Glossary · Sustainability policy

What is ETS?

Also called EU Emissions Trading System.

Definition

ETS means: The EU ETS is the EU Emissions Trading System, a cap-and-trade framework for greenhouse gas emissions from covered sectors. Source: EUR-Lex: EU Emissions Trading System Directive.

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Why it matters

ETS prices and coverage shape decarbonisation incentives and connect directly to measures such as CBAM.

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Frequently asked

What is ETS?

The EU ETS is the EU Emissions Trading System, a cap-and-trade framework for greenhouse gas emissions from covered sectors.

Why does ETS matter in EU policy?

ETS prices and coverage shape decarbonisation incentives and connect directly to measures such as CBAM.

Where can I verify the definition of ETS?

Lex cites EUR-Lex: EU Emissions Trading System Directive for this definition and links the source records on this page.

Official sources

Definitions are short paraphrases of official records, not legal advice. For binding text, use the linked EUR-Lex act, Official Journal or EU institution page.

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