Greenhouse-gas emissions fell by 2.6% between 2010 and 2011 in the sectors covered by the EU’s emissions trading scheme (ETS), according to data released by the European Commission today (2 April).

Installations emitted 1,888 million tonnes of greenhouse gases last year, 114 million tonnes less than the amount of ‘credits’ they are given for free. The excess credits can be carried over into future trading periods.

A debate is under way about whether excess credits, which are accrued because emissions were lower than expected because of the economic crisis, should be removed from the ETS or ‘set-aside’ during the next trading period of the ETS, which starts in 2013.

“The lower than expected verified emission numbers could increase support for the set-aside of allowances in phase three of the ETS,” said Marcus Ferdinand, a senior market analyst with Thomson Reuters Point Carbon. “The outcome of the 2011 emissions data is below market expectations and will have an additional impact on the current low carbon prices.”

The power and heat sector saw the largest decrease in emissions, due to a mild winter and increased renewables generation. Emissions in the industrial sector were also significantly down due to declining production levels toward the end of the year.

Environmental campaign group WWF warned that the data points to an “imminent malfunctioning of the ETS”.

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