The EU ETS achieved an 11.4% decrease between 2019 and 2020, according to the European Environment Agency. This marks the most significant annual drop since its inception in 2005.

Companies that don’t follow EU ETS regulations will face financial penalties. Non-compliance with requirements can result in fines of €100 per missing allowance. This is equivalent to €100 per ton of carbon. Companies must also compensate for the shortfall in the subsequent year.

The new regulations apply to plane operators, as well as companies in the energy or manufacturing sectors operating in the EU, Iceland, Liechtenstein, Norway, and Northern Ireland (for electricity generation). Starting in 2024, the EU ETS expanded its scope to include emissions from maritime transport.

There are various strategies that companies can implement to reduce their emissions, such as optimizing transportation and supply chains. Companies can also invest in alternative energy sources and participate in carbon offsetting programs to compensate for their emissions.