EU Allowance (EUA) - Definition, glossary, details

EU allowance (EUA) refers to the carbon credits traded under EU emission trading scheme. One EUA represents one ton of CO2 that the holder is allowed to emit. Allowances are freely allocated to firms which can be traded in carbon market. The firms should surrender EUAs equivalent to their emissions at the end of each compliance period. Those companies that emit more than their permitted allowance has to buy the extra allowances from the open market, while those firms that emit less can sell the balance allowance units to those firms that are in need of the same.

Other Terms

Enhanced Oil Recovery (EOR) EU Emission Trading Scheme (ETS) Enhanced Greenhouse Effect
Enhanced Gas Recovery (EGR) Emissions Trading Emissions Cap
Early crediting Ecological footprint

Power Plant CCS - Glossary

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