Alina TEODORESCU

Alina TEODORESCU

EU carbon market analyst

EU Emissions Outpace GDP Growth in the First Quarter of 2025

Power Sector Fuels Surge as 20 EU States Report Increases

19 August 2025

According to a recent Eurostat report, emissions in the European Union rose by 3.4% in the first quarter of this year compared with the same period in 2024. This marks the second consecutive quarter of rising emissions, following a 2.2% increase in the final quarter of 2024.

The January–March rise in emissions outpaced the EU’s gross domestic product (GDP), which grew by just 1.2% over the same period, highlighting a widening gap between economic growth and emissions reduction efforts.

The power sector recorded the steepest increase, with emissions climbing 13.6% due to low renewable energy generation, while the transportation and storage sector posted the largest decline, down 2.9%.

Emissions increased in 20 EU member states, with six countries reporting rises of more than 6%. The largest proportional increase was recorded in Bulgaria, where emissions surged by 17.4%. Germany posted the biggest increase in absolute terms, followed by Poland, both of which remain among Europe’s most coal-dependent nations.