Evaluating the EU Emissions Trading System: Take it or leave it? An assessment of the data after ten years

Since its inception in 2005, the EU ETS has changed the way that business is conducted in Europe by establishing a monetary value for the right to emit greenhouse gases that cause climate change. The scheme aims to limit and reduce greenhouse gas emissions from more than 12,000 power and manufacturing plants in 31 countries, which together account for around 45% of the EU’s greenhouse gas emissions (5% of global emissions). It is administrated by the European Commission (EC). Critics argue that stringent climate change policies in EU countries, without similar action in other countries, can only lead to a loss of competitiveness in global markets, with no real impact on global emissions (see box 2). Carbon- or emissions-trading is a market-based policy instrument that is designed to reduce emissions with minimal cost to society, while stimulating technological innovation to further reduce this cost in the futur