Emission trading systems are market instruments designed to reduce greenhouse gas (GHG) emissions. The EU established its emission trading system through Directive 2003/87/EC, followed by Spain in 2005 with Law 1/2005 (the text is only in Spanish). If your company is included in this scheme, we are here to support you throughout the journey.

1. According to the regulations, each entity included in the emission trading system (such as industrial plants, power stations, or airline operators) is allocated a certain number of emission certificates, either for free or through auction.

2. These entities must surrender emission certificates equivalent to their GHG emissions for that period each year.

3. If participants emit more GHGs than the allocated rights, they must purchase additional certificates in the market, incurring extra costs.

4. Conversely, if they reduce their emissions, they can keep the surplus rights to cover future needs or sell them to another system participant lacking sufficient certificates.

• Controlling GHG emissions: Emission trading systems are an effective tool for reducing greenhouse gas emissions and tackling climate change.

• Creating a carbon price: Establishing a market for emission certificates generates a CO₂ price, incentivising companies to reduce their emissions.

• Flexibility for businesses: Companies can reduce their emissions or buy additional emission certificates depending on the more cost-effective option.

As an international leader in the energy sector, Axpo offers your company a wide range of services related to emission certificates, including:

• Trading: You can rely on us if you've exceeded your limit and need to buy emission certificates or have surplus rights to sell.

• Advisory: We help you navigate the most relevant carbon regulations and markets.

• Management: We ensure you get the best value from your emission certificates portfolio.