Carbon Emissions

EU Carbon Emission Allowances (EUAs) are the primary instrument of the EU Emissions Trading System (ETS), the world's largest cap-and-trade program. Each allowance permits the holder to emit one tonne of CO₂, with industrial emitters required to surrender allowances equal to their annual emissions. Prices are driven by energy mix shifts, economic activity, policy announcements, and the pace of the supply cap reduction schedule.