Compare ETS
Use this function to compare the design elements and characteristics of up to three ETSs from around the world.
EU Emissions Trading System (EU ETS)
General Information
Operational since 2005, the European Union Emissions Trading System (EU ETS 1) is the oldest cap-and-trade system in force and the largest in terms of the trading volume and value. It remains a cornerstone instrument of the EU’s policy framework to combat climate change and reduce GHG emissions cost-effectively.
Until 2023, the EU ETS 1 covered emissions from electricity and heat generation plants, manufacturing installations in Europe, and aircraft operators flying between airports in the European Economic Area (EEA) and from the EEA to Switzerland and to the UK. In January 2024, it was extended to cover emissions from maritime transport and in aviation, emissions from most flights to and from the EU’s nine outermost regions as well as departing flights from these outermost regions to Switzerland and the UK. Overall, the EU ETS 1 covers around 35%* of the bloc’s total emissions, with coverage declining compared to the previous year as a result of significant emissions reduction in the power sector in 2023.
The EU ETS 1 is currently in its fourth trading phase (2021 to 2030). Every year, covered entities must surrender allowances for their emissions under the EU ETS 1. Auctioning is the main method of distributing allowances, with free allocation, based on benchmarks, used to address the risk of carbon leakage.
The EU ETS 1 was revised in 2023 in the context of the “European Green Deal” to align the system with the EU’s 2030 climate target of at least a 55% net emissions reduction compared to 1990 levels. The revision is now in force and included:
- an increased ambition and expanded scope of the EU ETS 1, to maritime transport, and introduced a new, separate emissions trading system for buildings, road transport and additional sectors** (EU ETS 2, to start in 2028) ***;
- a strengthened the Market Stability Reserve (MSR);
- an update to the EU ETS 1 regarding aviation;
- updated rules for monitoring and reporting of emissions from maritime transport;
- the creation of the Social Climate Fund (starting in 2026) to complement the new EU ETS 2; and
- the establishment of a Carbon Border Adjustment Mechanism (CBAM) to address the risk of carbon leakage from specific sectors under the EU ETS 1 (to gradually replace free allocation).
Since June 2023, EU Member States are obliged to use all relevant ETS revenue (or an equivalent financial value) to support climate action and energy transformation. By the end of 2025, the EU ETS has raised a cumulative total of EUR 265.7 billion (USD 297.1 billion) since its inception.
* Based on 2023 data. Preliminary data for 2024 suggest a further decrease to 33%.
** Mainly industry sectors not covered under the existing EU ETS.
*** See EU ETS 2 factsheet.
The EU ETS 1 in 2024 saw a 5.7% year-on-year reduction in emissions from stationary sources. This reduction was largely driven by the power sector, where renewable electricity production (primarily from wind and solar) increased substantially, coupled with the decrease in both coal and gas. With this development, emissions from installations at the start of 2025 were around 50% below 2005 levels and well on track to achieve the 2030 target of a 62% reduction. Emissions from aviation under the EU ETS 1 continued to increase in 2024, partially due to broader geographic coverage.
In 2025, the compliance obligation for maritime transport operators commenced. Shipping companies must surrender allowances equal to 40% of their verified 2024 CO2 emissions and 70% for 2025. From 2026 onwards, the scope of covered emissions in the sector expands to include CH4 and N2O.
In aviation, free emission allowances for operators were down to 50% in 2025 and are fully phased out as of 2026. In parallel, a per-tonne financial support for sustainable aviation fuels (SAF) was introduced to incentivise uptake while free allocations are phased out.
Since 2020, the EU ETS 1 is linked with the Swiss ETS. In May 2025, the EU and the UK announced their intention to link their respective ETSs. Subsequently, the EU Council granted the Commission a negotiating mandate, authorising it to start formal talks with the UK on an ETS linking agreement.
From 2026, the definitive stage of the EU’s CBAM starts. The mechanism is introduced gradually alongside the phase-out of free allowances in CBAM-covered sectors in the EU ETS 1. By September 30, 2027, EU importers will have to surrender CBAM certificates for 2.5% of the GHG emissions embedded in relevant goods imported in 2026.
Emissions & Targets
3,105.6 MtCO2e (2023)*
* National emissions for the EU-27 reported to the UNFCCC and to the EU in May 2025 under the “EU Governance Regulation”. )
By 2030: Reduce net emissions to at least 55% below 1990 GHG levels (“European Climate Law”)
By 2040: Reduce net emissions to 90% below 1990 GHG levels (European Climate Law, amended)*
By 2050: Net zero (European Climate Law)
* Includes a contribution of high-quality international credits under Article 6 of the Paris Agreement.
EUR 73.43 (USD 82.97) (average 2025 auction price)
EUR 74.35 (USD 84.01) (average secondary market price 2025)
Size & Phases
PHASE 1: Three years (2005 to 2007)
PHASE 2: Five years (2008 to 2012)
PHASE 3: Eight years (2013 to 2020)
PHASE 4: Ten years (2021 to 2030)
An absolute cap limits the total emissions allowed in the system and is fixed ex-ante. It is set to reduce covered sectors’ emissions by 62% compared to 2005 levels by 2030.
PHASE 1 and PHASE 2: The cap was calculated bottom-up, based on the aggregation of the national allocation plans of each Member State. Phase 1 started with a cap of 2,096 MtCO2e in 2005; Phase 2 with a cap of 2,049 MtCO2e in 2008.
PHASE 3:
Installations: A single EU-wide cap was calculated based on emissions monitoring and set at 2,084 MtCO2e in 2013. It was reduced annually by a linear factor of 1.74% (applied to the midpoint of 2008 to 2012 baseline emissions). This translated into a year-on-year reduction of around 38 million allowances and resulted in a cap of 1,816 MtCO2e in 2020.
Aviation: Included in the EU ETS 1 in 2012, with a cap calculated separately. Legally, the system covers all outgoing and incoming flights to the EEA. The 2012 cap for aviation amounted to 221 MtCO2e (95% of 2004 to 2006 emissions). In 2013, however, the EU temporarily limited ETS obligations to flights within the EEA to support the development of a global market-based measure to reduce aviation emissions by the International Civil Aviation Organization (ICAO). The number of aviation allowances put into circulation in 2013 to 2016 was reduced to 38 million allowances annually. This ‘stop-the-clock’ limited scope of the EU ETS for aviation was extended until the end of 2026.
