Risk glossary

 

European Emissions Allowances (EUA)

Represents a permit to emit one tonne of carbon under the EU Emissions Trading System. Since one European Union Allowance Unit (EUA) of one tonne of CO2, is equivalent to one ‘assigned amount unit’ of CO2 defined under Kyoto, it is possible to trade EUAs and United Nations Framework Convention on Climate Change-validated Certified Emission Reductions (CER) on a one-to-one basis within the same system.

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