European Commission adopts 2025 Carbon Market Report on EU ETS

The European Commission adopted the 2025 Carbon Market Report.

• Report findings and actions: The report takes stock of the functioning of the EU ETS in 2024 and highlights developments in early 2025, noting EU ETS emissions from power and industry are ~50% below 2005 levels and the system is on track for the -62% 2030 target; it records that power-sector emissions fell nearly 11% in 2024, maritime CO2 emissions were included in 2024, aviation emissions rose by ~15% in 2024, and EU ETS revenue was €38.8 billion in 2024 (total ETS revenues to date exceed €250 billion). It also outlines ETS cap adjustments taking effect in 2026: rebasing (one-off reduction), expansion to methane and nitrous oxide from maritime transport, and revisions based on the updated list of small emitters.
• Background and implementation details: The report links emissions trends to increased wind and solar, gas replacing coal, and a historical low share of emissions from hard coal; industrial emissions decreased slightly with sectoral variation (steel, fertilisers, chemicals showing modest recovery). Shipping compliance was high (companies surrendered allowances for >99% of requirements by 30 September; in 2025 they surrendered allowances covering 40% of their 2024 emissions), and Member States have primarily used 2024 ETS revenues for renewables, grids and storage, energy efficiency, heating and cooling, and public transport (examples: Denmark offshore wind/biogas upgrades, Lithuania deep retrofit residential projects, Portugal public transport expansion, Slovenia rail and cycle-path investments). Publication date: 3 December 2025. Author: Directorate-General for Climate Action.