18. What is the EU ETS calendar?

What is the EU ETS compliance cycle? 

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There are several important dates in the EU ETS compliance cycle, enabling installations to account for their CO2 emissions and participate in the market to meet their compliance obligations.

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What are the key dates in the EU ETS in 2023?

• Declare CO2 Emissions: Installations must declare how much CO2 they have emitted at the beginning of April. This step remains unchanged.
• Allocation of Free EUAs: Before 2024, installations received their free EUAs at the end of February. Starting in 2024, this allocation has moved to the end of June.
• Surrender Carbon Allowances: Previously, installations had to surrender carbon allowances to match their emissions by the end of April. From 2024, this deadline has been moved to the end of September.
• Announcement of TNAC: The Total Number of Allowances in Circulation (TNAC) is communicated yearly at the end of May or the beginning of June.

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Why is the compliance cycle in the EU ETS important? 

These dates are crucial for installations to meet their compliance obligations in the EU ETS. Their carbon accounting has to be in line, the corporate financial flows to match carbon prices should go accordingly as well. The compliance cycle affects EUA demand levels, with higher seasonal demand for compliance leading to upward pressure on prices.

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