According to the annual report on the functioning of the European carbon market, greenhouse gras (GHG) emissions from installations covered by the EU ETS decreased by 4.1% (around 73 MtCO2eq) to 1,682 MtCO2eq in 2018, thanks to a 7.3% drop in emissions from the power and heat production sector (down to 913 MtCO2eq). Verified emissions from the industrial sector remained stable (-0.1%) at 769 MtCO2eq, while those from aviation grew by 3.9% to 67 MtCO2eq.
In 2018, higher CO2 prices contributed to double revenues for Member States from selling ETS allowances to €14bn (compared to 2017). Most of these revenues (around 70%) were or will be invested in advancing climate and energy objectives, which is above the 50% required in the legislation. Placing allowances in the Market Stability Reserve continued in 2018 and 2019 (1.65 billion allowances), reducing the 2019 auction volume by nearly 40% i.e. almost 400 million allowances.
Moreover, new implementing legislation on free allocation, the Innovation Fund, auctioning, monitoring, reporting, accreditation and verification (MRVA), and the Union Registry was adopted in 2018.
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