Investing in carbon allowances (EUAs) helps delay CO₂ emissions by temporarily removing these allowances from the market. This action contributes to increasing the carbon price, encouraging industries to invest in decarbonization solutions and fostering a more efficient market for the hardest-to-abate emissions. By holding and strategically selling EUAs, the investment plays a key role in driving the transition toward a sustainable economy.
Owning EU Allowances (EUAs) is, in essence, a way to delay carbon emissions. When you buy EUAs, you temporarily remove them from the carbon market — meaning they can’t be used by industrial facilities until you decide to sell them.
This withdrawal reduces the number of allowances available at any given time, directly limiting how much CO₂ can be emitted. By holding your EUAs for as long as possible, you’re not only acting as an investor — you’re actively constraining carbon supply and creating a measurable climate impact.
Holding your EUAs longer strengthens and extends your influence on the EU Emissions Trading System (EU ETS). A tighter market and higher prices push companies to accelerate their transition and adopt cleaner technologies.
Some decarbonization solutions are already technically and economically ready — but without sufficient carbon price pressure, industries might delay their adoption. By keeping your EUAs off the market, you help sustain that pressure and encourage long-term investment in green innovation.
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EUA prices are designed to increase over time as the EU tightens its emissions cap. The longer you hold your allowances, the greater the potential upside. Rising carbon prices not only benefit investors — they also make low-carbon technologies more competitive, driving faster adoption across industries.
You can decide how long to hold your EUAs based on price trends and the pace at which decarbonization technologies become viable (as shown by the MACC curve).
When you eventually sell your EUAs, the market will likely look very different. Fewer allowances will be available due to stricter EU targets, and industries will have already tackled the easiest emissions to cut.
By that stage, your EUAs will be used for the most difficult — yet still essential — emissions that keep the European industrial system running. Selling in such a context ensures your allowances contribute where they matter most.
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By investing in EUAs, you’re taking an active role in shaping the carbon market. You delay emissions, contribute to tightening the EU ETS, and support the long-term appreciation of carbon prices — all of which accelerate industrial decarbonization.
Your impact goes well beyond holding and selling allowances. It’s a tangible contribution to building a more sustainable, low-carbon economy.
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