EU Emissions Trading System (EU ETS )implemented by Directive 2003/87/EC, with its subsequent amendments and completion, on the establishment of a trading system for certificates of greenhouse gases emissions at the community level, is the main EU policy instrument to combat climate change having as objective reduction of greenhouse gases emissions.

EU-ETS covers approximately 45% of all EU emissions, relying on limiting the greenhouse gases emissions via allocation of annual allowances to the industrial sectors covered by system, under the form of greenhouse gases emissions certificates (EUA).

A EUA certificate represents 1 tonne of CO2 or 1 tonne of CO2 equivalent (CO2e) emitted.

The scheme operates on the basis of allocation and trading of greenhouse gas emissions cerificates (EUA) at EU level.

Within the allocation, companies can buy or sell EUA certificates on carbon market. It is established the so-called “cap and trade” principle, mechanism based on commercial principles designed to encourage reductions of greenhouse gases emissions, in a technical and economical manner.

By assigning a price for each tonne of greenhouse gases emitted, EU-ETS system stimulates investments in technologies with low CO2 emissions. This system forced the managing boards of the companies to put the cost of emissions on agenda, thus stimulating the ingenuity and creativity of companies to find innovative and less expensive ways to combat climate change. The system has created lots of new sectors of related services, as well as trading, financing, management and audit of greenhouse gases emissions.

Common exchange „Currency”, namely certificate for greenhouse gases emissions is on the basis of EU-ETS scheme and it gives the right to emit one tonne of CO2e.

Operators who hold EU-ETS installations may receive annualy free allocations. These allocations may or may not cover the annual emissions of installations. If the annual allocations of certificates are below the level of emissions, operators can buy certificates on the market or they can use those received in the previous years, if they have remained.

EU-ETS provides flexibility, allowing to the operators to choose the most effective option for managing emissions, with as low costs as possible:

• investments in efficient technologies with low greenhouse gases emissions;
• purchse additional certificates on the market;
• managing the portfolio of existing certificates.

TDR Energy is actively involved in the trading market for certificates of greenhouse gases emissions type EUA, EUAA, CERs ERU, offering all kinds of services for trading:

• SPOT;
• FORWARD;
• FUTURES;
• SWAP;
• OTC.