Europe’s greenhouse gas (GHG) emissions continue to fall as clean technologies expand, while rising revenues from the European Union’s (EU) emissions trading system (ETS) are increasingly being invested in decarbonisation.
On 9 November, the European Commission published the 2026 EU Climate Action Progress Report and Carbon Market Report. The report confirmed that EU net GHG emissions fell by 1.6% in 2025 compared to the previous year.
Emissions covered by the ETS decreased by around 2% in 2025. Meanwhile, emissions in sectors covered by the effort sharing regulation (ETR) remained stable.
The commission reports that emissions are now 39% below 1990 levels, while the continent’s economy has grown by over 74% in the same period.
This year’s Carbon Market Report also highlights that ETS revenues grew to €43.2 billion ($69.61 billion) in 2025 — an 11% increase compared to 2024.
More than half of this revenue went directly to EU member states to finance decarbonisation measures for households and industry.
Increasing the share of ETS revenues invested in decarbonisation and maintaining the system’s integrity will be key to meeting the ETS’s 2030 target of a 62% emissions reduction on 2005 levels.
EU is not slowing down
The EU remains committed to reducing net GHG emissions by at least 55% by 2030. However, the Commission says the slower pace of reductions in 2025 means efforts must accelerate across the economy over the rest of the decade.
The accelerated deployment of clean technologies in 2025 continues to reduce Europe’s dependence on imported fossil fuels and limit the impact of volatile fuel prices on citizens and businesses.
Europe’s clean-tech manufacturing has expanded. However, the report highlights that further economic opportunities for European industry can still be captured.
The EU is also strengthening its longer-term climate framework for 2026 by establishing a legally binding target. The target aims to reduce net GHG emissions by 90% in 2040 compared to 1990 levels.
Commissioner for Climate, Net Zero, and Clean Growth Wopke Hoekstra says the EU’s emissions continue to fall and that the use of clean technologies is expanding across the economy.
“By accelerating the transition to clean, home-grown energy, we can cut emissions, strengthen our resilience, and reduce our dependence on imported fossil fuels,” Hoekstra says.
“The next step is faster implementation and investment in EU clean-tech across Europe. That is how we can meet our targets and secure a cleaner economy, stronger industry, and greater prosperity for Europeans.”
The Climate Action Progress Report shows annual progress towards the EU’s emissions reduction targets and includes information on different climate policy areas, legislative progress, climate finance, and adaptation.
The Carbon Market Report is an annual stocktake of the functioning of the European Union ETS.
Write to Aaliyah Rogan at Mining.com.au
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