PHASE 4:
From Phase 4, the linear reduction factor applies annually to the overall cap. The factor is set at 2.2% per year (of 2008 to 2012 baseline emissions) for the period 2021 to 2023, 4.3% for 2024 to 2027 and 4.4% from 2028. In addition, the cap is also reduced in two steps, by 90 million allowances in 2024 and 27 million allowances in 2026.
Installations: A single EU-wide cap reduced annually. Following the 2023 ETS revision, the cap in 2026 is determined to be 1,185 MtCO2e. From 2021, the UK was no longer part of the EU ETS 1 (except for electricity generators in Northern Ireland).
Maritime: The 2026 cap was increased by 2.4 million allowances to reflect the inclusion of CH4 and N2O emissions into the EU ETS 1 scope.
Aviation: The aviation cap in 2026 amounted to 24.9 MtCO2e.
From Phase 4, a Member State may cancel allowances from their auction share if they take additional policy measures that result in a closure of electricity generation capacity. The quantity of allowances cancelled shall not exceed the average verified emissions of the installation from five years preceding the closure.
The EU ETS 1 scope in terms of activities and GHGs is specified in Annex I and Annex II of the “ETS Directive”.
PHASE 1: Power stations and other combustion installations with >20 MW thermal rated input (except hazardous or municipal waste installations), industry (various thresholds) including oil refineries, coke ovens, and iron and steel plants, as well as production of cement, glass, lime, bricks, ceramics, pulp, paper, and cardboard.
PHASE 2: Several countries included NOx emissions from the production of nitric acid. The EU ETS 1 also expanded to include Iceland, Liechtenstein, and Norway.
Aviation: Emissions from international aviation were included in the EU ETS in 2012 (>10,000 tCO2/year for commercial aviation; >1,000 tCO2/year for non-commercial aviation since 2013). However, the EU temporarily limited the scope of the EU ETS 1 for aviation to flights within the EEA. Exemptions for operators with low emissions were introduced.
PHASE 3: Carbon capture and storage installations, production of petrochemicals, ammonia, nonferrous and ferrous metals, gypsum, aluminum, as well as nitric, adipic, and glyoxylic acid (various thresholds) were added to the scope.
Aviation: In 2017, the limited scope for aviation was extended until 2023 to support the development of a global measure for aviation emissions under ICAO. Under the “Linking Agreement” between the EU and Switzerland, from 2020, the EU ETS 1 covers emissions from outgoing flights to Switzerland.
PHASE 4: Amendments introduced in view of the UK’s departure from the EU and in the 2023 revision of the EU ETS 1.
Power and industry: The scope of ETS and benchmarks used for free allocation was broadened from 2024 to remove barriers for the deployment of new technologies such as green hydrogen or hydrogen-based steel.
Aviation: Under the “Trade and Cooperation Agreement” between the EU and the UK, the EU ETS 1 applies to emissions from flights departing from the EEA to the UK from 2021 (the UK ETS applies to flights departing to EEA airports).
Emissions from most flights to and from the EU’s nine outermost regions as well as from departing flights from these regions to Switzerland and the UK were added to the scope from 2024.
Maritime: From 2024, emissions from all large ships (of 5,000 gross tonnage and above) entering EU ports are covered by the EU ETS 1, regardless of the flag they fly, covering:
- 50% of emissions from voyages starting or ending outside the EU;
- 100% of emissions that occur between two EU ports and when ships are in EU ports.
Initially, the scope extension to maritime transport covers only CO2 emissions. From 2026, CH4 and N2O emissions will also be covered.
The obligation for maritime companies to surrender allowances for their emissions is being gradually phased in.
- 2025: for 40% of emissions reported in 2024;
- 2026: for 70% of emissions reported in 2025;
- 2027 onward: for 100% of emissions reported in 2026 and later years.
To ensure environmental integrity during the phase-in, Member States will cancel the number of allowances equivalent to the difference between the surrendered allowances and the verified emissions in 2024 and in 2025.
Point source
8,704 stationary installations, 393 aircraft operators, 3,313 shipping companies (2024)
Allowance Allocation & Revenue
Share of auctioned allowances 2021 to 2025: up to 57% of the cap
PHASE 1: Allocation was based on Member States’ national allocation plans. Allowances were allocated through grandparenting. Some Member States used auctioning and some used benchmark-based allocation.
PHASE 2:
Auctioning: Eight Member States (Germany, United Kingdom, the Netherlands, Austria, Ireland, Hungary, Czechia, and Lithuania) held auctions corresponding to ~3% of the total allowance allocation.
Free allocation: ~90% of allowances were allocated for free.
PHASE 3:
Auctioning: The main method of distributing allowances was via auction, accounting for up to 57% of the cap. Of the share of allowances to be auctioned, 88% were distributed to Member States based on verified 2005 or average 2005 to 2007 emissions; 10% were allocated among 16 lower-income Member States under the solidarity provision; and the remaining 2% were allocated between the Member States that had reduced their emissions by at least 20% compared to the applicable base year under the Kyoto Protocol.
Free allocation: A significant volume of allowances was allocated for free to address the risk of carbon leakage, based on sector-specific performance benchmarks. As the demand for free allowances exceeded the volume of allowances available, the free allocation of each installation was subject to a uniform cross-sectoral correction factor — which was revised in 2017.
Power: Auctioning, with an optional transitional free allocation for the modernisation and diversification of electricity generation in ten lower-income Member States. At the end of Phase 3, eligible Member States could decide to continue using this option in Phase 4, monetize remaining allowances, or transfer them to the Modernisation Fund, created under the EU ETS 1 in 2018.
Industry: Free allocation based on sector-specific performance benchmarks, which reflect an average emissions intensity per unit of product of the most efficient 10% of installations in each sector. The European Commission established 54 benchmarks in 2011, using 2007 and 2008 activity data and literature sources (when data was missing). Sectors deemed at risk of carbon leakage received free allocation at 100% of the relevant benchmark. Sub-sectors deemed not at risk of carbon leakage had free allocation reduced gradually from 80% of the respective benchmark in 2013 to 30% by 2020.
The carbon leakage risk was assessed against emissions intensity and trade exposure:
- direct and indirect cost increase >30%; or
- non-EU trade intensity >30%; or
- direct and indirect cost increase >5% and trade intensity >10%.
