Auctioning

EUA auctioning is the process by which the European Commission and EU Member States sell European Union Allowances (EUAs) to the market—mainly through the European Energy Exchange (EEX)—as the primary method of EUA distribution under the EU ETS, ensuring transparent, market-based allocation. Auctions are open to eligible compliance entities and financial institutions, with prices determined by supply and demand. Revenues from these auctions go to Member States and are typically used to support climate and energy-related initiatives, while also providing a real-time signal for the cost of emitting one ton of CO₂.