EU Directive 2009/29/EC on the Emissions Trading System
A European Union directive establishing a system for greenhouse gas emission allowance trading within the European Community.
The establishment of the EU Emissions Trading System (EU ETS) in 2005 was a major milestone in the global effort to tackle climate change. It was one of the key policies introduced by the European Union to help meet the EU’s greenhouse gas emissions reduction target of 8% below 1990 levels under the Kyoto Protocol. It works on a ‘cap and trade’ basis, where Member States are required to set an emissions cap for all the sectors covered by the EU ETS.