Compliance

Achieve your EU-ETS Obligations

European Emission Allowances (EUAs) and Certified Emission Reductions (CERs) are regulated in the EU ETS ‘cap and trade’ principle. A cap is set on the total amount of greenhouse gases that can be emitted by companies in a certain period of time. The cap is reduced gradually so that total emissions fall. Within the cap, companies may receive or buy emission allowances (EUAs), which they can trade with one another as needed. They can also buy limited amounts of Certified Emission Reductions (CERs) around the world. The limit on the total number of allowances available ensures that they have a value. After each year a company must surrender enough allowances to cover all its emissions, otherwise heavy fines are imposed. If a company reduces its emissions, it can keep the spare allowances to cover its future needs or else sell them to another company that is short of allowances.