What is EUA spot?
EEX EUA Spot (Daily Expiry) Underlying. EU Allowances (EUA), which permit the emission of one tonne of carbon dioxide equivalent (directive 2003/87/EC)3. Contract volume.
What is an EUA future?
European Union Allowance (EUA) An EUA Futures contract for the purposes of trading and delivering EUAs within the meaning of Chapter III of the Directive in accordance with the Rules. One lot of 1000 EUAs. Each EUA being an entitlement to emit one tonne of carbon dioxide equivalent gas.
What is current carbon credit price?
According to their estimates, the current weighted carbon price is $34.99 (as of June 2021), which is up from around $20 near the end of 2020. Before December of 2020, the IHS Markit Global Carbon Index calculation of carbon credit cost had not risen above $22.15.
What is a spot market price?
What is Spot Price. The spot price is the current price in the marketplace at which a given asset—such as a security, commodity, or currency—can be bought or sold for immediate delivery. In contrast to the spot price, a futures price is an agreed upon price for future delivery of the asset.
How does spot market work?
The spot market is where financial instruments, such as commodities, currencies, and securities, are traded for immediate delivery. Delivery is the exchange of cash for the financial instrument. A futures contract, on the other hand, is based on the delivery of the underlying asset at a future date.
What is an example of a spot market?
Examples of the spot market Examples of spot markets are commodity markets, stocks, and currency markets. Commodity markets transact various agricultural and mining products such as palm oil, coffee, tea, seeds, gold, oil, and natural gas. To be traded on the spot market, they must meet specific standards.
Where can I buy EUA futures?
Nasdaq Commodities offers a transparent and regulated marketplace for EUA Futures. As a member, you can place your orders through the Genium INET Workstation, our user-friendly and reliable trading system.
What are carbon credits selling for?
The typical price paid to landowners for carbon has ranged between $2 to $5 per tonne, but currently is about $6 per tonne. The exact amount a farmer would be paid depends on the market conditions at the time of the sale and the amount of carbon sequestrated during the year.
How does the spot market work?
The spot market or cash market is a public financial market in which financial instruments or commodities are traded for immediate delivery. It contrasts with a futures market, in which delivery is due at a later date. Spot markets can operate wherever the infrastructure exists to conduct the transaction.
What are the contract terms for EEX EUA spot trading?
EEX EUA Spot Contracts EEX EUA Spot (Daily Expiry) Minimum tick € 0.01 per EUA Minimum price flux € 10.00 per lot (€ 0.01 per EUA) Form of trading Continuous trading Fulfilment date First ECC business day after the conclus
What are EUA and Uka emissions trading rights?
Tracking the European Union and United Kingdom Emissions Trading System carbon market price day-by-day. One EUA or UKA gives the holder the right to emit one tonne of carbon dioxide, or the equivalent amount of two more powerful greenhouse gases, nitrous oxide (N2O) and perfluorocarbons (PFCs)
What is the intraday fixing price of the EEX EUA option?
The Intraday Fixing Price of the EEX EUA Future underlying the option is the market value for the underlying instrument during the day and is determined by EEX as of 2 p.m. on the last trading day of the option and announced to the Exchange Participants in due time prior to the exercise.
What are EUAs and EUA Futures?
EUAs can also be saved from one year to another if a company releases less carbon dioxide than the EUAs it holds. Use EUA futures to mitigate price risks of EUA. EUA Futures are traded in EUR, with a minimum ticker size of 0.01, in trade lots of 1 000 EUAs, using 1 EUA (for 1 metric ton of CO2) as the contract base.