The European Commission has published the 2024 Climate Action Progress Report, showing that net EU greenhouse gas (GHG) emissions fell by 8.3% in 2023 compared to the previous year.
According to the official website of the European Commission, this is the largest annual drop in decades, with the exception of 2020 when COVID-19 led to emission cuts of 9.8%. Net GHG emissions are now 37% below 1990 levels, while GDP grew by 68% over the same period, showing the continued decoupling of emissions and economic growth. The EU remains on track to reach its commitment to reduce emissions by at least 55% by 2030.
Emissions from power and industrial installations covered by the EU Emissions Trading System saw a record 16.5% decrease in 2023. ETS sector emissions are now around 47.6% below 2005 levels and well on track to reach the 2030 target of -62%.
Under the EU ETS, emissions from electricity production and heating decreased by 24% compared to 2022, driven by the growth of renewable energy sources, in particular wind and solar energy, and the transition away from coal. Aviation emissions grew by 9.5%, continuing their post-COVID trend.
The EU ETS generated revenues of €43.6 billion in 2023 for climate action investments. €7.4 billion is assigned to the Innovation Fund and the Modernisation Fund, with the rest of the money going to Member States directly.
Buildings, agriculture, domestic transport, small industry and waste emissions (covered by the Effort Sharing Regulation) fell by around 2% in 2023. Reductions were driven by the buildings sector, decreasing by around 5.5%. Agricultural emissions fell by 2% while transport emissions fell by less than 1%.
The EU's natural carbon sink increased by 8.5% in 2023, reversing the declining trend of the past decade in the Land Use, Land Use Change and Forestry (LULUCF) sector. However, further efforts are needed to meet the 2030 targets.
While this report gives encouraging news on EU emission reductions, the last year has also seen more catastrophic events and lost lives and livelihoods, driven by our already changing climate, and global emissions have not yet peaked. Continued action is necessary to ensure that the EU meets its 2030 targets and sets itself on the right path to achieve its future 2040 target, and the 2050 goal of net zero emissions. The EU must also continue its international engagement, starting with COP29 next month, to ensure that our international partners are also taking the necessary action.
While Member States are slowly improving on climate adaptation and building resilience, further action is crucial. In 2023, Europe experienced its largest wildfires ever recorded, one of the wettest years on record, major marine heatwaves, widespread devastating flooding, and a continuing increase in temperatures. The Commission Communication on Managing Climate Risks and the European Climate Risk Assessment both stressed that climate exposure needs to be considered at all levels of governance when setting policy priorities, and across all sectoral policies.
The past year has seen productive engagement by the EU with its international partners to enhance climate action, most notably at COP28 in Dubai. At COP28, the Parties concluded the first Global Stocktake under the Paris Agreement, with decisions on accelerating action by 2030 and beyond, including the transition away from fossil fuels, tripling renewable energy capacity globally and doubling the global average annual rate of energy efficiency improvements by 2030. The EU, its Member States and financial institutions, collectively known as Team Europe, remain the leading contributor of development assistance and the world's biggest climate finance contributor, accounting for about a third of global public climate finance.
