VISUAL LEARNING

How the EU ETS Works

This graphic illustrates how carbon trading actually works under the EU Emissions Trading System. Company A’s emissions are below its free allocation of carbon allowances, creating a surplus. Company B’s emissions are above its free allocation, meaning it doesn’t have enough allowances to comply with the system and is facing fines for potential non-compliance. Company B has three options to meet its obligations: buy surplus allowances from Company A; buy allowances from government auctions; or reduce its emissions to avoid having to buy any allowances.

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Climate Policy Compliance Market

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This chart shows the total amount of man-made emissions created by the world's biggest polluters.

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The amount of atmospheric CO2 has charted a steady climb higher. The Mauna Loa Observatory on the north flank of volcano of the same name

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HIGHLIGHT

EU CBAM ‘real cost’ phase begins

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GLOSSARY

CCUS/CCS

Under CCS, carbon emissions are captured and permanently stored, for example in geological storage sites.

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ARTICLE

What is Carbon Capture, Utilisation & Storage?

Carbon Capture, Utilisation and Storage (CCUS) is a method of reducing carbon dioxide emissions by trapping the gas for industrial use or permanent storage, preventing its release into the atmosphere.

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