EU Carbon Allowances (EUA)

Description

EU ETS carbon allowances (EUA) represent the right to emit one tonne of CO₂. The EU ETS is the world's largest carbon market. Prices impact energy costs, industrial competitiveness, and green transition economics.

Key risks

regulatory-risk

This risk may negatively affect the instrument’s performance under certain market conditions.

volatility-risk

This risk may negatively affect the instrument’s performance under certain market conditions.

The list of risks is not exhaustive and highlights the most material structural and market-related factors.

Portfolio role & behavior

Economic role

benchmark

Behavior

pro-cyclical

The information provided is for analytical and informational purposes only and does not constitute investment advice.

Any decisions are made independently by the user and at their own risk.

For details, see legal terms.