The European Parliament is one of the main legislative institutions of the European Union, composed of 705 directly elected representatives from all EU member states. In the context of carbon markets, it plays a crucial role in shaping climate policy and the EU ETS framework through its legislative powers.
The Parliament works alongside the European Council and European Commission to review, amend, and approve key regulations affecting carbon markets. It has been instrumental in strengthening the EU's climate ambitions, including the recent reforms to the EU ETS under the "Fit for 55" package, which aims to reduce greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels.