The European Environment Agency (EEA) has published a briefing on trends and projections in the EU Emissions Trading System (ETS) in 2020. Greenhouse gas emission from stationary installations covered by the ETS dropped by 9.1% in 2019 compared to 2018 levels, the largest drop in a decade. This change was found to be largely driven by a strong shift in the fuels used for electricity generation, from coal towards less carbon-intensive energy sources such as gas and renewables. However, emissions from aviation continued to increase, reflecting increasing demand for air travel in 2019.
In 2019, the number of EU ETS emission allowances auctioned decreased by 36% compared to 2018, however total revenues from auctions increased by 447 million euros due to higher carbon prices. EU countries project that their emissions under the trading system will continue to decrease in the coming decade, as per current and planned measures, albeit at a considerably slower pace than historically noted. However, these projections do not take into account some of the most recently planned measures, reductions already achieved in 2019, or the impact of the COVID-19 pandemic.
Source: EEA, 14 December 2020