The Commission is in the process of updating some of the content on this website in light of the withdrawal of the United Kingdom from the European Union. If the site contains content that does not yet reflect the withdrawal of the United Kingdom, it is unintentional and will be addressed.

The integrity and implementation of the EU ETS

Share this Post:

This special report by the European Court of Auditors assesses whether an adequate framework for protecting the integrity of the European Union's Emissions Trading Scheme (EU ETS) as a market-based mechanism was established; it also assesses the progress of the actual implementation of the EU ETS during its phase II (2008–12), so that lessons can be learned for the future development of this policy tool.


Overall, the Court concludes that the management of the EU ETS was not in all respects adequate; however, there have been significant improvements to the framework for protecting the system's integrity. A number of issues should still be addressed to make the framework sufficiently robust, providing for better regulation and control, as well as encouraging investor confidence. 


The EU ETS is the EU’s flagship policy to combat climate change. This innovative scheme introduced in 2005 is now in its third phase of implementation. At European level, the environmental goal of the EU ETS is to reduce CO2 emissions, to put a price on carbon and to give a financial value to each tonne of CO2 equivalent (CO2 e) saved. As well as limiting total emissions with a sufficiently high carbon price, the EU ETS should encourage installations to apply the most cost-effective emission reduction measures, and promote investment in low‑carbon technologies.



To download the report, please visit the relevant European Court of Auditors website.