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
Competitive Pricing
Expert Advice
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
Industries We Support
Key Dates & Milestones for ETS
Get your carbon allowances in 2 days
Our ETS Services
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Market Access
Gain access to EUAs (EU Allowances) and UKAs (UK Allowances) across compliance periods with flexible trading sizes and delivery schedules.
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Compliance Support
Leverage our expertise in emissions reporting, surrender strategies, and regulatory updates to maintain smooth compliance and avoid penalties.
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Risk Management Solutions
Choose from a variety of solutions to support your business needs: Forward Procurement, Price-Cap, Spot Trading, and Cash-Flow Optimisation.
ETS Risk Management Solutions
To help businesses, Grey Epoch offers access to procurement and hedging solutions 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 EU ETS 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.
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.
Price Cap
A price cap will provide you with some level of price certainty, while still being exposed to price swings up to the value of the cap. This solution allows you to set the maximum price you will pay for allowances, fixing your maximum exposure.
There is no minimum price.
“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.
FAQs
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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.
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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.
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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.
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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).
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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.
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There is a financial penalty per missing allowance (e.g., €100 per tonne in the EU, plus inflation adjustments).
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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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For the EU ETS, you must complete the following key tasks every year:
1 January: Start of the monitoring year.
31 March: Submit verified emissions report for the previous year.
30 September: Surrender the required allowances for the previous year.
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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. Grey Epoch LLC is a limited liability company registered in Delaware, USA.
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