Carbon Emissions

The European Union Emission Trading System (EU-ETS) is a cornerstone of the EU’s policy to combat climate change and its key tool for reducing greenhouse gas emissions cost-effectively. It is the world’s first major carbon market and remains the biggest one. ACT Financial Solutions provides advice and market access to many companies participating in the EU-ETS, which operates in all 28 EU countries plus Iceland, Liechtenstein, and Norway.

Carbon Emission Compliance

Certain industrials, energy producers, and airlines who operate within the EU are subject to emissions regulations (EU-ETS). These regulations limits emissions from more than 11000 heavy energy-using installations operating within the EU, Iceland, Liechtenstein, and Norway. The EU-ETS regulation covers roughly 45% of the EU’s greenhouse gas emissions, and works on the ‘cap and trade’ principle. After each year a company which is subject to the EU-ETS regulation must surrender enough allowances (EUA) to cover its verified emissions.

These allowances (EUA) can be acquired through receiving by free allocation, or the buying through MIFID II licensed firms such as ACT Financial Solutions. If a company does not surrender enough allowances to cover it’s emissions as verified, major fines are imposed.

ACT Financial Solutions provides advise on; how to procure these allowances, sell a surplus of allowances, in a time and cost efficient manner, or optimizing the usage of credits, all while ensuring compliance with the financial regulations applicable, as all EU-ETS compatible credits are considered a Financial Product under MIFID II.

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