The EU ETS is a cornerstone of the EU’s policy to combat climate change and its key tool for reducing greenhouse gas emissions cost-effectively. It is the world’s biggest carbon market.
Directive (EU) 2018/410 amending Directive 2003/87/EC to enhance cost-effective emission reductions and low-carbon investments. The revised EU ETS Directive entered into force on 8 April 2018 and sets the framework for the fourth trading period from 2021 to 2030.
On 14 July 2021, the European Commission proposed the revision of the EU ETS Directive under the “Fit for 55” package of legislative proposals, in view to achieve climate neutrality in the EU by 2050, including the intermediate target of an at least 55% net reduction in greenhouse gas emissions by 2030.Â