EU Allowances (EUA) are climate credits (or carbon credits) used in the European Union Emissions Trading Scheme (EU ETS).[1] EU Allowances are issued by the EU Member States into Member State Registry accounts. By April 30 of each year, operators of installations covered by the EU ETS must surrender an EU Allowance for each tonne (1,000 kg) of CO2 emitted in the previous year. The emission allowance is defined in Article 3(a) of the EU ETS Directive as being "an allowance to emit one tonne of carbon dioxide equivalent during a specified period, which shall be valid only for the purposes of meeting the requirements of this Directive and shall be transferable in accordance with the provisions of this Directive".[2]
The EU Allowances are connected to the EUs goal of achieving climate neutrality in the EU by 2050 and a 55% reduction in greenhouse gas emissions by 2030. [3]
- ^ "Understanding the European Union's Emissions Trading System". Clean Energy Wire. 2014-09-25. Retrieved 2020-04-25.
- ^ "European Union Allowance (EUA)". www.emissions-euets.com. Retrieved 2019-12-19.
- ^ "Emissions cap and allowances". ec.europa.eu. Retrieved 2022-06-14.