The European Union’s Emissions Trading System (EU-ETS) is the engine of the global carbon market, accounting for more than 80% of the global market value of emissions trading permits. Additionally, a number of other States and sub-national actors have either linked their emissions trading systems to the EU-ETS, or contemplate doing so in the future. Given the size of the EU-ETS, these countries are thus largely tying the viability of their emissions trading schemes to the health of the EU-ETS. The lessons learned are highly pertinent for other emerging national and regional emissions trading schemes, or may even serve as a “template” for a future global carbon market. Professor Burns will briefly outline the genesis and evolution of the EU-ETS, as well as the major problems that currently afflict it and their implications for long-term climate policymaking in the European Union. In conclusion, he will offer a series of suggestions on how to reform the EU-ETS to ensure that it meets its overarching objectives of driving fuel-switching and technological innovation.