Net greenhouse gas (GHG) emissions fell by 31% in the EU-27 between 1990 and 2022, including international transport as regulated by European Union law. Preliminary estimates indicate an additional record year-on-year reduction of 8% in 2023, marking significant progress towards climate neutrality for the EU. Current GHG projections, as reported by Member States, suggest that a 49% reduction in net emissions will be reached by 2030 compared to 1990 levels, missing the 55% reduction target for 2030. More ambitious policies and measures are being developed in ongoing updates of the National energy and climate plans to put the EU on track to reach the 2030 climate target, and on the trajectory towards climate neutrality.

Figure 1. Progress towards achieving climate targets in the EU-27

The reduction of GHG emissions is vital to slow the rate of global warming and mitigate its impact on environment and human health. The EU is a front runner in climate action. The European Climate Law sets a binding target to achieve climate neutrality by 2050 and reduce net GHG emissions by at least 55% in 2030, compared to 1990. The EU has already taken significant steps to fulfill these ambitions.

EU net GHG emissions reduced in 2022 by 31%, since 1990, while GDP significantly increased over the same period. This achievement takes the carbon sink from the land use, land use change and forestry sector (LULUCF) into account and includes the emissions of international aviation and maritime, as regulated by EU law (EU target scope).

The observed reduction in net GHG emissions has followed a gradual strengthening of policies to reduce GHG emissions over the past two decades. The overall decrease can be largely attributed to shifts in energy production methods, notably a significant decline in coal usage and growth in the adoption of renewable energy sources. There has also been a modest reduction in total energy consumption, and substantial decreases in GHG emissions linked to specific industrial production processes

Preliminary estimates indicate that in 2023, net GHG emissions in the EU fell by a further 8% below 2022 levels. This marks the largest year-on-year emission reduction in several decades, except for the COVID-impacted year of 2020. It brings the estimated 2023 emissions to a level of 37% below 1990 levels.  

Focusing on sectoral developments in 2023, estimates indicate a recent continuation of the past trends. The energy supply sector recorded an estimated 19% reduction in GHG emissions between 2022 and 2023, driven by the roll-out of renewable energy production and limited decrease in electricity production. GHG emissions are estimated to have decreased by 6% in the industrial sector, due to a combination of reduced output and efficiency gains in specific sectors in Europe.

A similar reduction was observed in GHG emissions from the buildings sector. The transport sector and the agricultural sectors experienced more limited emission reductions of 1% and 2% respectively. Estimates indicate a modest increase in the GHG removal capacity from LULUCF.

Current and planned policy measures across the EU are expected to contribute to sustaining emission reductions, towards 2030. Member States’ projections submitted in March 2023 and updated by some Member States in 2024 show the policies and measures currently in place combined would achieve a reduction of 43% in net emission levels by 2030 compared to 1990.

The projected reduction would reach 49% when planned additional measures are taken into account, still leaving a six-percentage point gap towards the minus 55% target. More ambitious policies and measures are being developed in the ongoing updates of the National energy and climate plans. New EU-wide policy tools such as the emission trading system for buildings, road transport and additional sectors provide additional incentives to reduce emissions.

The gap between the targets and projected impact of current and planned measures is wider beyond 2030. Taking into account currently adopted and planned measures, net emissions are projected to reach a level of 62% below 1990 levels in 2040 and 66% in 2050. These projections largely exceed the recommended 90% reduction target for 2040 and the legally binding climate neutrality target for 2050. This indicates a need to continue developing ambitious policies to reduce emissions in all sectors in the coming years and decades.

Figure 2. Effort Sharing, ETS, LULUCF trends and projections in the EU-27

Three pivotal EU policies target GHG emissions and removals. Each is accompanied by clear binding targets for 2030:

  • The EU Emission Trading System (EU ETS) covers GHG emissions from stationary installations in the power sector and large industrial plants. It also includes CO2 emissions from aviation since 2012. Emissions from stationary installations have decreased by 48% between 2005 and 2023, largely driven by the decarbonisation of the power sector. Stationary emissions showed a substantial 17% decrease in 2023 compared to 2022, linked to the significant emission reduction in the energy supply sector. At the same time, aviation ETS emissions increased by more than 10%. Projections taking into account current and planned measures indicate an expected 60% reduction by 2030, compared to 2005 levels for stationary installations. This fails to meet the 62% reduction target for the EU ETS by 2030.
  • The Effort Sharing legislation governs national GHG reduction targets, covering sectors such as transport, buildings and agriculture. The reduction in these emissions has been less pronounced compared to those governed by the EU ETS, showing an 18% decrease between 2005 and 2022, with estimates indicating a further 2% decrease between 2022 and 2023. Projections suggest a considerable gap towards the target for 2030, with Effort Sharing emissions expected to reach a reduction of 34% compared with the target of 40%.
  • The land use, land use change and forestry (LULUCF) sector represented a net carbon sink of about 236MtCO2e in 2022, corresponding to the absorption of 7% of the EU’s total GHG emissions. Although the initial estimates for 2023 show a one-year reversal of this trend, the carbon sink has been shrinking continuously over the last decade. GHG projections as submitted by Member States foresee an increase of carbon sink, but not at a rate that would permit achievement of the target level of minus 310MtCO2e by 2030.