Emissions Markets for Industrials

Industrials in sectors like steel, cement, refining, and chemicals face high compliance demands under the EU ETS and UK ETS. Grey Epoch helps operators manage carbon allowances efficiently with tailored strategies that cut costs, improve cash flow, and reduce market risk, ensuring compliance while protecting competitiveness.

Trade Allowances

Competitve Pricing

Expert Advice

Since the first years of operation, the EU ETS covers energy-intensive industries, including:

  • Steel and metals

  • Cement and lime

  • Chemicals and refining

  • Pulp and paper

  • Glass and ceramics

  • Other industries with installations >20MWh

Industries

ETS

We guide industrials to manage specific challenges that the European industry is facing. We assist them in designing and implementing emission purchasing strategies, making better informed 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.

Our Services

To help industrials efficiently, Grey Epoch Europe 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 Purchase

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.

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.

Direct Procurement

Direct procurement is the simplest solution. You buy Allowances for payment and delivery within 5 business days.

Direct procurement can be done throughout the year. Buying early, ahead of emitting activities provides price certainty.

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

Optimise your industrial emissions management and ensure compliance deadlines are met with 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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