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Greenhouse gas emission intensity of power generation in the European Union has returned to the overall decreasing trend of the past decades. This follows a slight increase in use of fossil fuels during 2021 and 2022, linked to post-COVID recovery and the war in Ukraine. Generating one kilowatt hour is estimated to have emitted, on average, 19% less CO2 in 2023 than in 2022 and 35% less than a decade ago. Climate and energy policies have effectively lowered carbon-intensive electricity supply over time, resulting in less coal use, more renewables and a more efficient EU generation mix.
Figure 1. Greenhouse gas emission intensity of electricity generation, EU level
The EU electricity sector is expected to provide one of the most significant contributions to climate change mitigation by 2030 and be a cornerstone for the Union to reach net climate neutrality by 2050, according to scenarios behind the joint targets. For that to happen, the greenhouse gas (GHG) emission intensity of the sector needs to fall drastically through the end of this decade.
In 2023, the EU’s electricity sector was estimated to be 58% less GHG intensive than it was in 1990 and 19% less thank 2022. Hydro and nuclear power returned to average generation levels, solar and wind power continued their growth and coal generation resumed its long-term decline. Electricity generation experienced a limited reduction (3%, compared with2022), partly linked to a lower production in specific EU industrial sectors.
Until 2010, the need to comply with industrial emissions legislation, such as the Large Combustion Plants Directive and the shift from fossil fuels to renewable electricity sources drove down the carbon intensity of EU electricity supply. As of 2010, the decrease has been almost exclusively due to the transition from fossil fuels to renewable electricity sources, with prices for emission allowances under the EU Emissions Trading Scheme increasing, especially since 2019.
To reduce the EU’s net greenhouse gas emissions by 55% by 2030 (compared with 1990) and reach carbon neutrality by 2050, electricity generation across the EU needs to decarbonise faster. Figure 1 visualises indicative intensity levels that would be consistent with the EU’s climate targets.
Today’s geopolitical context further calls for a rapid decarbonisation to replace gas, coal and oil use in power supply, heating and transport. This would also contribute to improved energy security and reduced electricity prices in the longer term. Additional policies and measures are needed to deploy renewable generation sources faster, provide incentives to users to save energy and participate actively in the electricity market, and ensure an optimised build out of electricity infrastructures across the European Union.
Figure 2. Greenhouse gas emission intensity of electricity generation, country level
The GHG intensity of electricity production differs significantly between Member States. Estonia, Poland, Cyprus and Bulgaria are estimated to have had the highest electricity generation carbon intensity in 2023. This is due to the use of solid fossil fuels, relatively few renewables and limited, or no, nuclear sources in their national electricity mixes.
In eight additional Member States, the carbon intensity was higher than the EU average (Czechia, Greece, Germany, Malta, the Netherlands, Ireland, Italy and Romania). Yet, the GHG intensities for electricity production were lowest in Sweden, Luxembourg and Finland, because of their high share of low-carbon electricity sources (renewables and nuclear power).
For national achievements, estimates show the highest rates of decarbonisation in electricity production over the 1990-2023 period in Luxembourg (87% decrease), Denmark (86%), Slovakia (82%) and Latvia (81%). In non-EU EEA countries, all electricity produced in Iceland and most produced in Norway comes from renewable sources, therefore their GHG emission intensities are very low. Türkiye has a relatively high GHG emission intensity of electricity generation.