- The EU has achieved reduced greenhouse gas emissions by 37% since 1990, while GDP rose by 60%.
- Climate change poses economic risks, with €738 billion in losses since 1980.
The European Union (EU) reduces greenhouse gas emissions while still confronting climate and environmental risks. According to a European Environment Agency (EEA) report, emissions are down by 37% since 1990. At the same time, Europe’s economy has grown by 60%.
The report is part of the EEA’s five-yearly State of Europe’s Environment publications, which assess progress on climate, sustainability, and biodiversity across the continent.
The EU Climate Law, adopted in 2021, set the target of achieving climate neutrality by 2050 and committed the bloc to reducing emissions by at least 55% by 2030. Furthermore, the Commission has proposed a 90% reduction target by 2040, which is still under debate.
The EEA report highlights major achievements. Since 2005, the pace of emission reductions has doubled. Renewable energy now provides almost a quarter of Europe’s final energy consumption. Impressively, 45% of electricity across the EU comes from renewable sources. Coal and other fossil fuels have steadily declined.
Even with this progress, fossil fuels remain Europe’s dominant energy source. In 2023, they made up nearly 70% of available energy. Therefore, the EEA stressed the need for greater investment in renewables, electrification, and cleaner industrial fuels.
Sector-by-sector progress is uneven. Since 2005, energy supply emissions have fallen by 49% and industry by 36%. However, domestic transport fell by only 6% and agriculture by just 7%. While transport is expected to improve, agriculture will likely remain flat until 2030.
Economic risks from climate change are growing. Between 1980 and 2023, weather-related events caused over €738 billion in damages, more than €162 billion of which occurred in just the past three years. If warming exceeds 1.5°C, EU GDP could shrink by 7% by the end of the century.
Biodiversity is also under severe threat. Alarmingly, 81% of European habitats are in poor or bad condition. The report described the short-term outlook for ecosystems as “bleak.” Previous restoration targets were not met, and pressures on ecosystems remain high.