MFT Policy Brief 4 (EN)

How does the European emissions trading system (EU-ETS) work and is it a good instrument to tackle the climate crisis?

It is the central instrument of European climate policy: the European emissions trading system (EU-ETS). Conservative and liberal parties in particular see it as the key to achieving European climate targets. But how exactly does emissions trading actually work? Does it reliably lead to emission reductions, or does it only look good in theory but achieve little or nothing in reality? We want to explain this to you in this MFT Policy Brief.

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