EUEØSdirektiv

EUEØSdirektiv, or the European Union Emissions Trading System Directive, is a piece of European Union legislation that establishes a cap-and-trade system for greenhouse gas emissions. Its primary goal is to reduce emissions from industrial installations and aviation in a cost-effective manner. The directive sets an overall limit, or cap, on the total amount of certain greenhouse gases that can be emitted by covered installations and aircraft operators. Within this cap, companies receive or buy emission allowances, which they can trade with each other. If a company emits more than it has allowances for, it must purchase additional allowances or face penalties. Conversely, companies that reduce their emissions can sell their surplus allowances.

The directive has been revised and updated over time to strengthen its environmental ambition and improve its functioning. Key sectors covered include power generation, energy-intensive industries such as cement and steel production, and intra-European aviation. The scope and stringency of the cap are progressively tightened over time, driving emission reductions. The EUEØSdirektiv is a cornerstone of the EU's climate policy and plays a significant role in the bloc's efforts to meet its greenhouse gas reduction targets. It aims to provide a clear price signal for carbon emissions, thereby incentivizing investment in cleaner technologies and practices.