Article 1 Subject matter

Article 1

This Directive establishes a ►M9  system ◄ for greenhouse gas emission allowance trading within the ►M9  Union ◄ (hereinafter referred to as the ‘ ►M9  EU ETS ◄ ’) in order to promote reductions of greenhouse gas emissions in a cost-effective and economically efficient manner.

▼M15

This Directive also provides for the reductions of greenhouse gas emissions to be increased so as to contribute to the levels of reductions that are considered scientifically necessary to avoid dangerous climate change. It contributes to the achievement of the Union’s climate-neutrality objective and its climate targets as laid down in Regulation (EU) 2021/1119 of the European Parliament and of the Council ( 1 ) and thereby to the objectives of the Paris Agreement ( 2 ).

▼M4

This Directive also lays down provisions for assessing and implementing a stricter ►M9  Union ◄ reduction commitment exceeding 20 %, to be applied upon the approval by the ►M9  Union ◄ of an international agreement on climate change leading to greenhouse gas emission reductions exceeding those required in Article 9, as reflected in the 30 % commitment endorsed by the European Council of March 2007.

▼B