EU ETS & How It Impacts Regional Energy Prices
In 2005, the European Union established the EU Emissions Trading System (ETS) as the world's first international emissions trading system. Its goal is to reduce the region's GHG emissions through the issuance and trade of European Union Allowances (EUAs).
Recently, the European Commission (EC) has implemented additional measures to accelerate the reduction of GHG emissions throughout Europe and achieve carbon neutrality by 2050.
These measures have significantly impacted EUA prices and indirectly European energy prices. NUS recently published a whitepaper analyzing the EU ETS scheme, its linkage to energy prices, and its future impact.
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