EU emissions down 8%: ‘largest annual drop in decades’

Greenhouse gas emissions in the European Union went down by 8.3% in 2023, with cuts achieved in all high-emitting sectors except aviation.

This is the largest annual drop in emissions in “decades” according to the European Commission – with the exception of 2020, when COVID-19 disruptions led to 9.8% reduction in greenhouse gas emissions.

EU emissions are now 37% lower than in 1990, putting the region on track to achieve its targeted 55% reduction by 2030. At the same time, GDP grew by 68% last year, suggesting that the EU economy is increasingly decoupled from emissions.

EU ETS sectors make record progress

Most high-emitting sectors made significant progress in reducing emissions in 2023: power and industrial installations covered by the EU Emissions Trading System (EU ETS) saw a record 16.5% decrease last year, bringing total ETS sector emissions down 47.6% below 2005 levels and on track for a 62% reduction by 2030.

Still within ETS sectors, electricity production and heating emitted 24% less in 2023 than in 2022, helped by significant growth in renewable energy sources.

Revenue generated by the EU’s cap and trade system amounted to €43.6 billion last year, to be invested in climate action: €7.4 billion has been assigned to the Innovation Fund and the Modernisation Fund, with the rest of the money being distributed to Member States.

Modest emissions reductions for buildings and agriculture

Grouped together, the buildings, agriculture, domestic transport, small industry and waste sectors saw a 2% emissions drop in 2023, driven largely by the buildings sector, which alone decreased emissions by 5.5%.

Meanwhile, agricultural emissions fell by 2% and transport emissions fell by less than 1%.

Among high-emitting sectors in the EU, aviation is the only industry that experienced an increase in emissions as activities continued to recover post-COVID. Overall, aviation emissions grew by 9.5% last year.

'Our work must continue'

While the Commission welcomed the progress achieved last year, not only in reducing emissions but also in increasing natural carbon sinks by protecting forests, it also lamented the “lost lives and livelihoods driven by our already changing climate” – exemplified last week by the catastrophic floods that have so far claimed 215 lives near Valencia, Spain.

“The EU is leading the way in the clean transition, with another year of strong greenhouse gas emission reductions in 2023. The EU now represents 6% of global emissions. As we head off soon to COP29, we once again demonstrate to our international partners that it is possible to take climate action and invest in growing our economy at the same time. Sadly, the report also shows that our work must continue, at home and abroad, as we are seeing the harm that climate change is causing our citizens,” said Wopke Hoekstra, Commissioner for Climate Action.