EU Cuts Greenhouse Gas Emissions by More than 8% in 2023

Net greenhouse gas (GHG) emissions across the EU fell by 8.3% in 2023, according to a new report released by the European Commission, marking one of the largest declines in decades, with the exception of a 9.8% COVID-19-driven drop in 2020 (which was followed by a 4.8% increase the following year), and a significant acceleration from the 3% reduction in 2022.

Among the top achievements highlighted in the report is a 24% year-over-year reduction in emissions from electricity production and heating, which the report said has been driven by “a substantial increase in renewable electricity production (primarily wind and solar) and gas replacing coal,” with renewable energy now the leading source of electricity in the EU, accounting for nearly 45% of electricity production. In addition, electricity generated from fossil fuels decreased by nearly 20% in 2023 compared to the prior year.

The publication, the Commission’s 2024 Climate Action Progress Report, outlines the progress made towards the EU’s emission reduction targets, and sets out key achievements and recent developments in the fight against climate change.

The EU adopted the European climate law in 2021, setting into legislation the goal to reach climate neutrality by 2050. The climate law is a centerpiece of the European Green Deal, the EU strategy to transform the region into a modern, resource-efficient and competitive economy. In addition to the 2050 goal, the law set the binding target for a 55% GHG emissions reduction by 2030, relative to 1990, which has been followed by a broad set of “Fit-for-55” laws and regulations aimed at addressing emissions across carbon-intensive sectors of the economy, including expanding and tightening the Emission Trading System (EU ETS), which puts a price on carbon emissions for key GHG intensive sectors.

The EU is now looking to set a 2040 target, with the Commission recently recommending a 90% GHG emissions reduction. The Commission has also outlined an estimate for the investments that would be needed to achieve the recommended 2040 target, which included €660 billion annually in the energy system, and €870 billion per year in the transport sector, with key areas of investment targeting the decarbonization of industrial processes, improvements in energy efficiency in energy-intensive industries, a shift towards electrification, and the production of sustainable alternative fuels to power the transport sector.

Overall, the new report found that net GHG emissions in the EU are now 37% lower than 1990 levels, compared with 68% GDP growth over the same period, and that the EU is on track to reach its 55% 2030 goal.

Across other key sectors, the report found that emissions from power and industrial installations covered by the EU ETS fell by a record 16.5% in 2023, building sector emissions fell by 5.5%, agricultural emissions fell by 2%, transport emissions declined by less than 1%, while aviation emissions increased by 9.5%.