The EU ETS is a multi-country, multi-sector greenhouse gas (GHG) emissions trading system.
It is the world’s biggest emissions trading market, accounting for more than three-quarters of international carbon trading. It covers more than 11,000 installations and 45% of EU emissions. The scheme targets energy-intensive business activities and covers approximately 1,000 sites in the UK. Its aim is to achieve emissions reductions by placing a limit on the total emissions related to each business sector, allocating emissions allowances and allowing them to be traded in an EU-wide carbon market.
The EU ETS is currently in its third phase, which started in 2013 and will continue until 31 December 2020.