Emissions Markets for Aviation

Grey Epoch covers the full spectrum of aviation carbon markets—including the EU ETS, UK ETS, Swiss ETS, CORSIA, and CCAs.  Our services are designed to deliver clear guidance, streamlined processes, and cost-effective structures, enabling aviation companies to meet their compliance obligations with efficiency and confidence.

Trade Allowances

Competitve Pricing

Expert Advice

We guide airlines to manage specific challenges that the aircraft operators are facing. We assist them in designing and implementing emission purchasing strategies, making better and timely trade decisions, minimising costs, and ensuring hassle-free compliance.

As one of the largest ETS traders globally, with a long track record as the leading options trader on EEX and ICE, we deliver both the liquidity and expertise needed to optimise strategies and control costs.

ETS

CORSIA

CORSIA established by the International Civil Aviation Organisation (ICAO) in 2016, serves as the first global market-based measure for aviation. CORSIA provides a standardised, coordinated approach to offsetting international aviation emissions, utilising voluntary carbon credits.

We assist airlines and aircraft operators in meeting their CORSIA obligations by providing access to eligible carbon credits, compliance strategies, and market insights.

Our team ensures you stay aligned with ICAO requirements while optimising cost and minimising risk.

Our Services

Grey Epoch supports aircraft operators with tailored solutions for the ETS and CORSIA. We work with airlines, cargo carriers, and private aviation to source EUAs, UKAs, and CCAs competitively and structure procurement strategies that optimise cash flow and reduce compliance costs. Our market expertise helps clients manage exposure, budget effectively, and navigate overlapping schemes with clarity and confidence, while providing comprehensive support in navigating the emissions landscape.

Manage Price Volatility

With the price fixed, you’re not exposed to market fluctuations.

Fix Now, Pay Later

With a forward transaction, you pay the bulk of the fixed price up to 3 years later.  

Budget Certainty

Lock in your profits by fixing the price.

Most popular

Forward Procurement

Forward buying in the ETS for aviation involves agreeing to buy EU Allowances at a future date to lock in prices now without a large upfront payment.

Spot Trading

Purchase or sell EU Allowances, with payment and delivery within 5 business days.

Spot trading ensures immediate delivery and can help optimise costs compared to long-term strategies through responding quickly to price movements.

Price Risk Management

With our deferred payment solutions, you can lock in carbon allowance prices today and schedule delivery and payment at a later date.

This gives you the flexibility to meet compliance needs without tying up all capital upfront.

Cash-Flow Optimisation

With our deferred payment solutions, you can lock in carbon allowance prices today and schedule delivery and payment at a later date.

This gives you the flexibility to meet compliance needs without tying up all capital upfront.

TAKE THE NEXT STEP

We help you navigate complex aviation emissions rules and emerging compliance deadlines with clarity and confidence.

Contact Grey Epoch today to learn more about our services and how we can help you navigate the regulatory landscape.

40%

typical savings in trading fees

1bn

carbon products traded annually

2nd

largest ETS trader globally

18yrs

active in carbon markets

 FAQs

 

  • The European Commission has adopted legislation that sets out who will be legally responsible to surrender EUAs. Opposite to what the market was expecting, the default responsibility will be with the owner of the ships and not the manager.

    The regulation sets out that the entity that has assumed the responsibility for the operations of the ship from the shipowner, such as a manager, will be responsible for surrendering EUAs only if it has been duly mandated by the shipowner to do so. That same entity would have to provide the administering authority with a document that clearly states it is mandated by the shipowner to comply with EU ETS obligations. The document needs to be signed by that entity and the shipowner. In absence of such a document, the shipowner shall be considered as the entity responsible for EU ETS obligations.

  • Ships from 5,000 gross tonnage will be included in the EU ETS from 2024. Ships from 400 gross tonnage might be included from 2027.

    Allowances are needed for 40% of verified emissions in 2024, rising to 70% for 2025 and 100% for 2026.

  • Part of the proceeds will be allocated to the Innovation Fund. The fund supports, among other things, investments aimed at facilitating the decarbonisation of maritime transport.

  • Companies that have not surrendered enough allowances to cover their regulatory obligation, will be fined €100 per allowance for the entire shortage. Additionally, the company still needs to surrender the allowances in retrospect.

    If a company does not comply for two consecutive compliance periods, its vessels can be barred entry or confiscated by a Member State.

  • From 2024, for ships departing or arriving to/from an EEA port, 50% of the emissions will be counted. This might increase to 100% in 2028, depending on the measures taken by the IMO and third-party countries.

  • An Operator Holding Account (OHA) is a registry account for companies with a compliance obligation. The account allows you to send, receive and surrender allowances.

    For EU shipping companies, the OHA must be opened in the Member State where the shipping company is registered.

  • A Trading Account (TA) is a registry account that anybody can open. The account allows you to send and receive allowances.

    Shipping companies can already open a TA at any of the Member States. In our experience, Malta has a relatively swift turnaround time of about 6-8 weeks.

    It is recommended that shipping companies open a TA as soon as possible so that they can send and receive allowances.

  • The EU ETS operates on a "cap-and-trade" principle. It sets a maximum limit (cap) on greenhouse gas emissions for various industries, including the maritime sector. Emission allowances are available through the ICE and EEX exchanges, where they are traded on the secondary market and brought into circulation through auctions.

    Maritime companies must acquire Allowances for the carbon that their vessels emit. This market-driven approach incentivizes emission reductions and fosters an overall decrease in carbon emissions within the EU

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Grey Epoch Europe Limited (FRN: 959638) is an appointed representative of Thornbridge Investment Management LLP (FRN: 713859) which is authorised and regulated by the Financial Conduct Authority.

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