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17. What is the TNAC?
May 24, 2024
3 min

17. What is the TNAC?

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The Total Number of Allowances in Circulation (TNAC) measures the oversupply of emission allowances in the EU ETS and affects their prices.

17. What is the TNAC?
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What is the purpose of the TNAC?

The Total Number of Allowances in Circulation (TNAC) measures the oversupply of emission allowances in the EU ETS and affects their prices. It is an indicator of how much more allowances have been historically issued by regulators compared to the volumes of CO2 emitted in the EU economy.

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What is the TNAC formula?

TNAC Formula:TNAC=Supply−(Demand+Allowances in the Market Stability Reserve)TNAC=Supply−(Demand+Allowances in the Market Stability Reserve)

Supply Includes:

  • Allowances from previous phases
  • Unused free allowances since January 2013
  • Issued but unallocated allowances in the Market Stability Reserve
  • Some allowances in the Innovation Fund

Demand Includes:

  • Total verified emissions from installations

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When is the TNAC published?

The TNAC is published annually in May or June, showing the previous year's data. In 2022, the total number of allowances in circulation was 1,134,794,738. On June 1st 2024, the latest data released showed a TNAC of 1 111 736 535 allowances.

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Written by
Monna Dimitrova
Research Lead
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