Briefings

The EU Emissions Trading System in 2021: trends and projections

The COVID-19 pandemic has had a profound impact on carbon emissions in Europe. In 2020, emissions from stationary installations covered by the EU Emissions Trading System (EU ETS) declined by 11.4% (surpassing the 9% decrease seen in 2019). Aviation was even more acutely impacted. The risk of a rebound in emissions remains, and we must take further measures to bring ETS emissions onto a path to achieve climate neutrality. Reduced demand resulted in more allocations than emissions, but carbon prices recovered quickly.

The EU Emissions Trading System in 2020: trends and projections

The European Union’s energy system is decarbonising rapidly. In 2019, emissions from stationary installations covered by the EU Emissions Trading System (EU ETS) declined by 9.1 %. Further reductions are expected in 2020, partially because of the Covid-19 crisis. However, significant further cuts in emissions remain necessary to achieve climate neutrality by 2050. The auctioning of emission allowances can turn into a significant source of revenues to support climate investments. This briefing provides an overview of past and projected emission trends under the EU ETS.