EU & UK Emissions Trading System (ETS) Solutions

The EU Emissions Trading System (EU ETS) and the UK ETS are cornerstone carbon markets designed to reduce greenhouse gas emissions through a cap-and-trade system. Grey Epoch has been active in these markets since their inception, delivering market access, expert advisory, and strategic solutions to help participants meet compliance obligations efficiently and cost-effectively.

Trade Allowances

Competitve Pricing

Expert Advice

Industries We Support

Grey Epoch provides tailored EU ETS and UK ETS solutions across key sectors, helping businesses manage compliance and market risk effectively:

  • Energy-Intensive Industrials – including steel, cement, refining, and chemicals

  • Power Generation – utilities and independent producers

  • Aviation – commercial and cargo operators covered under ETS rules

  • Shipping – maritime operators now brought into scope of emissions trading

  • Fuel Suppliers – wholesalers, importers, refiners, and distributors

Key Dates & Milestones for ETS

Our ETS Services

  • Market Access

    Gain  access to EUAs (EU Allowances) and UKAs (UK Allowances) across compliance periods with flexible trading sizes and delivery schedules.

  • Compliance Support

    Leverage our expertise in emissions reporting, surrender strategies, and regulatory updates to maintain smooth compliance and avoid penalties.

  • Forward Procurement

    Lock in allowance prices in advance to manage exposure to price swings and secure budget certainty.

  • Price Risk Management

    Use solutions that put a cap on prices to control cost uncertainty within your carbon portfolio.

  • Spot Trading

    Access the market for buying or selling allowances with immediate delivery.

  • Cash Flow Optimisation

    Benefit from deferred payment solutions that align carbon purchases with your financial planning and liquidity needs.

Get In Touch

“We enjoy working with Grey Epoch due to their responsiveness, excellent technical knowledge and the team always being available for a detailed explanation of what is happening in the market.”

— Dutch ETS Participant

TAKE THE NEXT STEP

Manage your ETS risks with confidence.

Speak to Grey Epoch’s expert advisors today and get a tailored emissions trading solution for your business.

40%

typical savings in trading fees

1bn

carbon products traded annually

2nd

largest ETS trader globally

18yrs

active in carbon markets

 FAQs

 

  • The EU Emissions Trading System (EU ETS) is the world’s largest carbon market, designed to reduce greenhouse gas emissions through a cap-and-trade mechanism.

    Companies in covered sectors are required to hold allowances for every tonne of CO₂ they emit. These allowances can be traded, creating a market price for carbon.

    By tightening the cap each year, the EU ETS incentivises businesses to reduce emissions cost-effectively while driving investment in low-carbon technologies.

  • The UK ETS was introduced in 2021 after the UK left the European Union, replacing the UK’s participation in the EU ETS. While both systems operate under the same cap-and-trade principle, the UK ETS has its own allowance units (UKAs), rules, and compliance deadlines.

  • Compliance with ETS rules applies to industries with significant greenhouse gas emissions. In the EU ETS, this includes power generators, energy-intensive industries, and aviation operators.

    The UK ETS covers similar sectors, and is set to expand to shipping and fuel suppliers. Businesses in these categories must monitor, report, and surrender allowances equal to their annual emissions.

  • EU Allowances (EUAs) and UK Allowances (UKAs) are the tradable units used in their respective systems.

    One EUA or UKA represents the right to emit one tonne of CO₂ (or equivalent greenhouse gases).

  • Grey Epoch provides businesses with direct market access, expert advisory, and structured trading solutions that reduce the overall cost of compliance. Our clients typically achieve up to 40% savings in trading fees compared to traditional brokers. By leveraging forward procurement, tailored price risk management, and cash flow optimisation strategies, we help companies secure allowances at competitive prices, smooth out market volatility, and align carbon purchasing with budget needs. With over 18 years of ETS experience, Grey Epoch ensures your business stays compliant while minimising costs.

  • There is a financial penalty per missing allowance (e.g., €100 per tonne in the EU, plus inflation adjustments).

  • Yes. Businesses that operate in both the European Union and the United Kingdom may be required to comply with two separate carbon markets.

    Companies must monitor emissions, purchase allowances, and surrender them under both schemes independently.

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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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