Products
Environmental
Europe EUAs
European Union Allowances
European Union Allowances are the core allowance unit of the EU Emissions Trading Scheme at emitter level. They allow the bearer to emit one tonne of carbon dioxide into the atmosphere. In addition, only the following industries are covered under the EU ETS: energy activities (combustion installations with a rated thermal input exceeding 20MW: mineral, oil refineries, coke ovens); production and processing of ferrous metals; mineral industry (cement clinker, glass and ceramic bricks); and pulp, paper and board activities. Around 1,500 companies are currently included covering around 45% of all of Europe’s emissions.
As the EU ETS is a “Cap and Trade” Scheme, there is a ceiling to the amount of CO2 that a participating company can emit. Above this amount they must purchase more permits through the market and below this, they are able to sell their emission allowances back into the market. A complete set of spot and derivative instruments is available from TP Global Green to expedite this process.
At the end of each year, participating firms must surrender emission permits equal to their actual CO2 emissions to their respective government for cancellation. Failure to do so will result in a fine of €100 per tonne in addition to having to purchase the equivalent shortfall for retirement the following year.
