EUA
EUA (European Emission Allowance) are digital certificates issued under the EU ETS that grant the holder permission to emit one tonne of CO₂ equivalent. EUAs are tradable commodities, making them a market-based tool to reduce emissions cost-effectively. Classified as financial instruments under MiFID II, EUA trading is subject to EU financial regulations, including licensing and reporting. Their prices fluctuate based on market dynamics and policy changes. Regulated entities must surrender EUAs annually to cover emissions. Additionally, financial institutions can use EUAs for speculative purposes.