Report on the functioning of the European carbon market

Summary:

Annual report published by the European Commission on 17 December 2018, setting out the latest developments in the European carbon market.

Further information:

As stipulated by the Directive 2003/87/EC (EU ETS Directive), the objective of this report is to provide a snapshot of developments in the European carbon market on an annual basis. The report covers the year 2017, but also presents initiatives proposed or agreed in the first half of 2018. This report provides for the first time an overview of the actual amounts of state aid spent by Member States on indirect carbon cost compensation in 2017.

In 2017, the EU ETS Directive was further revised to accommodate the development of a global measure for reducing aviation emissions. The year was also marked by the signature of an agreement between the European Union and Switzerland on linking the Swiss greenhouse gas emissions trading system to the EU ETS. A revised EU ETS Directive entered into force on 8 April 2018.