Why did the Telegraph magazine call carbon the best performing commodity in the world? Because of the European emissions trading system, ETS. The system has tripled its allowance price within a year, which is quite exceptional in any market. So what is EU ETS and why is it so crucial in solving climate change?
EU ETS harnesses the power of market forces to reduce greenhouse gas emissions. In practice European commission sets a cap = carbon maximum for EU and allocates emissions permits to companies. These permits can be used to cover business related emissions, banked for the future - or sold to others.
Join Merja Paavola and Kari Kankaanpää when they explain and discuss EU ETS together with our host Paulina Modlitba.