Europe to revamp its green deal
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The EU Emissions Trading Scheme (EU ETS) is an effort to reduce greenhouse gases by putting a price on each tonne of carbon emitted by some 12,000 EU businesses and aircraft operators
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EU-27 greenhouse gas emissions (million tonnes CO2 equivalent)
EU-27 projections


2000 2005 2010 2015 2020 2025 2030

4,543
4,647
4,196 Effects of 2007-08 financial crisis
3,880
3,749
2,210

2005-19: EU ETS saves almost 1 billion tonnes of CO2

2005, EU ETS: World's largest carbon-trading scheme undertakes
to meet Kyoto Protocol target of 8% reduction in greenhouse gas emissions from 1990 levels, to limit temperature increases to 1.5°C

2030: European Commission’s Fit for 55 plan aims to cut emissions by 55% from 1990 levels
 
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EU ETS cap and trade system 

Emissions limit
Decreases each year

Company 1: Has insufficient allowances to cover emissions deficit. Must purchase allowances

Company 2: Has emission allowance surplus. Can sell unused allowances

2021: Allowance costs €30 per tonne of CO2
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Sources: Bloomberg, Euractive.com, Tax Foundation, PNAS
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