Impact on a global scale
The European Union Emissions Trading Scheme (EU ETS) is the oldest and largest carbon pricing mechanism - it is a world pioneer. Many other jurisdictions are adopting similar decarbonization policy tools, inspired as they are by the EU example.
Carbon knows no borders, the fight against climate change is a universal issue. Reaching the current state of the EU ETS has been a bumpy road, and the mechanism has undergone various phases with different reforms.
The lessons learned throughout the past decades have created a pillar model that other countries look to as an example. Currently, 36 jurisdictions have established their own carbon trading schemes, with many others working on implementing ETS projects. The EU has even established a task force dedicated to sharing its expertise and experiences in carbon pricing with other nations.
Beyond this, Europe sends a clear signal of the global urgency of climate action with the implementation of the Carbon Border Adjustment Mechanism (CBAM). This policy ensures that goods consumed in Europe, regardless of where they are produced, have their CO2 emissions priced according to the ambitious EU standards. Following Europe's lead, other jurisdictions, like China and the US, are now considering introducing their own CBAMs.
Neither global warming nor carbon pricing should be addressed locally; the EU ETS is leading the way in a collective, massive effort.