emissioonikauplemissüsteemi

The Estonian Emissions Trading System (ETS) is part of the European Union Emissions Trading System (EU ETS), the world's largest carbon market. It aims to reduce greenhouse gas emissions from industrial facilities and aviation in an economically efficient way. The system operates on the "cap and trade" principle. A cap is set on the total amount of certain greenhouse gases that can be emitted by installations covered by the system. Within this cap, companies receive or buy emission allowances, which they can trade. Companies that reduce their emissions can sell surplus allowances to those who need more. This creates a financial incentive to cut emissions.

In Estonia, the ETS covers large industrial installations, including power plants, oil refineries, cement production, and some manufacturing facilities, as well as intra-European flights. The allowances are allocated through auctions or free of charge, depending on the sector and specific circumstances, with the aim of moving towards full auctioning over time. The revenue generated from the auctioning of allowances is largely used by Estonia to support climate-related projects, investments in renewable energy, energy efficiency, and innovation. The system is overseen by the Ministry of the Environment and the Environmental Board, which monitor compliance and manage the allocation and trading of allowances. The EU ETS is periodically reviewed and strengthened to align with the EU's climate targets, such as those set out in the European Green Deal.