EU Carbon Allowances

This assessment represents the value of ICE EUA Futures at a 1630 London timestamp each day. EUA Futures are used to hedge emissions costs in the European Union under its Emissions Trading System (ETS). The EU ETS is a market-based approach to controlling CO2 emissions by setting a cap on the total amount of emissions allowed from certain sectors. Companies that exceed their allowed emissions must buy additional allowances, while companies that reduce their emissions can sell their surplus allowances.