Cost intensity was determined by the formula:
[Carbon price × (direct emissions × auctioning factor + electricity consumption × electricity emission factor)]/ gross value added
Trade intensity was determined by the formula:
(imports + exports)/(imports + production)
New Entrants’ Reserve (NER): 5% of the cap for Phase 3 was set aside to assist new installations or to cover installations whose capacity significantly increased since their free allocation had been determined. 300 million allowances from the reserve were allocated to the NER300, a large-scale funding program for innovative low-carbon energy demonstration projects.
Aviation: 15% of allowances were auctioned and 82% were allocated to aircraft operators for free. The remaining 3% constituted a special reserve for new entrants and fast-growing airlines. The number of allowances put into circulation for the aviation sectors was reduced to reflect the temporary limitation of the scope of the EU ETS 1 to flights within the EEA.
PHASE 4:
Auctioning: The main method of distributing allowances remains auctioning, accounting for up to 57% of the cap. Of the share of allowances to be sold, 90% are distributed to Member States based on their share of verified emissions, with 10% distributed among the lower-income Member States under the solidarity provision.
Free allocation: A significant volume of allowances is allocated for free to address the risk of carbon leakage, based on sectors-specific performance benchmarks. Benchmark values are updated twice in Phase 4 to reflect technological progress in different sectors. In 2021, the European Commission updated benchmark values for the first time* and they applied for 2021 to 2025. The values are adjusted for technological progress on a yearly basis. An annual reduction rate is determined for each benchmark. For the steel sector, which faces high abatement costs and leakage risks, a fixed reduction rate applies.
The uniform cross-sectoral correction factor for the adjustment of free allocation is one for 2021 to 2025.
The Phase 4 cap includes a buffer of more than 450 million allowances, earmarked for auctioning, which can be made available if the initial free allocation volume is fully absorbed (thereby avoiding the need to apply the cross-sectoral correction factor).
In 2026, a second allocation period of the Phase 4 starts. Free allocation for 2026 to 2030 will become conditional on the implementation of energy efficiency measures (based on audits or energy management systems) and of carbon neutrality plans for the worst performing installations, in order to incentivize decarbonization.
Power: Auctioning, with an optional transitional free allocation for the modernization and diversification of electricity generation in ten lower-income Member States. Three of the eligible Member States decided to continue using this option in Phase 4, which could have been used until the end of 2024. After this time, any leftover allowances were added to a Member State’s share of allowances to be auctioned or its share of the Modernisation Fund.
Industry: Updated benchmark values that apply for 2021 to 2025 were calculated based on activity data for installations over 2016 to 2017, supplied by Member States. The updated values were compared to the original benchmarks to determine the reductions to be applied over the 15-year period between 2007/08 and 2022/23. Benchmarks could be reduced between 3% and 24% over this period. In total, 31 out of 54 benchmarks have been reduced by the maximum rate of 24%.
The update to the benchmarks for the period from 2026 to 2030 is based on increased annual reduction rates, which are intended to stimulate further industrial transformation. As of 2026, the minimum rate increases from 0.2% to 0.3% per year, and the maximum rate from 1.6% to 2.5%.
There are revised rules covering adjustments to free allocation when an installation makes a significant change to its production. These rules apply from Phase 4. The threshold for adjustments is a 15% increase or decrease in production. Adjustments to free allocation are issued based on yearly production data reports that operators submit to national competent authorities. Adjustments to the level of free allocation are made from the New Entrants’ Reserve.
Carbon leakage rules: The third carbon leakage list, adopted in February 2019, applies for 2021 to 2030. The list includes a reduced number of sectors classified at risk of carbon leakage. Free allocation for other sectors will be discontinued by 2030 (except for district heating).
Carbon leakage is assessed against a composite indicator of trade intensity and emissions intensity, according to the following criteria:
Trade intensity x emissions intensity > 0.2
Trade intensity x emissions intensity > 0.15 but < 0.2; qualitative assessment will follow based on abatement potential, market characteristics, and profit margins.
Emissions intensity is determined by:
[direct emissions + (electricity consumption x electricity emission factor)]/ gross value added
Trade exposure is determined by:
(imports + exports)/(imports + production)
Carbon Border Adjustment Mechanism: Free allocation to specific sectors will be gradually phased out from 2026 to 2034, in parallel to the phase-in of the EU’s CBAM for third-country imports. Those sectors are iron and steel, cement, aluminum, fertilizers and hydrogen. The mechanism applies equally to imports from all countries outside the EU (except Liechtenstein, Iceland, and Norway as they are participating in the EU ETS; and Switzerland which has an ETS that is linked with the EU ETS 1).
The transitional, data-collection phase of CBAM started in October 2023, with only reporting obligations but no charges due.
The phase-out of free allocation to sectors covered by the CBAM will take place by applying a ‘CBAM factor’, which will decrease gradually from 97.5% in 2026, to 51.5% in 2030 and down to 14% in 2033.
The CBAM will also apply to electricity imports.
New Entrants’ Reserve (NER): The initial volume of the NER at the start of Phase 4 amounted to 331.3 million allowances. This included unallocated allowances from Phase 3 and 200 million allowances from the MSR.
Aviation: Phase 3 breakdown applied until 2023. Free allocation to aviation will be phased out gradually – reduced to 75% in 2024, 50% in 2025 and to 0% from 2026 onward
* Revised benchmark values for free allocation of emission allowances for 2021 to 2025.
EUR 265.7 billion* (USD 297.1 billion) since the beginning of the system
EUR 43.2 billion** (USD 48.9 billion) in 2024
* Includes revenues from Iceland, Liechtenstein, Norway, and the UK (until 2020), as well as of the Innovation and Modernisation Funds funded by the EU ETS.
** Includes revenues from Iceland, Liechtenstein, Norway, and Northern Ireland, as well as of the Innovation and Modernisation Funds funded by the EU ETS.
Revenue from the auctioning of allowances under the EU ETS 1 accrues primarily to national budgets. As of June 2023, countries are required to use all ETS revenue (or an equivalent financial value) to support climate action and energy transformation.
EU Member States can also use their EU ETS 1 revenue as aid to certain electricity-intensive industries, to compensate for the additional electricity costs they face as a result of the carbon price pass through. They do so under State aid schemes that are approved by the European Commission. Every year, countries must publish the total compensation amounts paid out, including a breakdown by recipient sector and subsector. The overall spending under a scheme should not exceed 25% of collected EU ETS 1 revenue.
EU Member States report annually to the European Commission on how they used their auction revenue in a preceding year. Of the EUR 16.4 billion spent in 2024, Member States reported having supported projects in energy supply, grids and storage (20%), public transport and mobility (22%), social support and just transition (9%), energy efficiency, cooling and heating in buildings (20%), industry decarbonisation (5%), and road transport (3%) as well as other things (17%), that included international purposes and climate finance supporting climate action in vulnerable third countries.
