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The EU ETS

The EU ETS

The European Union Emission Trading Scheme (EU ETS) is the world's largest and most effective greenhouse gas emissions trading system. Established in 2005, it currently encompasses 38% of the EU's gas emissions from over 10,000 installations. It takes into account emissions from the industry, power generation, aviation, and maritime transportation. 

The scheme's purpose is straightforward: it is a practical tool to fulfill climate commitments. Europe will be carbon neutral by 2050 and will see its carbon footprint reduced by 55% until 2030. The EU-ETS enables regulators to control emissions and ensure that the bloc stays in line with these goals.

Since its inception, the EU ETS has grown increasingly robust and sophisticated. Regulatory adjustments have addressed market design imbalances, and sector expansions have gradually included more greenhouse gases. As a result, more participants are trusting and engaging in the carbon market, making medium- and long-term decisions based on the scheme's operation.

The European carbon market is both a policy tool and a marketplace - it is the best shot we have at collectively fighting climate change. 

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What are the main characteristics of the EU ETS?

What are the main characteristics of the EU ETS?

Since its inception in 2005, the European Union Emissions Trading System (EU ETS) has been a cornerstone of European climate policies.The EU ETS is both a financial mechanism and a regulatory framework to achieve the bloc’s ambitious environmental goals.
What is the pace of the EU ETS supply decrease?

What is the pace of the EU ETS supply decrease?

The greatest strength of the European Emissions Trading Scheme (EU ETS) is its steadily and gradually decreasing cap. As European climate ambition grows, the cap tightens faster, boosting the cap-and-trade scheme’s effectiveness in decarbonizing the economy.
What is the EUA Primary Market?

What is the EUA Primary Market?

European Union Allowances (EUAs) are issued by the European Commission, which either allocates them for free or sells them through auctions. This is what we call the European Union Emissions Trading Scheme’s (EU ETS) primary market.
Is the EU ETS threatened by major political changes in the EU ?

Is the EU ETS threatened by major political changes in the EU ?

What is the EU ETS 2?

What is the EU ETS 2?

What are the climate promises at the origin of the EU ETS?

What are the climate promises at the origin of the EU ETS?

The European Union Emissions Trading Scheme (EU ETS) turns climate ambitions into an effective market mechanism for decarbonization. As a global pioneer in climate action, Europe drives the adoption of ambitious environmental targets worldwide and often sets even higher domestic goals. Additionally, the EU learns from real-world environmental conditions to continuously strengthen its climate ambitions.
Why are there free EUAs in the EU ETS?

Why are there free EUAs in the EU ETS?

Carbon allowances are issued by regulators, with a portion allocated for free to covered installations. The EU ETS balances environmental goals with economic realities.
What sectors are covered by the EU ETS?

What sectors are covered by the EU ETS?

Since its inception, the European Union Emissions Trading Scheme (EU ETS) has expanded its coverage to encompass as many carbon emissions as possible.
What is the Market Stability Reserve of the EU ETS?

What is the Market Stability Reserve of the EU ETS?

The Market Stability Reserve (MSR) is a regulatory tool designed to balance the supply and demand of carbon allowances in order to ensure the effectiveness of the EU Emissions Trading Scheme (EU ETS).
What is the Fit-for-55?

What is the Fit-for-55?