Like these sister electric utilities that operate extensively in the North America market, E.On looking down the long barrel of carbon emission standards in Europe. The European Union Emissions Trading System (EU-ETS) was the first cap and trade system in the world. Carbon emitting entities receive an allowance based on historic emissions. If actual emissions are lower than the allowance, a tradable ‘surplus allowance’ is created. Entities emitting more than their allowance can buy the surplus to cover their deficit. Proceeds from the sale of surplus allowances are expected to off-set the investments required to reduced emissions.
|Scholven Power Plant|