EU Emissions Trading System Sees 5% Drop in Carbon Emissions

The European Union's emissions trading system (ETS) reported a 5% decrease in carbon dioxide emissions in 2024, largely due to cuts in the power sector. The system regulates around 45% of the EU's greenhouse gases, encouraging reductions by requiring businesses to pay for their emissions.

The European Commission announced a 5% reduction in carbon dioxide emissions regulated under the EU's emissions trading system (ETS) for 2024. This significant decrease is primarily fueled by the power sector's shift towards renewable energy sources.

The ETS governs approximately 45% of the EU's greenhouse gas emissions, enforcing manufacturers, power companies, and airlines to purchase allowances for their carbon output. According to the Commission, these efforts have brought emissions to nearly 50% below the levels of 2005, with a target of a 62% reduction by 2030.

Power sector emissions saw a 12% drop, driven by an 8% increase in electricity from renewables and a 5% rise from nuclear sources. Meanwhile, aviation emissions increased by 15%, attributed to greater geographical coverage. The expansion of the ETS to include maritime emissions reported 72 million tons of CO2 in 2024.

(With inputs from agencies.)