The emissions trading system (ETS) makes it possible to reduce the total amount of emissions covered. The emissions are thereby reduced where it costs the least to do so. In this way, climate protection goals can be achieved cost-effectively. Aircraft operators and greenhouse gas-intensive companies participate in the ETS.
The ETS is a quantity control instrument applying the “cap-and-trade” principle. It specifies a maximum amount of newly available emission allowances in the system (“cap”) that is reduced each year. Some of the emission allowances are allocated free of charge, and some are auctioned off. Each year, participants in the ETS must cover their emissions with emission allowances. These emission allowances can be traded freely, and can be used to cover own emissions or sold to other ETS participants.
Last modification 30.12.2020