A share of EU ETS 1 allowances is auctioned to supply the Innovation and Modernisation Funds, which were established to support decarbonization and modernization investments in ETS sectors.
Innovation Fund: One of the world’s largest funding programmes for rolling out low- and zero-carbon innovative solutions and technologies in energy, industry and net-zero mobility, funded entirely by the EU ETS 1. The fund provides grants for projects aimed at commercialising innovative low-carbon technologies and bringing industrial solutions to market to decarbonize Europe and support the transition to climate neutrality. It has an estimated budget of EUR 40 billion (USD 45.2 billion) until 2030 (dependent on the carbon price).
Modernisation Fund: A solidarity programme financed by the EU ETS 1. The fund supports lower-income Member States in financing projects that modernize energy systems, improve energy efficiency and help advance a socially just transition to climate neutrality. It has an estimated budget of EUR 56 billion (USD 63.3 billion) from 2021 to 2030 (allocated among the beneficiary Member States according to a fixed key).
Flexibility & Linking
Banking is allowed (since 2008).
Borrowing is not allowed.
PHASE 1: The use of CDM and Joint Implementation (JI) credits was allowed without limitation. In practice, no offset credits were used in Phase 1.
PHASE 2: The use of offset credits was allowed. 1,058 MtCO2e of international credits were used.
Qualitative limits: Most categories of CDM/JI credits were allowed, except for LULUCF and nuclear power. Strict requirements applied for large hydropower projects exceeding 20 MW.
Quantitative limits: In Phase 2, operators were allowed to use JI and CDM credits up to a certain percentage limit determined in the respective country’s National Allocation Plan. Unused entitlements were transferred to Phase 3.
PHASE 3: The use of offset credits was allowed with strict limitations.
Qualitative limits: Newly generated international credits (post-2012) had to originate from projects in least developed countries. Credits from CDM and JI projects from other countries were eligible only if registered and implemented before the end of 2012. Projects from industrial gas credits (projects involving the destruction of HFC-23 and N2O) were excluded regardless of the host country. Credits issued for emission reductions that occurred in the first commitment period of the Kyoto Protocol (2008 to 2012) were no longer accepted after March 2015.
Quantitative limits: The total use of credits for Phase 2 and Phase 3 was capped at 50% of the overall reduction under the EU ETS in that period (~1.6 GtCO2e).
PHASE 4:
The use of offset credits is not allowed.
The EU ETS 1 and the Swiss ETS have been linked since 2020. A direct link was created between the registries of both systems. It allows regulated entities to transfer allowances from an account in one system to an account in the other system. Allowances that can be used for compliance purposes in one system are recognised for compliance purposes of the other system.
In May 2025, the EU and the UK announced their intention to link their respective ETSs. Subsequently, the EU Council granted the Commission a negotiating mandate, authorising it to start formal discussions with the UK on a linking agreement.
Fuel ETS (national): in Austria and Germany, to be replaced by the EU ETS 2 [see ‘EU ETS 2 factsheet’]).
Carbon tax (national): in Denmark, Estonia, Finland, France, Hungary, Latvia, Netherlands, Norway, Poland, Slovenia, Spain, and Sweden.
Compliance
One calendar year.
FRAMEWORK: A harmonized framework of MRV and accreditation requirements underpins the EU ETS 1 functioning. Every year, Member States report on implementation of this framework:
- “Monitoring and Reporting Regulation (2018/2066)”
- “Accreditation and Verification Regulation (2018/2067)”
- “Monitoring and Reporting Regulation for maritime transport (2015/757)”
MONITORING: Each installation, aircraft operator and shipping company is required to have an emission monitoring plan, approved by a national competent authority.
REPORTING: Emission reports are submitted annually by the end of March for the preceding calendar year using templates.
Installations for the incineration of municipal waste (above a threshold of 20 MW rated thermal output) must monitor and report their emissions under the EU ETS 1 since January 1, 2024, with no surrender obligation.
VERIFICATION: Emission reports are verified by independent accredited verifiers before the end of March of the following year. Once verified, operators must surrender the equivalent number of allowances by the end of September. Verifiers must be accredited by national accreditation bodies of Member States in accordance with the Accreditation and Verification Regulation (EU) 2018/2067, which is based on the ISO/IEC 17029 and ISO 14065 international standards for GHG validation and verification bodies.
In addition, a dedicated MRV framework for non-CO2 aviation effects has started to apply from January 2025.
Regulated entities must pay an excess emissions penalty of EUR 100 (USD 113), adjusted for inflation with 2013 as the base year, for each tCO2e emitted for which no allowance has been surrendered, in addition to buying and surrendering the equivalent number of allowances. The name of the non-compliant operator is also made public. Member States may enforce different penalties for other forms of non-compliance.
Market Regulation
MARKET PARTICIPATION: Compliance entities and non-compliance entities.
MARKET TYPES:
Primary: Uniform price auctions with single rounds and sealed bids, conducted daily by EEX. Germany has opted out of the common auctioning platform, instead running national auctions through the EEX. Poland has also opted out but continues to participate on the common auction platform at the EEX until further notice.
Secondary: Spot, futures, options, and forward contracts are traded on the secondary markets, both on exchange and over the counter. Besides the EEX, futures are traded on ICE, ENDEX, and Nasdaq.
LEGAL STATUS OF ALLOWANCES:
Classified as financial instruments. The associated derivatives can hence be traded on secondary markets.
MARKET STABILITY RESERVE (MSR)
Instrument type: Quantity-based instrument
Functioning: The MSR was created in 2015 as a long-term measure to address a growing surplus of allowances in the EU ETS 1. It adjusts auction volumes according to pre-defined thresholds of the total number of allowances in circulation (TNAC), fostering balance in the EU carbon market and resilience to demand shocks. The MSR started operating in 2019.
Triggers: The Commission publishes the TNAC communication every year.
- If the TNAC is above 1,096 million, 24% of its volume is withdrawn from future auctions and placed into the MSR over a period of 12 months.
- If the TNAC is between 833 million and 1,096 million, to mitigate threshold effects, a smaller share of allowances is deducted from auction volumes and placed in the MSR.
- If the TNAC is less than 400 million, 100 million allowances are released from the MSR and auctioned.
