34The ETS thus establishes a set of economic incentives for the reduction of greenhouse gases by the installations themselves. While the ultimate objective of the ETS is the protection of the environment, that scheme does not of itself reduce greenhouse gas emissions. On the other hand, it encourages and promotes the pursuit of the lowest cost of achieving a reduction of those emissions to a level compatible with the international commitments of the European Union and its Member States, which depends on the stringency of the total quantity of allowances allocated (judgments of 16 December 2008, Arcelor Atlantique et Lorraine and Others, C‑127/07, EU:C:2008:728, paragraph 31, and of 17 October 2013, Billerud Karlsborg and Billerud Skärblacka, C‑203/12, EU:C:2013:664, paragraph 26).
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