A regulatory term referring to the system for greenhouse gas emissions allowance trading within the Union in respect of activities listed in Annex I to.
EU ETS is the Union's greenhouse-gas allowance trading system, and CBAM is designed in part to mirror its carbon-cost logic for imported goods. Understanding CBAM therefore requires understanding its relationship to the internal EU carbon market.
Regulation (EU) 2023/956 establishing a carbon border adjustment mechanism
the system for greenhouse gas emissions allowance trading within the Union in respect of activities listed in Annex I to Directive 2003/87/EC other than aviation activities;
Reference: Article 3, point 5
This term matters when teams need to understand why CBAM certificate pricing moves with EU ETS allowance prices and how the border mechanism connects to the internal carbon market. It also matters when explaining CBAM commercially: it is not an isolated tariff, but an extension of a broader EU carbon-pricing architecture.
For Minespider, EU ETS is the reference market context behind CBAM economics. It provides the pricing environment that makes accurate embedded-emissions data financially consequential.