Invalidation: From 2023, allowances in the MSR above a certain threshold are invalidated annually. In 2023, the applicable threshold was the 2022 auction volume. From 2024 onward, the applicable threshold is fixed at 400 million allowances.
Other Information
European Commission: Responsible for establishing the regulatory framework of the EU ETS 1 and centralized administration of the system, e.g., the EU registry.
Competent authorities of all EU Member States as well as Iceland, Liechtenstein, and Norway: implementation, e.g., verifying compliance with MRV and surrender obligations.
The European Commission publishes annual reports on the functioning of the European carbon market.*
The ETS Directive stipulates that the system is kept under review in light of the implementation of the Paris Agreement and the development of carbon markets in other major economies. Three major EU ETS 1 reviews — before Phase 3, before Phase 4, and in the context of increasing the EU 2030 climate target — have been conducted to date.
By the end of July 2026, the European Commission will assess:
- how negative emissions (removals) could be accounted for and covered under the EU ETS 1;
- the feasibility of lowering the 20 MW total rated thermal input thresholds for the activities covered under the EU ETS 1;
- effective accounting and avoidance of double counting of CCU products under the EU ETS 1;
- the feasibility of including municipal waste incineration under the EU ETS 1; and
- the functioning of the EU ETS 1 for aviation, including the functioning of CORSIA.
* The latest report was published in 2025, on the EU ETS functioning in 2024.
All other legislation and documentation can be found here.
Korea Emissions Trading System (K-ETS)
General Information
The Korea Emissions Trading System (K-ETS) launched in 2015 as East Asia’s first nationwide, mandatory ETS. It covered 77.75% of Korea's GHG emissions in 2023. The K-ETS aims to help the country in its objective to become carbon neutral by 2050, a target embedded in the 2021 “Carbon Neutral Framework Act”.
The K-ETS covers 813 of the country’s largest emitters in the power, industrial, buildings, waste, transport, domestic aviation, and maritime sectors (2025 compliance year). Covered entities must surrender allowances for all their covered emissions, and allocation is done via free distribution or auctions. By 2030, 50% of allowances in the power generation sector must be auctioned, with a gradual phase-in (2026: 15%, 2027: 20%, 2028: 30%, 2029: 40%, 2030: 50%). For the other sectors, 15% of allowances must be auctioned by 2030. Free allocation is provided for emissions-intensive, trade-exposed (EITE) sectors based on carbon intensity and trade intensity benchmarks. Since 2021, domestic financial intermediaries and other third parties have been able to participate in the exchange.
The K-ETS was established by the “Framework Act on Low Carbon, Green Growth” (2010). It was preceded by a mandatory Target Management System (TMS), launched in 2012, following a two-year pilot phase. The TMS facilitated the collection of verified emissions data and training in the MRV process and still applies to smaller entities not covered by the K-ETS.
In November 2025, Korea approved the National Emission Allowance Allocation Plan for the fourth phase of the K-ETS, covering 2026 to 2030. It sets the total GHG emissions cap, introduces a quantity-based Market Stability Reserve (K-MSR), and increases the share of auctioned allowances.
The total cap for the period is set at 2.5 billion tCO2e. A new linear reduction factor will apply, differentiating between the power generation and the non-power generation sectors, marking a shift from the previous proportional roadmap method. Sectoral reduction targets are also included in the allocation plan. The electricity, transport, buildings and waste sectors are all set to reduce emissions by more than 50% by 2035 relative to 2018 levels, with the electricity sector targeting a 69% to 75% cut. The other sectors have a lower reduction target.
Allocation rules are streamlined into two broad categories: power generation and non-power generation sectors. The auctioning share for the power generation sector will be gradually increased to 50% by 2030. Sectors at risk of carbon leakage, such as steel, non-ferrous metals, petrochemicals, cement, and semiconductors, will continue to receive 100% free allocation. These sectors account for around 95% of industrial emissions. Other non-power sectors will face a 15% auction rate. Benchmark-based allocation will be expanded to include semiconductors, displays and non-ferrous metals, and to cover fuel use across all industries. The benchmarking coefficient will gradually be tightened, moving from the weighted average of the top 37% of performers to the top 20%.
In aggregate, approximately 2.1 billion allowances will be allocated for free and 260 million auctioned during the fourth phase. A further 85 million allowances will be placed in the K-MSR, and around 89 million in the new entrants’ reserve. Excluding the K-MSR and new entrants’ reserve, roughly 11% of total allowances will be auctioned. Additional revenues from increased auctioning are earmarked to support business decarbonization.
The quantity-based K-MSR forms part of the overall cap and will be further defined in the first half of 2026 following public consultation.
Emissions & Targets
707.2 MtCO2e (2023)
By 2030: 40% reduction below 2018 levels (NDC 2.0)
By 2035: 53%-61% reduction compared to 2018 levels (NDC 2035)
By 2050: Carbon neutrality (Carbon Neutral Framework Act)
Updated prices available here
Size & Phases
PHASE 1: Three years (2015 to 2017)
PHASE 2: Three years (2018 to 2020)
PHASE 3: Five years (2021 to 2025)
PHASE 4: Five years (2026 to 2030)
An absolute cap limits the total emissions allowed in the system and is fixed ex-ante.
PHASE 1: The cap was 1,689.2 MtCO2e, including a reserve of 89.4 MtCO2e for early action and new entrants. 84.5% of the reserve was used within the phase. 14.3 million allowances were set aside in a reserve for market stabilization (see ‘Market Stability Provisions’ section), bringing the total number of allowances in Phase 1 to 1,704.2 million.
Annual Caps in Phase 1:
2015: 540.1 MtCO2e
2016: 560.7 MtCO2e
2017: 585.5 MtCO2e
PHASE 2: The cap was 1,777 MtCO2e, including 134 million for new entrants and other purposes. 14 million allowances were set aside for market stabilization and 5 million for the market makers (see ‘Market Design’ section) bringing the total amount of allowances to 1,796.1 million in Phase 2.
Annual Caps in Phase 2:
2018: 593.5 MtCO2e
2019: 563.2 MtCO2e
2020: 562.5 MtCO2e
The higher caps in Phase 2 reflected the expansion of the sectoral scope of the K-ETS (see ‘Sectors and Thresholds’ section).
PHASE 3: The cap was 3,010.3 MtCO2e. This corresponds to an average annual cap of 602 MtCO2e, including reserves. Annual caps appear higher in Phase 3 due to the expansion in scope but reflect a 4.7% decrease in emissions compared to the 2017 to 2019 baseline. In addition, 14 million allowances were set aside for market stability purposes and 20 million for market makers, bringing the total amount of allowances in Phase 3 to 3,044.3 million.
