What are ETS revenues used for?

From 2013 to the end of 2025, EU Emissions Trading System (EU ETS) auctions have raised over €258 billion in revenue. In 2025 alone, ETS revenues totalled more than €43 billion, with some €24 billion directly benefiting EU Member States. The remainder supplied the Innovation Fund and the Modernisation Fund, as well as the Resilience and Recovery Facility, supporting investments in cleantech innovation, energy transition, and energy security. In 2025, EU ETS allowances have also been auctioned for the Social Climate Fund.

Member States are required to use all collected ETS revenues, or an equivalent financial value, to support climate and energy action. These revenues can be directed towards a wide range of measures, including:

• Industrial decarbonisation (e.g., cleantech development, carbon capture and storage)
• Transport decarbonisation (e.g., investments in rail transport and cycle paths, financial support for the purchase of electric vehicles)
• Climate adaptation and resilience (e.g., flood defences, climate proofing infrastructure)
• Energy transition (e.g., deployment of renewables, grid development, energy efficiency improvement)
• Just transition (e.g., improving energy efficiency and clean tech support for low-income households)

The European Commission closely monitors compliance with this obligation to ensure that revenues are genuinely spent for the above purposes. Importantly, this requirement does not apply to support granted by Member States, in the form of State aid, to help electricity-intensive industries cover indirect carbon costs. These costs may arise when energy companies pass on to business consumers the cost of purchasing allowances through higher electricity prices. In 2024, 15 Member States used their ETS revenues to grant aid for indirect carbon costs incurred in 2023.

Reporting obligations

Every year, Member States report to the Commission on how they used their ETS revenues in the previous year, in line with the Governance Regulation. These reports are submitted using standardised templates and are published on the European Environment Agency (EEA) website. Reporting must be sufficiently detailed for the Commission to assess compliance with spending targets.

The latest available reporting covers the use of ETS revenues for 2024. The analysis of that reporting has been published in the 2025 Carbon Market report. Member States are required to submit their reports on the use of 2025 ETS revenues by 31 July 2026.

ETS revenue spending per year

Click to discover how ETS revenues were spent across the EU in a certain year.

ETS revenue spending per Member State

To find out how each EU Member State is using ETS revenues, explore the interactive map below. Click on a country to view:

• The percentage of ETS revenues spent on climate and energy action (click on the bottom left side to switch between years)
• A detailed country profile with further information (this feature will be coming soon)

Visibility of ETS revenue spending

Member States must ensure the financial transparency of measures and projects funded by ETS revenues. This transparency is crucial for demonstrating the positive impact of the ETS on people and businesses across the EU, and for building public trust and support for the EU’s climate action and energy transition efforts.

This visibility requirement also enhances accountability, highlights tangible benefits, and enables Member States to share best practices and learn from each other, ultimately amplifying the effectiveness of EU climate and energy policy.

Visibility requirements

When using ETS revenues to fund projects or support private entities, Member States should ensure that the EU’s contribution is clearly visible. To achieve this, Member States can take the following steps:

• Share project details and results through relevant communication channels
• Display plaques and/or billboards on project sites and equipment
• Use promotional materials, both physical (e.g., brochure) and digital (e.g., videos)
• When engaging in the above, Member States should always designate a focal point for project communication to coordinate outreach activities, ensuring consistency
• Inform the implementing body well in advance of any specific project communication or dissemination activities that may have a substantial media impact

Importantly, Member States can allocate a portion of their auction revenues to support visibility initiatives, which are eligible as administrative expenses under the EU ETS management framework.

EU label

Communication activities and channels of EU-funded projects should acknowledge the origin of the EU support received and ensure its visibility. An essential aspect is the correct and prominent display of the EU label and the label ‘(co-)Funded by the European Union Emissions Trading System’:

• ‘Funded by’: is used when a project receives support exclusively from the EU ETS and not from other European or national funding schemes.
• ‘Co-funded by’: is used when a project receives other EU or national support, in addition to the funding from the EU ETS.

These labels should be displayed in English, as well as the language(s) of the project beneficiary and/or the country of implementation, on all communication and knowledge-sharing activities.

The labels should also appear on notice boards at strategic locations visible to the public, in accordance with the contractual requirements associated with funding from the EU ETS.

The EU label should not be modified or merged with any other graphic elements or texts. If other logos are displayed in addition to the EU label, the EU label should have at least the same size as the biggest of the other logos.

How to display the EU label

Publications & dissemination material

Published and material (reports, brochures, commercials)