The European Environment Agency (EEA) has published a briefing on trends and projections in the EU Emissions Trading System (ETS) in 2021. Greenhouse gas emission from stationary installations covered by the ETS dropped by 11.4% in 2020 compared to 2019 levels, the largest drop in emissions since the ETS began operating in 2005. Emissions from aviation fell by 63% as air travel almost halted during the COVID-19 pandemic.
The number of available allowances surpassed annual emissions for the first time since 2013, mainly because of low demand. Carbon prices dropped sharply in March 2020 but recovered by the end of the year. EU countries project that their emissions under the trading system will continue to decrease between 41% and 48% by 2030, and between 55% and 62% by 2040, both relative to 2005.
Source: EEA, 12 January 2022