ABSTRACT
The EU created its emissions trading system (EU ETS) as a key instrument to implement the Kyoto Protocol and to incentivise cost-effective emission reductions. Over time, the instrument has been continued and reinforced to deliver the ambitious targets the EU has taken under the Paris Agreement. Even if most of the operations of the EU ETS are contained to the EU, its international dimension is growing. Cooperation with constituencies having similar emission trading systems is intensifying, and since 2020, the EU ETS is linked with the Swiss emissions trading system.
