A New Emissions Trading System For Buildings And Road Transport Is Set To Be Introduced In The Eu

EU-ETS: Expansion to include buildings and road transport sectors

A new emissions trading system for buildings and road transport is set to be introduced in the EU

The system will be based on the cap-and-trade principle, and will aim to reduce greenhouse gas emissions from these sectors

The EU-ETS is a cornerstone of the EU's climate policy and its key tool to reduce greenhouse gas emissions cost-effectively. The system has been in operation since 2005 and covers around 40% of the EU's greenhouse gas emissions. The sectors currently covered by the EU-ETS include power generation, industry and aviation.

The expansion of the EU-ETS to include buildings and road transport is a significant step forward in the EU's efforts to reduce greenhouse gas emissions. These sectors are responsible for a significant share of the EU's emissions, and their inclusion in the EU-ETS will help to drive down emissions in these sectors. The EU-ETS will also help to create a level playing field for businesses in these sectors, as all businesses will be subject to the same carbon price.

The new emissions trading system for buildings and road transport will be based on the cap-and-trade principle. This means that a cap will be set on the total amount of greenhouse gases that can be emitted from these sectors, and businesses will be required to purchase allowances to cover their emissions. The allowances will be auctioned off by the EU, and the proceeds will be used to fund climate mitigation measures.

The expansion of the EU-ETS to include buildings and road transport is a positive step forward in the EU's efforts to reduce greenhouse gas emissions. This new system will help to drive down emissions in these sectors, and will create a level playing field for businesses.