A ‘cap and trade’ system to reduce emissions via a carbon market.
What countries, sectors and gases does the EU ETS cover?
Under the European Climate Law, EU Member States will work collectively to become climate neutral by 2050.
In 2023, a new, separate emissions trading system was created: Emissions Trading System 2 (ETS 2).
For a transition that leaves no one behind
Improving our resilience to major shocks.
Limiting emissions year after year.
Putting into practice the ‘polluter pays’ principle.
Financial instruments that represent a tonne of CO₂ removed or reduced from the atmosphere.
Auctioning is the default method for allocating emission allowances to companies participating in the EU emissions trading system (EU ETS)...
Ensuring transparency and accuracy.
Keeping track of ownership of allowances.
Preventing market abuse and misconduct.
Emissions trading systems around the world.
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).First stepsThe...