European Union Emissions Trading Scheme
/ˌjʊərəˈpiːən ˈjuːnjən ɪˈmɪʃənz ˈtrædɪŋ skiːm/
Definitions
- (n.) A cap-and-trade system implemented by the European Union to reduce greenhouse gas emissions by allowing the trading of emission allowances among regulated entities.
The European Union Emissions Trading Scheme incentivizes companies to lower their carbon emissions through market mechanisms.
Forms
- european union emissions trading scheme
Related terms
See also
Commentary
The term specifically refers to the EU-wide system established as a key instrument of climate policy; precision in referring to the 'scheme' is important since it distinguishes this trading system from other national or regional carbon markets.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.