Full definition
Launched in 2005, the world’s first carbon market. Covers around 40 % of EU emissions (electricity, industry, intra-EU aviation, maritime since 2024). Emissions from stationary installations have fallen by around 50 % compared with 2005. Operates through a declining cap: -62 % of allowances by 2030 versus 2005. The allowance (EUA) trades around €75-80/tCO2 in mid-2026. ETS2, the second market covering buildings, road transport and small industry, was postponed by one year by the December 2025 climate agreement: auctions from 2027, full obligations in January 2028, with a stability mechanism releasing allowances if the price exceeds around €45/t.
Key figures
- ~€76/tCO2EUA allowance price in June 2026 (EEX quotations)
- -50 %fall in emissions from ETS stationary installations since 2005 (EC carbon market report, December 2025)
- January 2028start of ETS2 application (buildings, road transport), postponed by one year by the December 2025 agreement
Questions and answers
Is my company affected by ETS or ETS2?
Current ETS covers energy-intensive industrial installations, electricity producers, intra-EU aviation and maritime transport. ETS2 will extend pricing to heating oil and gas for buildings and road fuels from January 2028, through energy suppliers: almost all companies will experience it indirectly through energy and transport costs.
What is the link between ETS and CBAM?
CBAM mirrors ETS at borders: it applies the European carbon price to imports (steel, cement, aluminium, fertilisers, hydrogen, electricity) to avoid carbon leakage while European industrial companies’ free allowances are gradually phased out by 2034.