What is EU Emissions Trading System – EU ETS?

The European Union Emission Trading Scheme (EU ETS) is the first and largest emission trading system to date, for reducing GHG (greenhouse gas) emissions. The EU ETS cover more than 11,000 power stations and industrial plants in 31 countries, and flights between airports of participating countries. It is structured as a ‘cap-and-trade’ system that allows trading of emission allowances so that the total emissions of the installations and aircraft operators stays within the cap and the least-cost measures can be taken up to reduce emissions.