The EU Emissions Trading System (EU ETS) is a key tool for combating climate change. It works on a cap-and-trade principle, where companies trade emission allowances. The system covers power plants, industrial plants, and aviation activities. To determine if a company is subject to the EU ETS, the size, activities, and emissions level are considered. Compliance involves accurate monitoring, reporting, and verification. A detailed Emissions Monitoring Plan must be submitted annually. Non-compliance can result in fines. Understanding and adhering to the EU ETS demonstrates environmental responsibility and can improve a company's ESG score. Seeking expert advice or using specialized tools can assist with determining eligibility and compliance.