|
|
| Home » Carbon management » European Union Allowances (EUA) |
|
European Union Allowances (EUA) |
|
Greenhouse gas emission and its reduction is a major concern among all nations of the world. European Union Allowances (EUA) is basically a measurable unit, which represents the right to emit only 1 tonne of CO2 or any other greenhouse gas.
In fact, the EUA is measurable unit of the European Union Emission Trading Scheme. The term allowances basically refers to the permission given to countries to emit only 1 tone of Carbon-di-Oxide or any other greenhouse gas within a specific time period. The basic purpose of introducing this measurable unit is to restrict carbon emission and in turn reduce global warming.
In order to acquire a EUA, every member country must first draw up a national plan. In this plan it needs to mention how it intends to distribute the allowance for the period under consideration. How these allowances will be allocated amongst the various installations that emit greenhouse gases need also be mentioned over here.
Directive 2003/87/EC of the European Parliament and of the Council states that 95% of these allowances will be allocated to these installations free of cost for the first 3 years. In case the amount of allowance falls short, then operators needs to buy additional amounts from the market. Operators with surplus allowances can sell the excess allowances.
All member nations are expected to ensure that installation operators surrender the exact amount of allowances matched with the amount of emissions. In case they fail to do so, then these operators will be required to pay an emission penalty, which is 10Euro for every tonne of CO2.
With the help of European Union Allowances (EUA) it will be possible to monitor and check carbon emissions and thus reduce the same. This will in the ling run ensure mitigation of climatic changes caused by greenhouse gases.
|
|
|
|
|
|