period, the shift being induced by the energy crisis. 

The analysis also revealed the uneven progress across the Member states. While the carbon price faced is the same across the community as the EU ETS is a policy instrument covering all EU countries, the largest reduction in emissions were noticed in countries where it is the cheapest to decarbonize, mainly in the power generation sector.