A market-based mechanism designed to reduce greenhouse gas emissions. Under this scheme, a cap is set on the total amount of emissions that can be released by covered entities, such as industries or power plants. Emission allowances are issued, each representing the right to emit a specific amount of greenhouse gasses. By creating a market for emission allowances, the ETS incentivizes emission reductions while providing flexibility for businesses to find the most cost-effective ways to comply with emissions targets.

To hold or store an asset for future use or transactions. EUAs can be banked, meaning that they can be purchased in a certain year and used for compliance reasons at a later time.

An independent EU authority that contributes to safeguarding the stability of the European Union's financial system by enhancing investor protection and promoting stable and orderly financial markets.