The EU ETS is a carbon emission trading scheme that requires polluters to pay for their greenhouse gas (GHG) emissions. Launched in 2005, it is the world’s first carbon market and among the largest ones globally. It helps bring overall EU emissions down while generating revenues to finance the green transition. It covers emissions from the electricity and heat generation, industrial manufacturing and aviation sectors - which account for roughly 40% of total GHG emissions in the EU. It started covering emissions from maritime transport in 2024. It operates in all EU countries plus Iceland, Liechtenstein and Norway, and is linked to the Swiss ETS (since 2020).