Brussels:The European Commission has released the 2026 EU Climate Action Progress Report and Carbon Market Report, highlighting a continued decline in EU greenhouse gas (GHG) emissions and the expansion of clean technologies. The reports indicate increased availability of Emissions Trading System (ETS) revenues for EU Member States to invest in decarbonization efforts. These trends align with the EU's objectives of enhancing competitiveness, energy security, reducing dependencies, and building climate resilience.

According to Wam, the Climate Action Progress Report reveals a 1.6% reduction in EU net GHG emissions in 2025 compared to 2024, based on provisional data. Emissions under the EU Emissions Trading System (EU ETS) decreased by approximately 2% in 2025, while emissions in sectors governed by the Effort Sharing Regulation (ESR) remained stable. The data also show an improvement in the EU land carbon sink. Since 1990, emissions have dropped by 39%, while the EU economy has expanded by 74%, demonstrating a continued decoupling of economic growth from carbon emissions. The Carbon Market Report notes that EU ETS revenues rose to £43.2 billion in 2025, marking an 11% increase from the previous year.

Wopke Hoekstra, Commissioner for Climate, Net-Zero and Clean Growth, emphasized the importance of accelerating the transition to clean energy. He stated that Europe is committed to reducing emissions and expanding the use of clean technologies, while acknowledging the urgency of the climate crisis. Hoekstra highlighted that climate action is linked with competitiveness and independence, and stressed the need for faster implementation and investment in EU cleantech to achieve targets and ensure a cleaner economy and stronger industry for Europeans.