EU Emissions Trading System (EU ETS) What is the EU ETS?Learn more about the basics of the EU ETS and its functioning.Scope of the EU ETSWhat countries, sectors and gases does the EU ETS cover?ETS2: buildings, road transport and additional sectorsA new, separate emissions trading system to advance emission reductions in more sectors.Social Climate FundSupporting the most vulnerable to ensure a just, green transition.Market Stability ReserveImproving our resilience to major shocks.EU ETS emissions capLimiting emissions year after year.Auctioning of allowancesPutting into practice the ‘polluter pays’ principle.Use of international creditsFinancial instruments that represent a tonne of CO₂ removed or reduced from the atmosphere.Free allocationMitigating the risk of carbon leakage.Monitoring, reporting and verification of EU ETS emissionsEnsuring transparency and accuracy.Union RegistryKeeping track of ownership of allowances.Ensuring the integrity of the European carbon marketPreventing market abuse and misconduct.International carbon marketEmissions trading systems around the world.Development of EU ETS (2005-2020)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).International carbon pricing and markets diplomacySupporting partner countries to develop effective carbon pricing policies and robust approaches to international carbon markets.
ETS2: buildings, road transport and additional sectorsA new, separate emissions trading system to advance emission reductions in more sectors.
Use of international creditsFinancial instruments that represent a tonne of CO₂ removed or reduced from the atmosphere.
Development of EU ETS (2005-2020)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).
International carbon pricing and markets diplomacySupporting partner countries to develop effective carbon pricing policies and robust approaches to international carbon markets.
