The EU Emissions Trading System explained


the Earth’s climate is changing and each one of us plays a role in the products we buy in the electricity we use and in the energy that powers our businesses manufacturing agriculture transport waste power generation and other sectors release carbon dioxide and other gases into the atmosphere where they trap heat from the Sun but more carbon dioxide traps more of the heat leading to global warming the result changes in our climate with ripple effects on weather food production water supplies human health and more but there are smart ways forward these include emissions trading which is the cornerstone of the European Union’s strategy to tackle climate change head-on for more than a decade the EU has worked to cut its greenhouse gas emissions with the help of the world’s first largest and longest-running international system for trading emissions allowances and the system keeps growing stronger in a nutshell the –use emissions trading system or ETS creates a financial incentive for the biggest emitters to cut back how well since 2005 the ETS has set a cap on the total amount of greenhouse gases companies can emit each year and requires monitoring of these emissions a fixed number of allowances which are the currency of the carbon market are issued and each year companies hold enough allowances to cover their emissions or face significant fines don’t have enough cut your emissions or buy extra allowances from another emitter have extra allowances keep them for next year or sell them this flexibility ensures that emissions are cut where it costs the least to do so over time the cap is reduced fewer allowances are issued techniques to cut emissions are developed and total emissions drop companies have a financial incentive to cut their emissions or pay others to do so today this cap-and-trade system covers around half the –use emissions and more than three-quarters of the International carbon market interest is growing among business and government leaders around the world the e use ETS proves that putting a price on carbon is possible and makes economic sense this flexible cost-effective and business friendly approach is helping the EU move faster toward a low-carbon greener future visit our website to find out more about how emissions trading works to secure our future [Music]

5 thoughts on “The EU Emissions Trading System explained

  1. In some years this trading system will possibly evolve to a financial trading system. See what happened with the financial trading system on future food productions of big food organizations world wide (food crises 2007-8). We hopefully start to recognize that the free trading and financial systems is not what evolves anymore our societies but what destroys them.. Who insists that a trading (and/or financial) system is capable to solve the problem that itself created ? …

  2. I am certainly in favour of action on climate change, and ETS is a reasonable approach, but as long as the price of the carbon emission allowances are as low as they currently are, the ETS will have a negligible or even counterproductive effect. Other emission/renewables/energy schemes also interfere with the ETS and vice versa, which causes problem. This has to be fixed.

  3. Best way to reduce emissions is to reduce your energy use / costs. Try ideas like https://energyelephant.com/createAccount or https://nest.com/.

  4. I don't like it. Another way for the big wigs in European politics to meddle in the affairs of smaller countries. The technology is there for the world to go 100% green but nobody wants to do what needs to be done because of our present social and economical infrastructure. We need reform, not these stupid "EU Emission Trading Systems." Europe's way of showing the world that they are actually doing something unlike the majority of countries on the planet.

    P.S. Global warming is real. Turn back the clock 100 years and you'll see the difference. Do some research, don't cherrypick the one report out of thousands that speaks against it.

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