Market based measures to reduce CO2 from aviation (ETS)

The European Union’s (EU) Emission Trading System (ETS) is governed by Directive 2003/87/EC of the European Parliament and of the Council of October 13, 2003, establishing a system for greenhouse gas emission allowance trading within the Union and amending Council Directive 96/61/EC (Text with European Economic Area (EEA) relevance). The EU ETS covers installations with heavy energy-use (power stations, industrial plants) and airlines.

The EU caps the total amount of certain greenhouse gases (GHG) that can be emitted by installations falling within the scope of the ETS. This cap is reduced over time to ensure that total emissions fall. Within the cap, companies receive or buy emission allowances which they can trade wit