ACC News Brief
Climate Policy European Union
EU carbon-market emissions fell as 2024 auction revenue reached EUR 38.8 billion
What happened
The European Commission's 2025 Carbon Market Report says emissions from stationary power and industrial installations covered by the EU Emissions Trading System fell 5.8 percent in 2024 compared with 2023. Power-sector emissions fell nearly 11 percent, while auctioning allowances raised EUR 38.8 billion; aviation emissions moved the other way, rising about 15 percent. The report also covers the first year of phased maritime-transport inclusion, making this an operating-policy result rather than a future pledge.
Why it matters
A functioning carbon market can reinforce cleaner electricity and generate public revenue for climate and energy investment. The uneven sector results also show why falling power emissions should not be mistaken for economy-wide progress or attributed to the trading system alone.
What to watch
- How member states document the use of auction revenue and whether funded programs deliver measurable emissions, affordability, and resilience benefits.
- Whether industrial, aviation, and maritime emissions begin sustained declines as coverage and rules tighten.
- Future Commission analysis separating the influence of the carbon price from renewables, fuel switching, demand, and industrial activity.
Sources & evidence
- Report on the functioning of the European carbon market in 2024Official European Commission report COM(2025) 735 final, document date December 3, 2025. It reports the 5.8 percent decline for stationary installations and EUR 38.8 billion in 2024 auction revenue.
- 2025 Carbon Market Report: EU ETS lowers power sector emissions and expands to maritime transportEuropean Commission summary dated December 3, 2025, supplying the sector context: power emissions fell nearly 11 percent, aviation emissions rose about 15 percent, and maritime coverage began phasing in.
- Technical information accompanying the 2025 Carbon Market ReportEuropean Commission staff working document SWD(2025) 388 final with supporting technical information for the official report.
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