Annual Caps in Phase 3 (excluding reserves):
2021: 584.5 MtCO2e
2022: 584.5 MtCO2e
2023: 584.5 MtCO2e
2024: 562.5 MtCO2e
2025: 562.5 MtCO2e
PHASE 4: The cap is 2,537.3 MtCO2e (including reserves).
PHASE 1: 23 sub-sectors from the following five sectors: heat and power, industry, buildings, waste, and transportation (domestic aviation).
PHASE 2: According to the Phase 2 Allocation Plan, the public and waste sectors were disaggregated such that the K-ETS covered the following six sectors: heat and power, industry, buildings, transportation, waste, and the public sector. These were divided into 62 sub-sectors.
PHASE 3: Coverage within the transport sector was widened to include freight, rail, passenger, and maritime shipping. Construction industries have also been brought into the system’s scope. This increased the number of sub-sectors to 69.
PHASE 4: The fourth allocation plan only differentiates the power generation sector and the non-power sector instead of the previous six sectors. The number of sub-sectors was increased from 69 to 73.
INCLUSION THRESHOLDS: Companies with total annual covered emissions of 125,000 tCO2e and if a company has at least one facility with over 25,000 tCO2e.
Covered emissions include direct but also indirect emissions from externally supplied electricity and heat. The same inclusion thresholds apply.
Point source (power, industry, buildings, transport, domestic aviation, waste, public/other); downstream (buildings)
813 entities (2025)
Allowance Allocation & Revenue
Volume of 2024 cap offered for auction: 18.75 million vintage 2024 Korean Allowance Units (KAUs) between July 2024 and June 2025
Proportion of 2025 cap offered for auction: 3.33%
PHASE 1:
Free Allocation: 100% of total allowance supply. Most sectors received free allowances based on the average GHG emissions of the base years (2011 to 2013). Three sub-sectors (grey clinker, oil refining, and aviation) were allocated free allowances following benchmarks based on previous activity data from the base years.
PHASE 2:
Free Allocation: 97% of allocation to entities in sub-sectors subject to auctioning; 100% for EITE sectors. Toward the end of Phase 2, the share of sector-specific benchmarking reached 50% of total primary allocation and was expanded to a total of seven sub-sectors: grey clinker, oil refining, domestic aviation, with the addition of waste, industrial parks, electricity generation, and district heating/cooling.
EITE sectors received 100% of their allowances for free if they met one of the following three criteria:
• Additional production cost of >5% and trade intensity of >10%; or
• Additional production cost of >30%; or
• Trade intensity of >30%.
Auctioning: Regular auctions began in 2019. Participation in auctions was subject to some limitations. Only companies that did not receive all their allowances for free were eligible to bid, with a list of eligible bidders published by the Ministry of Environment. Bidders could purchase 15-30% of the allowances on offer. The auctions were subject to a minimum price.
• Auction share: 3% of allocation to entities in 26 eligible sub-sectors, including entities from the electricity, domestic aviation, wooden products, and metal foundry sectors.
• Auction volume: 7.95 million allowances (2019) and 9.3 million (2020)
PHASE 3:
Free Allocation: Less than 90% of free allocation to entities in sub-sectors that were subject to auctioning; 100% for EITE sectors. The share of sector-specific benchmarking was to reach 60% and expanded to a total of 12 sub-sectors: grey clinker, oil refining, domestic aviation, waste, industrial parks, electricity generation, and district heating/cooling, with the addition of steel, petrochemicals, buildings, paper, and wood processing. EITE sectors received 100% free allocation if they met the following criteria:
Production cost x Trade intensity ≥ 0.2%
Allocation was calculated using the following formulas:
• Benchmark allocation: Benchmark value (tCO2e/t) x historical activity level (t) x correction factor x carbon leakage factor
• Grandparenting allocation: Average GHG emissions of base year x correction factor x carbon leakage factor
The carbon leakage factor was 1.0 for sectors exposed to significant risk; for non-EITE sectors, it was 0.9.
Auctioning: Bidders could purchase a maximum of 15% of the allowances on offer.
Auction share: At least 10% of allocation to entities in sub-sectors was subject to auctioning. Entities from 41 sub-sectors, excluding EITE sectors, could participate in auctions.
Auction supply: 23.5 million allowances (KAU2021), 18.2 million allowances (KAU2022), and 16.2 million allowances (KAU2023) which represented ~3% of the 589.3 MtCO2e 2023 cap (excluding reserves).
PHASE 4:
Free Allocation: Sectors at risk of carbon leakage receive 100% free allocation. The share of sector-specific benchmarking is to reach 77% and has been expanded to a total of 15 sub-sectors: grey clinker, oil refining, domestic aviation, waste, industrial parks, electricity generation, district heating/cooling, steel, petrochemicals, buildings, paper and wood processing, with the addition of semiconductors, displays, and non-ferrous metals as well as fuel use by all industries. EITE sectors receive 100% free allocation if they meet the following criteria:
Carbon intensity x trade intensity ≥ 0.1%
Allocation is calculated using:
• Benchmark allocation
• Grandparenting allocation
Auctioning: The auctioning share for the power generation sector will be gradually raised to 50% by 2030. Other non-power sectors will face a 15% auction rate.
Auction supply: 260 million allowances for the entire Phase 4
KAU2026: 17 million allowances
Auctioning represents ~11% of the 2,360 MtCO2e Phase 4 cap (excluding reserves).
KRW 1.55 trillion (USD 1.25 billion) since the beginning of the program
KRW 189.2 billion (USD 133 million) in 2025
- Climate mitigation
- Low-carbon innovation
- Assistance for individuals, households, and businesses
Revenues from auctioning go into the Climate Response Fund, financing NDC-aligned emissions reduction investments, low-carbon technology deployment and commercialization, support for the transition of carbon-intensive sectors and affected stakeholders, and the operation and strengthening of ETS-related infrastructure.
Climate Response Fund Expenditures
| Revenue Use Purpose | 2022 | 2023 | 2024 |
| GHG reduction | USD 697 million | USD 724.1 million | USD 718million |
| Creating low-carbon ecosystem | USD 472.3 million | USD 467.1 million | USD 445 million |
| Just transition | USD 134.8 million | USD 149.6 million | USD 144.8 million |
| Building carbon neutral foundation | USD 423.4 million | USD 460.6 million | USD 350.9 million |
| Other | USD 77.4 million | USD 23.7 million | USD 96.6 million |
| Total | USD 1,804.9 million | USD 1,824.9 million | USD 1,755.3 million |
Flexibility & Linking
Banking is allowed with restrictions across and within phases.
