A CROSS-COUNTRY ANALYSIS OF EMISSION TRADING SYSTEMS WITHIN THE EUROPEAN UNION

Abstract

In the context of global anthropogenic environmental degradation, primarily caused by economic activities, the urgent need for international cooperation and coordination in the implementation of green economic policies becomes increasingly evident. Emission trading systems (ETS) represent a key component of the global strategy for reducing greenhouse gas emissions and promoting sustainable economic development. By analyzing relevant literature and examples of best practices from different EU countries, using desk research methods, this paper demonstrates that emission trading systems (ETS) are effective in mitigating environmental harm while enhancing economic relations among countries, thereby promoting a green economy and sustainable development at a global level. By examining the implementation of ETS across various EU member states, this paper illuminates the system's potential to significantly reduce environmental footprints, improve international collaboration, and drive economic development. It explores the diverse approaches to ETS integration within the EU, reflecting on the successes and challenges faced by different countries. This cross-country analysis provides valuable insights into the mechanisms through which ETS can serve as a catalyst for effective climate change mitigation, demonstrating the significant impact of aligning national policies with global sustainability goals.