How does the European carbon market work?

29 October 2015 - Foreword of the week

Managing greenhouse gas emissions plays an important role in helping our economies follow a low-carbon trajectory. The objective of an emissions trading scheme is to help incentivize economic players from main emitting sectors – such as energy and industry – to reduce their CO2e emissions.

I4CE – Institute for Climate Economics, IFP Energies nouvelles and ADEME (French Environment and Energy Management Agency) present key facts on the functioning of the largest and oldest emissions trading scheme in the world: the European Union Emissions Trading Scheme.

To learn more

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Annex 2 – Methodology note (2025 Edition)

How does the European carbon market work?

Can the next EU budget point the way to an investment plan for climate transition?

What’s next for climate finance? From Seville to Belém

Annex 2 – Methodology note (2025 Edition)