The European Union Emissions Trading System (EU ETS) is a cap-and-trade framework that limits greenhouse-gas emissions from covered sectors. Regulators set an emissions cap and issue allowances; companies must surrender allowances for their emissions and may trade them. The cap and trading mechanism create a price signal intended to encourage emissions reductions.
For cybersecurity, the system’s monitoring, reporting, and trading processes depend on trustworthy data and reliable digital services. Compromised accounts, altered emissions records, or disruption to compliance systems could undermine reporting or operations. Organizations subject to the EU ETS should protect access to relevant systems, preserve audit trails, and verify emissions data and transactions. Cybersecurity supports the integrity of compliance; it does not determine the carbon cap or allowance price.