Tradable allowance

The European Union Emissions Trading System (EU ETS), also known as the European Union Emissions Trading Scheme, was the first large greenhouse gas emissions trading scheme in the world, and remains the biggest. It was launched in 2005 to fight Global warming and is a major pillar of EU climate policy. As of 2013, the EU ETS covers more than 11,000 factories, power stations, and other installations with a net heat excess of 20 MW in 31 countries—all 28 EU member states plus Iceland, Norway, and Liechtenstein. The installations regulated by the EU ETS are collectively responsible in 2008 for close to half of the EU's anthropogenic emissions of CO₂ and 40% of its total greenhouse gas emissions. The taxation of electricity producers (power stations) for the emissions of CO₂ has been controversial, as globally governments have refused to accept the additional burden while many have repealed such schemes, e.g., Canada in 2011 and Australia in 2014.