The EU ETS allocates companies with carbon credits that permit them to emit a certain level of greenhouse gas, known as European Union Allowances (EUAs). Companies that emit less than their entitlement have the right to sell their credits to other businesses that are above their cap.
The European Carbon Index is composed of EUA futures contracts, as actively traded on the European Climate Exchange, at a discounted value across different maturities. The Clean Development Mechanism allows devel
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