EU Emissions Trading System (EU ETS)
EU carbon market created by Directive 2003/87/EC and operating since 2005 on a cap-and-trade basis: each allowance permits one tonne of CO₂e and the cap falls every year. It covers power and heat generation, heavy industry, aviation and maritime transport. A second system (ETS2) for buildings and road transport has been postponed to 2028.
See also: Carbon Border Adjustment Mechanism (CBAM)
Reference source: climate.ec.europa.eu
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