Carbon Offset Projects

Projects › EUA Phase II cancellation

Under the EU Emissions Trading Scheme, each participating country has a National Allocation Plan (NAP) specifying caps on greenhouse gas emissions for individual power plants and other large point sources.

Each facility is issued a certain number of allowances, equating to a maximum amount of emissions for a particular period (e.g. 2009-2010). These allowances are targeted to produce a Europe-wide reduction in emissions of 8% from 1990 levels by the end of the second commitment phase, in 2012.

Facilities that exceed their emissions allowances are forced to buy EUA’s in the financial markets from either speculators or from other facilities that have not used their entire emissions allowance for the period, or face a hefty fine per tonne of “over emission”.

By removing EUA’s from circulation and retiring them with our account at The UK Environment Agency we increase demand for the allowances and effectively increase the level of reductions made above the 8% target, thus creating an offset

Due to the relatively small take up of this service client funds are “batched” until we can reach a minimum trade size to deal on international climate exchanges.

Prices will change on a regular basis to reflect foreign exchange movements and the market price of EUA’s.