A message from October 2024 by the Air Pollution & Climate Secretariat analyses the 100 largest industrial polluters in the EU-27. It focuses mainly on the steel, cement and refining industries, which are responsible for most emissions. The report points to different approach to reducing emissions between the energy and industrial sectors, with industry benefiting from the free allocation of emission allowances. The authors point to the need for change in heavy industry and discuss the future of individual sectors in the context of the EU's climate goals. The report also notes that the emissions trading system only became more effective after 2018.

Main findings:

• Dominance of steel, cement and refineries: The top 100 industrial emitters are almost exclusively steel, cement and refinery plants. For example, the largest emitter in 2021 was the Austrian company Voestalpine Stahl Linz, with 8.7 million tonnes of CO2.
• Significant decrease in emissions from electricity production: Emissions from power plants have been cut by almost half since 2007, largely thanks to the rise of renewable energy sources. The document states that by 2023, wind and solar will supply more electricity to the EU (727 TWh) than coal (343 TWh).
• Stagnation of emissions from industry: In contrast to energy, emissions from industry (excluding power plants and aviation) have only seen a slight decrease. This is due to the free emission allowance system, which shields industry from the true cost of CO2. The document criticizes this practice, pointing out that in 2023, industry received more free allowances (450 Mt) than its actual emissions (433 Mt).
• The need for change in the industry: The document highlights that the industry must undergo fundamental changes to achieve carbon neutrality. Steel mills plan to replace coal and coke with green hydrogen, cement plants should reduce cement consumption and use alternative binders, and refineries must prepare for a decline in demand for petroleum products due to the electrification of transport.
• How the emissions trading system works: The paper notes that the Emissions Trading System (ETS) only became an effective tool for reducing emissions after 2018, when allowance prices increased due to political interventions. The ETS is currently considered a relatively effective mechanism.

The document presents a comprehensive overview of CO2 emissions in EU-27 industry and highlights the need for fundamental changes in industry to achieve carbon neutrality. The document criticizes the free allowance system and highlights the success of the emissions trading system in reducing energy emissions. Spring