Carbon pricing – putting a price on pollution – is one of the most effective tools to tackle climate change. It encourages cleaner choices, drives innovation, and generates revenues that are reinvested in people and communities to support the clean transition. However, it is often misunderstood.

The EU uses carbon markets to put a price on pollution through the EU Emissions Trading System (EU ETS), which covers the power sector, industry, shipping, and some emissions from aviation. In the future, the new ETS2 will cover emissions from road transport and buildings, starting in 2027, to ensure more parts of the economy contribute to the green transition.

Visit the link to check five key facts that show how carbon pricing works and why it benefits everyone.