EU Emissions Trading System / EU ETS
The first and largest emissions trading system and carbon market in the world. The EU ETS, which launched in 2005, works on a Cap and Trade model in which net emissions for each Member State are capped, and countries, companies, and other carbon-dense organizations can buy, sell, and trade carbon credits and emissions allowance units to facilitate their business activities. The EU ETS operates in the 27 EU countries, as well as Norway, Iceland, and Lichtenstein. A United Kingdom Emissions Trading Scheme (UK ETS) replaced the UK’s participation in the EU ETS on 1 January 2021.