Borrowing is allowed within a single trading phase.
PHASE 1: Borrowing was limited to 20% of an entity’s obligation.
PHASE 2: From Phase 2 to Phase 3, banking was initially limited to the higher of two limits: the net annual number of allowances sold by the entity in Phase 2; or company- and facility-specific limits of 250,000 KAUs and 5,000 KAUs, respectively. Borrowing was limited to 15% of an entity’s obligation in 2018.
Rules on banking and borrowing were adjusted in 2019. The borrowing limit was set by each entity’s past borrowing activity, according to the following formula: Compliance obligation of the entity x [Borrowing limit of previous year – (“borrowing ratio” in previous year x 50%)]/entity’s emission volume.
The banking limit for the transition between Phase 2 and Phase 3 was calculated as follows:
• For 2018 vintage allowances, entities could bank either three times the net sales (total allowances sold minus total allowances bought) or 75,000 allowances for companies emitting >125,000 tCO2e or 15,000 allowances for companies emitting >25,000 tCO2e — whichever was higher;
• For KAU19s, the amounts above were reduced by one-third, i.e., two times the net selling amount or 50,000 for large entities (10,000 for smaller entities) allowances, whichever was higher;
• For KAU20s, the amount represented a two-third reduction compared to the KAU18 rule.
PHASE 3: In the first trading year, entities could borrow up to 15% of their compliance obligation. From the second to fourth trading years, the same borrowing formula as for 2019 applied.
Banking in Phase 3:
• In the first and second compliance years (2021 and 2022), entities could bank up to double their net number of KAUs and Korean Credit Units (KCUs) sold on the secondary market (excluding swaps and auctions).
• In the third and fourth compliance years (2023 and 2024), entities’ banking limits were equal to their net number of allowances (total allowances sold minus total allowances bought) and offset credits sold.
Phase 3 allowances and offset credits could only be carried over to the first compliance year of Phase 4 (2026 to 2030). The banking limit in the fifth compliance year (2025) had been expanded to “five times of net sales”.
PHASE 4: In the first trading year, entities can borrow up to 30% of their compliance obligation. From the second to fourth trading years, the same borrowing formula as for 2019 applies.
Banking: Gradual easing of carry-over restrictions:
2026: Companies with a surplus can bank allowances equivalent to six times their net sales
2027: Seven times their net sales
2028: Eight times their net sales
2029: Nine times their net sales
2030: Ten times their net sales
The net sales condition is not applied to short companies.
Domestic offset credits, i.e., Korean Offset Credits (KOCs), were allowed in Phase 1. KOCs and international credits (subject to qualitative criteria) have been allowed since Phase 2. Both domestic and international credits must be converted to KCUs to be used for compliance.
PHASE 1:
Qualitative limit: The use only of domestic offset credits from external reduction activities implemented by non-ETS entities — and that met international standards — was allowed. Domestic CDM credits (CERs) and KOCs were allowed. Eligible activities included those permitted under the CDM plus carbon capture and storage, and had to have been implemented after mid-April 2010.
Quantitative limit: Up to 10% of each entity’s compliance obligation.
PHASE 2:
Qualitative limit: The use of CERs generated from June 2016 from international CDM projects developed by Korean companies was allowed if:
• at least 20% of the ownership rights, operating rights, or the voting stocks were owned by a Korean company; or
• a Korean company supplied low-carbon technology worth at least 20% of the total project cost.
Quantitative limit: Up to 10% of each entity’s compliance obligation (of which up to 5% could be international offset credits).
PHASE 3:
Qualitative limit: The use of offset credits was allowed according to the same qualitative criteria outlined for Phase 2. However, limitations applied to the issuance and conversion of credits:
• GHG reduction projects (according to reduction period coverage) to KOC conversion: 1) April 2010 to December 2020: within two years (2021 to 2022); 2) January 2021 onwards: within two years (2022 to 2023).
• KOC to KCU conversion: within five years of KOC issuance.
Quantitative limit: Up to 5% of each entity’s compliance obligation, regardless of type.
As of December 2024, there were 317 registered methodologies (211 for CDM and 106 for domestic offset credits). The government aims to use 37.5 million international credits to fulfill its 2030 NDC.
For the 2022 compliance period, 7.6 million KOCs, 7 million of which were from domestic projects and the remainder from overseas projects, were converted into KCU22s, all of which were used for surrender of emission permits (65 entities).
In the 2023 compliance period, 7.6 million KOCs (1.6 million from domestic projects and 6 million from overseas) were converted into KCU23s. Only 732,872 were submitted for compliance.
In the 2024 compliance period, 1.9 million KOCs (1.7 million from domestic projects and 0.2 million from overseas) were converted into KCU24s. Only 71,491 were submitted for compliance.
Allocation was largely sufficient to cover compliance obligations, which can explain the drop in offset use.
PHASE 4:
Qualitative limit: The use of offset credits is allowed. Domestic credits can be supplied by entities that are not subject to legal obligations under the K-ETS and that began after December 2016, the domestic entry into force of the Paris Agreement. International ex post credits that comply with international rules of Article 6 of the Paris Agreement are accepted. Additionally, credits from old projects that started after 2010 are accepted.
Quantitative limit: Up to 5% of each entity’s compliance obligation, regardless of type.
The K-ETS is not linked with any other system.
Compliance
One year. Entities must surrender allowances for the previous year by the end of August.
FRAMEWORK:
The legal basis is contained in the “Act on the Allocation and Trading of Greenhouse Gas Emission Allowances” and the “Enforcement Decree of the ETS Act”. Administrative rules on the MRV system are contained in the “Guidelines on Reporting and Certification of Emissions under the Greenhouse Gas Emissions Trading System”.
MONITORING: Monitoring may be conducted either periodically or continuously using approved measurement devices, in accordance with an entity’s monitoring plan, while emissions reporting and third-party verification are carried out on an annual basis. The monitoring plan must define core elements, including company information and organizational boundaries, facility-level monitoring methodologies, activity data measurement points, tier selection, QA/QC procedures, and plans for developing emission factors. MRV requirements also extend beyond the ETS to non-ETS entities designated under the TMS, under which companies with annual emissions below 50,000 tCO2e (or below 15,000 tCO2e at the worksite level) are required to submit a verified emissions statement.
