Learn more about the basics of the EU ETS and its functioning.
What countries, sectors and gases does the EU ETS cover?
Explore how ETS revenues are used across the EU
Limiting emissions year after year.
Improving our resilience to major shocks.
Putting into practice the ‘polluter pays’ principle.
Mitigating the risk of carbon leakage.
Ensuring transparent and accurate emissions trading under the EU ETS.
Keeping track of ownership of allowances.
Financial instruments that represent a tonne of CO₂ removed or reduced from the atmosphere.
Emissions trading systems around the world.
Supporting partner countries to develop effective carbon pricing policies and robust approaches to international carbon markets.
Preventing market abuse and misconduct.
Set up in 2005, the EU ETS is the world’s first international emissions trading system. It is now in its fourth phase (2021-2030).
This page was last updated on 7 August 2025