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How does the European carbon market work?

September 2015

The issue of greenhouse gas emissions trading systems is central to COP21. The objective of a carbon market is to help incentivize economic players to reduce their CO2e emissions*.

IFP Energies nouvelles, CDC Climat Research and the ADEME (French Environment and Energy Management Agency) present the keys to understanding one of the economic tools for combating climate change: the European carbon Emissions Trading Scheme.

Watch the video: How does the carbon emissions trading system work in Europe?

* The standard measure on the EU market is CO2. Emissions of other greenhouse gases - nitrous oxide and perfluorocarbons - are expressed in CO2 equivalent (CO2e) depending on the basis of their global warming potentials.


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