July 23, 2026

Q&A: The EU ETS: Driving decarbonisation, while keeping Europe competitive

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The EU Emissions Trading System (ETS) is a key tool for driving Europe’s industrial decarbonisation while supporting the transition towards a climate-neutral economy. By putting a price on carbon, the ETS creates incentives for companies to invest in cleaner technologies and more efficient production processes. However, its success depends on ensuring a predictable, technology-neutral framework that supports industrial competitiveness and enables investment. Understanding the ETS is essential to recognising the role of Europe’s technology industries in delivering the solutions needed for the transition.

To explore the key questions, challenges and opportunities in more detail, download the Q&A document.

Author

  
Daniel Wennick
Policy Director

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