European Allowances (EUA)

Euro­pean Allowances (EUA) are emis­sion allowances for approximately 13,000 Euro­pean facil­i­ties, mandated to par­tic­i­pate in the com­pli­ance market of the Euro­pean Emis­sions Trad­ing Scheme (EU ETS).

EUAs account for one tonne of CO2 emissions or the equivalent amount of other greenhouse gases.

In the cur­rent, third trad­ing period (2013–2020) facil­ity operators are being allotted a portion of free per­mits; with a few excep­tions the free allo­ca­tion will be reduced from 80% in 2013 to 30% in 2020. The total num­ber of exist­ing per­mits will be reduced lin­early, every year, by 1.74%.

Facil­ity oper­a­tors who do not own sufficient per­mits, must pur­chase the difference — either on the EU or national auc­tions or on the sec­ondary market.

Each year, the emissions of facility operators are audited, after which they have up to the end of April to surrender the entire number of permits covering emissions for the previous year. In the event that the emission permits are not surrendered, facility operators face a penalty of 100EUR/tonne.

Advan­tag offers inex­pen­sive, fast and safe access to the auc­tions of the Euro­pean Union at Euro­pean Energy Exchange (EEX) in Leipzig or to the Exchanges and OTC markets.

Advantag is a direct member (Non-Clearing Member) of several Energy – and Environmental Exchanges and has a vast network of clients and counterparts. As a result, we are able to buy or sell large volumes with expedicious clearing and settlement.