ELI5: Explain Like I'm 5

European Union Emission Trading Scheme

Imagine you and your friends have a bunch of toys, and your parents only want you to play with toys that don't make a mess or hurt the environment. They have a rule that you can only play with toys that have a sticker on them that says they are "environmentally friendly."

Now imagine that big companies in Europe have factories that make things like cars, electricity, and clothes. These factories sometimes make a lot of pollution that hurts the air, water, and land around them. Just like your parents, the European Union (EU) also wants companies to use environmentally-friendly ways to make things.

To make sure companies follow the rules, the EU made something called the "EU Emission Trading Scheme." This is like a kind of game where each factory has points that they can use to make pollution. If a factory makes less pollution than they're allowed, they can sell extra points to other factories that make too much pollution.

This game encourages factories to find ways to reduce pollution so they don't have to buy more points from other factories. It also helps the EU to make sure all factories are using environmentally-friendly ways to make things.

Overall, the EU Emission Trading Scheme is like a big game that helps the environment by encouraging European factories to use cleaner ways to make the things we use every day. Just like your parents want you to use toys that don't harm the environment, the EU wants factories to make things that are safe for the environment too!