Emissions trading system could save the planet, if stabilized
The European Union's emissions trading system (ETS) is a key tool for reducing greenhouse gas emissions. Despite some challenges, the ETS has expanded to cover more sectors and gases. To ensure its effectiveness, the ETS needs to regain credibility and stability. This can be achieved by auctioning guarantees on future emission prices, which will encourage investment in low-carbon technologies and help meet long-term decarbonisation goals.