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European Emissions Trading Scheme (EU ETS)

The European Emissions Trading Scheme (EU ETS) is a mandatory compliance programme for large emitters in the 25 European Union Member States.  About two billion European Allowances (EUAs) are issued each year to included companies, which establishes a cap on total aggregate emissions from these companies.  To comply with their obligations, capped companies may either reduce their emissions and sell the surplus EUAs or buy EUAs (or CERs or ERUs) in the marketplace. 

Market players include large greenhouse gas emitters from the power sector and industry, banks, hedge funds and other traders, who provide liquidity and increase market efficiency.

BGC Environmental Brokerage Services provides a centre for liquidity in the EU ETS.  Our EU brokers are acknowledged experts in their fields.  We provide voice and electronic execution to traders, market access for compliance buyers, and vital market information.  We source CERs and ERUs, run periodic auctions, broker derivatives and create liquidity in the CER secondary market.

Click here to view an animated presentation demonstrating how EU Emission Trading works. (Flash format ~1Mb)