15 November 2009

The European Emission Trading System (ETS) has been operational since January 2005. The scope of this cap and trade system contains around 12,000 installations in 27 Member States which are responsible for around 2 Billion tonnes (gigatonnes) of CO2 emissions each year. This amount represents 40% of the EU's total greenhouse gas emissions. The EU ETS is therefore the single largest greenhouse gas emitting sector in the European Union.

The first trading period of the EU ETS ran until the end of 2007. In January 2008 the second trading period of the system kicked off and lasts until the end of 2012. In 2007 European lawmakers decided to add emissions from aviation to the EU ETS. Airline operators will be covered by the system from 2011.

In 2008, the EU Member States and the European Parliament agreed on a dramatic review of the EU ETS. This amended EU ETS will start operating in January 2013. With an enlarged scope, including other greenhouse gases in addition to CO2, the revised EU ETS will cover more than 45% of the EU’s emissions.