Educational Videos
At FACS, we believe that understanding carbon markets and regulatory frameworks is essential for navigating the evolving landscape of emissions compliance and carbon trading. To support this, we have developed a series of educational videos designed to make complex concepts clear, accessible, and relevant to businesses and market participants. Our content covers the fundamentals of carbon markets, the European Union Emissions Trading System (EU ETS), carbon allowance trading, and key regulatory mechanisms. Through practical explanations and market-focused insights, these videos aim to provide viewers with the knowledge needed to better understand carbon pricing, compliance obligations, and the dynamics shaping European carbon markets.
Compliance carbon markets
Compliance carbon markets form the backbone of global climate policy, setting binding emissions limits for regulated sectors and enabling cost-effective carbon reduction through trading. In this introductory video, FACS explains how these markets evolved from the Kyoto Protocol to today’s EU ETS, outlines their key design features, and compares major systems worldwide. Whether you’re new to carbon trading or looking to deepen your understanding, this resource offers a clear overview of the mechanisms driving global decarbonization.
The EU Emissions Trading System
The EU Emissions Trading System (EU ETS) is the world’s first and largest carbon market, launched in 2005 to make pollution more expensive and emission reductions more valuable. It operates on a cap-and-trade principle, where companies receive or purchase emission allowances and can trade them based on their performance. Covering power generation, industry, aviation, and maritime transport, the ETS continues to expand with ETS II, which will include road transport and buildings by 2027. This video explains how the system works, who it covers, and how it drives decarbonization across Europe through pricing, trading, and innovation.
Carbon Border Adjustment Mechanism
The Carbon Border Adjustment Mechanism (CBAM) is the EU’s new carbon pricing policy for imports, designed to ensure that goods produced outside the EU face the same carbon costs as those made within it. Covering sectors such as steel, cement, aluminum, fertilizers, and electricity, CBAM prevents carbon leakage and promotes cleaner global production. Importers will begin purchasing CBAM certificates from 2026, reflecting the EU carbon price, while free allowances under the ETS are gradually phased out. This video explains how CBAM works, who it affects, and how companies can prepare for its financial and operational impacts.