The EU’s Revamped Carbon Pricing Policy

Europe has established itself as the global leader in fighting climate change and transforming this process into a driver of growth and competitiveness. The Green Deal,
the pillar of the EU’s climate and energy policy, rests squarely on the Emissions Trading Scheme (ETS), its main tool for reducing greenhouse gas emissions and putting a price on carbon. Until July 2021, it was the largest (it has just been overtaken by China’s own program) but is still the most developed carbon market in the world, and covers
about 40% of the bloc’s emissions. Since its launch in 2005, it has contributed to decrease about 30% of EU emissions.