On 9 November 2026, the European Commission published its 2026 EU Climate Action Progress Report and Carbon Market Report. Both show that EU greenhouse gas emissions keep falling while clean technologies spread, but also that progress must speed up to reach the 2030 targets.
Where emissions are falling
| Area | 2025 trend |
|---|---|
| Emissions Trading System (ETS) | About 2% lower; still below the cap, but reductions have slowed |
| Industry | 3.3% lower, mainly in iron and steel, cement and chemicals |
| Maritime transport | 4% lower |
| Aviation | 0.2% higher |
| Effort Sharing sectors (buildings, road transport, agriculture, waste, small industry) | Broadly stable |
| Land use and forestry | Net carbon removals about 11% higher |
Clean energy is gaining ground
- 1.9 million battery-electric cars were registered in 2025, about one in six new cars.
- Wind and solar capacity reached 611 GW, roughly half of the EU’s total electricity generating capacity.
- Around 41 GW of heat pumps were installed in 2025, up from 26 GW in 2024.
The carbon market funds the transition
EU ETS revenues reached EUR 43.2 billion in 2025. Of this, EUR 23.9 billion went to Member States to invest in decarbonisation. In July 2026 the Commission proposed a reform of the ETS for the period 2030 to 2040.
Are we on track for 2030 and 2040?
The EU remains committed to cutting net emissions by at least 55% by 2030, and the amended European Climate Law, in force since April 2026, sets a binding target of a 90% cut by 2040 compared with 1990. The reports show that efforts must accelerate in the second half of the decade:
- Effort Sharing emissions are projected to fall by about 38.5% by 2030 compared with 2005, slightly short of the 40% target.
- The land sector faces a projected gap of 40 to 55 million tonnes of CO₂ equivalent against its 2030 target.
Nine Member States are not on track for their national Effort Sharing targets: Austria, Croatia, Cyprus, Germany, Ireland, Italy, Lithuania, Malta and Sweden. The Commission will ask each of them to submit a corrective action plan.
The cost of climate change
Climate-related extreme events have caused an estimated EUR 822 billion in economic losses in the EU since 1980. Around EUR 70 billion per year will be needed for adaptation up to 2050. In October 2026 the Commission presented an EU Climate Resilience Framework, including a proposal for a Climate Resilience Law.
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