REPORTING: Annual reporting of emissions from the previous year must be submitted by the end of March. Liable entities are required to revise and resubmit emission reports which are found to be incorrect.
VERIFICATION: Emissions must be verified by a third-party verifier. Emission reports are reviewed and certified by the Certification Committee of the Ministry of Environment by the end of May.
The penalty shall not exceed either three times the average market price of allowances of the given compliance year.
Market Regulation
MARKET PARTICIPATION: Compliance entities. Limited participation for non-compliance entities. Initially limited to compliance entities, the “market maker” system was introduced in Phase 2 to improve market liquidity. Market makers are third-party participants in the K-ETS who can draw on a separate government-held reserve of allowances set aside at the time of original allocation, to increase liquidity in the market through daily allowance trade. Three new financial firms were appointed in 2021, in addition to the two market makers that had been appointed in 2019. In December 2022, the government announced a further two market makers who began operating from 2023. Eight market makers were appointed later in 2023. In 2025, a total of nine market makers were admitted to the K-ETS market.
From Phase 3, as per the 2012 “Emissions Trading Act” and the Presidential Decree, non-compliance entities in the form of other non-market maker domestic financial intermediaries can participate in the secondary market and trade allowances on the Korea Exchange (KRX). In line with this, 20 financial intermediaries were approved for participation in the carbon market from 2021 (the total as of December 2025 was 21 financial intermediaries). Though they initially could only hold up to 200,000 allowances each, to avoid excessive market shares, this number was increased to 500,000 in December 2022, and to 1 million in 2023.
MARKET TYPES:
Primary: Monthly auctions have been held since 2019. Auctions are open to all companies with compliance obligations under the K-ETS. Auctions take place via the KRX.
Secondary: The K-ETS has traditionally had a high share of over-the-counter transactions. Additionally, the KRX manages the platform where secondary spot market transactions take place. Allowances, KCUs, and KOCs are traded on the exchange for different vintage years. Consignment trading was launched in November 2025.
LEGAL STATUS OF ALLOWANCES: The legal status of KAUs is not explicitly referenced in the 2012 Emissions Trading Act or the Presidential Decree. However, KAUs are not regulated under financial market law. For the purpose of preventing market price manipulation, unfair trade and to regulate exchange of information, Article 22, paragraph 3 of the Act specifies that certain provisions of the “Capital Market and Financial Investment Business Act” apply.
KOREAN MARKET STABILITY RESERVE (K-MSR)
Instrument type: Quantity-based and price-based instrument
Functioning of the quantity-based mechanism: The fourth allocation plan announced the establishment of a quantity-based K-MSR, which is to be detailed in the first half of 2026, after public consultation. 85 million allowances will be placed in the K-MSR for Phase 4.
Functioning of the price-based mechanism: An Allocation Committee is in place to implement market stabilization measures if:
• the market allowance price of six consecutive months is at least three times higher than the average price of the two previous years;
• the market allowance price of the last month is at least double the average price of the two previous years and the average trading volume of the last month is at least twice the volume of the same month of the two previous years;
• the average market allowance price of a given month is lower than 60% of the average price of the two previous years; or
• it is difficult to trade allowances due to an imbalance of supply or demand.
Stabilization measures include:
• additional auctioning of up to 25% of allowances from the market stabilization reserve, which contains 14.3 million allowances;
• the establishment of a limit to the number of allowances entities can hold: minimum (70%) or maximum (150%) of the allowances of the compliance year;
• an increase or decrease of the borrowing limit;
• an increase or decrease of the offset limit; and
• the temporary establishment of a price ceiling or price floor.
In 2018, the Allocation Committee put up for auction an additional 5.5 million allowances from the stability reserve to ease the market in the lead-up to the 2017 compliance deadline; 4.7 million of these were sold. No more such sales have occurred since.
In 2021, the Allocation Committee set a price floor of KRW 12,900 (USD 9.47) per tonne in April and KRW 9,450 (USD 6.93) per tonne in June.
In 2023, the government set two temporary price floors. The measure’s trigger price remained at an average of KRW 12,088 (USD 8.87), calculated as 60% of the average price from the preceding two years. The first price floor of KRW 7,020 (USD 5.15) was established in July and the last price floor of KRW 7,750 (USD 5.69) was set in November and lifted in early December (when prices were maintained at KRW 8,520 (UDS 6.25) for five consecutive days).
Other Information
Ministry of Climate, Energy and Environment: Holds overall responsibility for the K-ETS.
Ministry of Economy and Finance: Established the Allocation Committee; briefly held overall responsibility for the K-ETS between June 2016 and January 2018.
Korea Exchange (KRX): Trading and auctioning platform.
Greenhouse Gas Inventory and Research Center (GIR): Responsible for the registry and technical implementation.
International Carbon Reduction Council: Ministry-level body that promotes GHG reduction projects.
The GIR regularly releases evaluation reports with emissions statistics, market indicators, and survey results from covered entities.
The 2024 report states that verified emissions from 735 entities receiving allocated allowances totaled 549.9 MtCO2e in 2023 – 3.9% lower than the previous year (572.0 Mt, 713 entities). All covered entities met their surrender obligations. While certified emissions exceeded allocations in buildings, waste, and public services sectors, all sectors met targets through trading, banking, and offset mechanisms.
Power sector (60 entities): 212.0 Mt, down 18.2 Mt (7.9%) due to lower electricity demand, increased carbon-free generation, and reduced coal/LNG-based generation.
Industry sector (476 entities): 311.3 Mt, down 4.4 Mt (1.4%), driven by global economic slowdown, sluggish construction, and expanded GHG reduction facilities for semiconductor processing.
Buildings sector (40 entities): 4.9 Mt, down 0.05 Mt (0.9%), attributed to reduced city gas consumption from higher temperatures and increased gas prices.
Transport sector (67 entities): 6.7 Mt, down 0.03 Mt (0.5%), reflecting reduced travel distances in railway and aviation, plus increased zero-emission vehicle supply.
Act on the Allocation and Trading of Greenhouse Gas Emissions Allowances
Enforcement Decree of the Act on the Allocation and Trading of Greenhouse Gas Emissions Allowances
First Basic Plan for the ETS (2015 to 2024)
Second Basic Plan for the ETS (2017 to 2026)
Third Basic Plan of the ETS (2021 to 2030)