The European Commission has released the latest data on the EU Emissions Trading System (EU ETS), showing a -1.3% reduction in ETS emissions compared to 2024 levels. This downward trend continues the steady progress made since the ETS was launched in 2005, with emissions halving across the sectors it covers. The system remains on track to achieve its 2030 target of a 62% reduction in emissions.
The maritime sector has also seen significant reductions in emissions, with a reported decrease of around 3%. This is a promising sign for the EU's efforts to reduce greenhouse gas emissions from shipping. However, more work needs to be done to address the sector's carbon footprint and ensure it aligns with the EU's climate goals.
The power generation sector has also seen improvements in emissions, with a -0.4% reduction in 2025 compared to the previous year. This is largely due to the continued growth of renewable energy sources, such as solar power, which experienced a significant increase in 2025.
Solar power accounted for the biggest growth in electricity generation in 2025, with a 24.6% year-on-year increase. This growth was driven by increased investment in solar capacity and declining costs, making it more competitive with other forms of energy production.
The share of renewable electricity in total power generation mix saw a small uptick in 2025, reaching 47.3%. While this is a positive development, there is still much work to be done to increase the share of renewables in the EU's energy mix and reduce dependence on fossil fuels.
The growth in solar electricity generation also had an impact on other renewable sources, such as wind and hydro-electricity production. Lower wind speeds and lower rainfall in Northern Europe contributed to a decline in these sectors, but overall, the trend remains positive for renewable energy development.
Solar power has now overtaken hydropower as the EU's second-largest renewable electricity source after wind. This is a significant milestone for the EU's efforts to increase its share of renewable energy and reduce greenhouse gas emissions.
The growth in solar capacity and decline in coal power emissions have also led to an increase in total electricity generation from fossil fuels, which rose by 3.5% in 2025 compared to the previous year.
Overall, the EU ETS data provides a positive picture of progress made towards reducing greenhouse gas emissions. However, further analysis is needed to fully understand the trends and drivers behind these reductions, particularly in sectors such as energy-intensive industries and aviation.
The EU's efforts to reduce emissions are paying off, but there is still much work to be done.
