Swap Transactions Trades Services
SWAP is the exchange of EUAs allowances in CERs (Certified Emissions Reductions ) or ERUs (Emissions Reductions Units). CERs and ERUs are international credits set by CDM (Clean Development Mechanism ) and JI (Joint Implementation) – Kyoto Protocol Mechanisms. According to EC Directive 2003/87/EC, operators may use CERs and ERUs from project activities up to a percentage of at least 11 % from allocations determined for the period 2008-2020 or 2008-2012, taking into account the highest amount.
- Aircraft operators may also use credits up to a maximum amount corresponding to a percentage of 1.5 % of yearly verified emissions for the compliance period 2013-2020.
- EUAs echange into international Kyoto credits (CERs and ERUs) is done by selling EUAs at a higher price and buying CERs or ERUs at a considerably lower price. Both ETS installations and airlines can take advantage of this current opportunity.
- The advantage of the SWAP transaction is the price difference between EUAs and CERs or ERUs , called “SPREAD”. This price difference generates significant cash entry for your company.
- Do you need a comprehensive understanding of the carbon emissions trading within the EU ETS? We are here to offer you a broader perspective about the international carbon market and advise you towards those transactions or activities types, which best suit your needs.
- Carbon Expert team remains at your service to help you optimize your CO2 emissions trading so that your business can take full advantage of carbon transactions.