EU ETS Emissions Fell 1.3% in 2025 as the Pace of Decline Slowed After Two Years of Steep Cuts
Emissions covered by the EU Emissions Trading System fell by 1.3% in 2025 compared with 2024, the European Commission said on 10 April 2026. The figures are based on verified emissions data reported by member states by the 31 March deadline and cover stationary installations, aviation and maritime transport. The Commission noted that reporting for aviation and maritime operators was still being completed, so the final figures could change slightly. The Commission said the decline continues the downward trend of emissions under the system and remains consistent with the target of reducing ETS emissions by 62% by 2030 compared with 2005 levels.
The 2025 decrease is much smaller than in the previous two years. The Commission did not attribute the smaller decline to a single factor. The power sector has accounted for the bulk of ETS emission reductions over the past two decades. Industrial emissions from steel, cement, chemicals and refining have declined more slowly. Maritime transport was brought into the ETS in 2024, with shipping companies required to surrender allowances for a growing share of emissions.
The EU carbon price is set by the market for European Union Allowances. Market participants follow the annual verified emissions data closely because it shows whether the market is moving towards a surplus or a deficit. For power markets, the ETS adds a cost to fossil fuel generation that varies with the carbon price and the carbon intensity of each plant. For industrial energy users, the ETS adds a cost that is partly offset by free allocation.
The 2025 data come as the EU has adopted a 2040 climate target of a 90% net emissions cut, which was published in the Official Journal in March 2026. The CBAM's definitive period started on 1 January 2026, requiring importers of covered goods to account for the embedded emissions. Data centres themselves are not covered by the ETS, but their electricity consumption affects power sector emissions.