Greenhouse Gas Emissions Trading Act (TEHG)

The TEHG sets out the legal foundation for a Union-wide emissions trading system aimed at cost-effectively reducing greenhouse gas emissions from covered installations, aviation, and maritime transport, in support of national and EU climate targets. It also establishes the basis for a separate, fuel-based Union-wide trading system (EU ETS 2), and implements international rules on recording, reducing, and compensating aviation emissions, EU requirements for monitoring maritime emissions, and the carbon border adjustment mechanism (CBAM) under the EU CBAM Regulation. Its scope covers three regulated domains: stationary installations, air transport, and maritime transport.