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You are here: Home / Environmental topics / Climate change / FAQ / What is the EU emission trading scheme?

What is the EU emission trading scheme?

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The EU Emissions Trading Scheme (EU ETS) is the European Union's climate change policy tool, which helps industries to cut their CO2 emissions in a cost-effective way. It requires a cap on emissions for all large CO2 emission sources.

In 2005, the EU ETS covered approximately:

  • 47 % of the total CO2 emissions in the EU-15;
  • 39 % of total greenhouse gas emissions in EU-15;
  • 49 % of the total CO2 emission in the EU-25;
  • 41 % of total greenhouse gas emissions in the EU-25.

In general, EU ETS information has been used by EU Member States as one input for calculating total CO2 emissions for the energy and industrial processes sectors in this report. However, an explicit quantification of the contribution of the EU ETS to total CO2 emissions at sectoral and sub-sectoral level is not yet available for EU-15 or EU-25.

In the EU-15, the ETS is estimated to cut 3.4 % from base-year emissions.

See more information on the European Commission website.

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