ETS

The Emissions Trading System, or ETS, is described as a market-based regulatory mechanism that links each unit of emissions to a tradeable right and seeks to keep greenhouse-gas emissions below a defined cap. For iron and steel plants, the mechanism turns carbon from an environmental indicator into a direct cost item. ETS belongs in an archive covering carbon regulation and the economics of steel production. In the source’s comparison, it operates within production, while CBAM operates at the border; together they make carbon a factor in process-level competition and financial sustainability.