REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL Report on the functioning of the European carbon market
The EU Emissions Trading System (EU ETS) has been the cornerstone of the EU's strategy for reducing greenhouse gas (GHG) emissions from industry, electricity and heat production since 2005. It contributes significantly to achieving the overall EU target of cutting GHG emissions by 20% from 1990 levels by 2020, which the EU is on track to surpass.
This Report on the functioning of the European carbon market is presented in accordance with the requirements of Articles 10(5) and 21(2) of Directive 2003/87/EC1 (EU ETS Directive). The objective of the report is to provide a snapshot of developments in the European carbon market on an annual basis. The report covers the year 2019, but also presents developments in the first half of 2020.
Looking towards the next decade, the Commission’s Communication on the 2030 Climate Target Plan proposed to increase the EU’s 2030 GHG emissions reductions target from 40% to at least 55% compared with 1990 levels. To deliver on this higher ambition, the Commission will, by June 2021, review and propose to revise where necessary, all relevant climate-related policies. As part of the broader package of legislation under the European Green Deal, the EU ETS will also be revised, including a possible extension of the system to new sectors.