Coal to Clean: EU Cuts Industry Carbon Emissions in Half

Over the past two decades, the European Union (EU) has quietly made one of the most impressive environmental turnarounds on the planet. Since 2005, the EU has cut greenhouse gas emissions from its most carbon-intensive sectors by nearly 50% a major win for climate action and a hopeful sign for the rest of the world.

Why This Matters

• Proves Emission Cuts Are Possible: The EU and companies like Ørsted have shown that slashing emissions isn’t just a goal it’s a reality.

• Encourages Global Action: These success stories offer a model for other countries and industries around the world.

• Supports Climate Goals: The EU is on track to meet its 2030 target of a 62% reduction in emissions from key sectors.

The Power of Policy: The EU Emissions Trading System

At the heart of this transformation is the EU’s Emissions Trading System (ETS), a cap-and-trade program that puts a price on carbon. By limiting the total emissions allowed and letting companies trade emission allowances, the system encourages polluters to cut back and rewards innovation in clean energy.

The ETS has become one of the world’s most effective tools for reducing industrial carbon output—and the numbers prove it.

Electricity Is Getting Greener

The biggest contributor to this emissions drop? The power sector.

In 2024 alone, emissions from electricity production fell by 12%. That’s thanks to big increases in clean energy:

• Renewable energy output rose by 8%.

• Nuclear energy generation jumped by 5%.

• Meanwhile, coal and gas electricity dropped by 15% and 8%, respectively.

  
  

As a result, the grid is greener than ever—and the EU is closer to breaking its dependence on fossil fuels.

Real-World Success: Ørsted’s Green Transformation

One of the most powerful examples of this shift comes from Denmark’s Ørsted, formerly one of Europe’s most coal-intensive energy companies, when it was known as DONG Energy.

In 2006, Ørsted generated 85% of its power from coal. But over the next decade, it transformed its business by investing in offshore wind energy, phasing out coal entirely by 2023, and selling off its oil and gas division. As a result, Ørsted cut its carbon emissions by 86% by 2019.

What made it possible?

• Aggressive investment in renewables (especially offshore wind).

• Participation in the EU ETS to align financial goals with carbon reduction.

• Clear sustainability targets, including a commitment to be carbon-neutral in operations by 2025 and net-zero across its entire value chain by 2040.

Ørsted’s transformation shows that reducing emissions isn’t just possible—it can also drive innovation, create jobs, and strengthen a company’s bottom line.

Not All Sectors Are Equal

While many industries are cutting emissions, progress isn’t universal.

• Cement: Production saw a 5% reduction in emissions, due to lower output.

• Fertilizer: Production actually increased emissions by 7%.

• Aviation: Emissions rose by about 15%, in part because the ETS was expanded to include more international flights.

This mixed picture shows that while the overall direction is positive, certain sectors still have a long way to go.

A Global Blueprint and a Call to Act

The European Commission has called these results proof that the ETS is working and they’re right. With the right mix of policy, innovation, and investment, it’s possible to cut emissions while growing a clean, resilient economy.

As the climate crisis accelerates, the EU’s progress and Ørsted’s bold transformation remind us: it’s not too late. Change is possible. And it’s already happening.

As the climate crisis accelerates, the EU’s progress reminds us: it’s not too late. Change is possible. And it’s already happening.