EU Cuts Emissions 37% Since 1990 but Climate Risks Mount, EEA Warns

A new European Environment Agency report finds the EU has reduced greenhouse gas emissions by 37% since 1990 despite 60% GDP growth over the same period, but warns that growing climate impacts and biodiversity loss threaten European competitiveness and economic stability. Weather and climate-related events caused more than EUR 738 billion in losses in the EU between 1980 and 2023.

The EEA's State of Europe's Environment report finds that the pace of EU annual emissions reductions has doubled since 2005, driven significantly by shifts in the energy mix. The share of renewable energy sources doubled since 2005, with almost a quarter of final energy use in 2023 coming from renewables and 45% of all electricity now generated by renewable sources. However, fossil fuels still account for almost 70% of EU gross available energy in 2023, pointing to the scale of additional transition required to reach the bloc's 2030 target of at least 55% net GHG reduction from 1990 levels.

The report reveals significant sectoral disparities in emissions reduction. Energy supply emissions fell 49% since 2005 and industry emissions declined 36%, while domestic transport emissions dropped only 6% and agriculture emissions by just 7%. Agriculture emissions are expected to remain nearly flat through 2030. The report also identifies major economic risks: climate impacts could cut EU GDP by 7% by end of century, with estimated losses of EUR 2.4 trillion between 2031 and 2050 if warming exceeds 1.5 degrees Celsius.

Beyond climate, the report signals a biodiversity crisis, finding 81% of EU habitats in poor or bad condition and describing the near-term outlook as bleak. European Commission Executive Vice-President Teresa Ribera warned that delaying climate action would increase costs, deepen inequalities, and weaken resilience. For India and other emerging economies, the report's findings carry relevance as a data-rich illustration of how economic development and emissions reduction can be decoupled, and of the costs that delayed action imposes on future generations.

Key figure — EUR 738 billion in weather and climate losses in EU from 1980 to 2023