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Emission Trading Schemes (EU ETS, UK ETS)

Your trusted and valued experts for Emission Trading Schemes

Carbon procurement is all about timing.  

Navigating the EU and UK Emission Trading Schemes (ETS) can be complex, especially when carbon procurement isn't your core business. At World Kinect, we simplify the process by delivering timely market insights. Our team tracks carbon markets and key price drivers, helping you make informed decisions on when and how to secure allowances.

What sets us apart? 

Our trading desk brings deep expertise in power and gas markets, which are tightly correlated with EUA and UKA prices. This gives us a strategic edge in identifying optimal procurement windows, helping you time your carbon purchases more effectively. 

What are Emission Trading Schemes?

The EU and UK Emissions Trading Scheme (ETS) is a mandatory ‘cap and trade’ system that works by capping overall greenhouse gas emissions and requiring organizations to return an allowance for every ton of CO2 they emit during each regulatory period. To maintain compliance, businesses buy and sell allowances on the ETS carbon market.

World Kinect Energy Services’ offer within Emission Trading Schemes (ETS) include:

  • EU ETS: European Union allowance (EUA)
  • EU ETS: European Union Aviation Allowance (EUAA) UK ETS: United Kingdom Allowance (UKA)
  • Swiss ETS: Swop European Union allowance (EUA) to Emission allowances for installations (CHU) and Emission Allowances for aircraft (CHUA)
     

Benefits of Emission Trading Schemes

Transfer Only

We provide a transfer only service if you simply wish to transfer your allowances to an external account. The service is easy to setup and ensures smooth transfers of ETS volume on your behalf.

Transfer Only to Transfer ETS Volume

Transfer Only

We provide a transfer only service if you simply wish to transfer your allowances to an external account. The service is easy to setup and ensures smooth transfers of ETS volume on your behalf.

Single Trade Agreement (STA)

Our onboarding process is simple, enabling faster transactions. We also offer flexible payment terms and can arrange settlement and delivery according to your preference. A transaction fee per carbon allowance will apply to all transactions.

Single Trade Agreement (STA) to Single ETS Transactions

Single Trade Agreement (STA)

Our onboarding process is simple, enabling faster transactions. We also offer flexible payment terms and can arrange settlement and delivery according to your preference. A transaction fee per carbon allowance will apply to all transactions.

Master Agreement with Trade Confirmations

If you plan to make multiple ETS transactions over a year, we offer an easy trading process through a Master Agreement valid for each single trade. This eases the process for frequent ETS trading by ensuring standardised terms and conditions across your business.

Master Agreement with Trade Confirmations to Frequent ETS Transactions

Master Agreement with Trade Confirmations

If you plan to make multiple ETS transactions over a year, we offer an easy trading process through a Master Agreement valid for each single trade. This eases the process for frequent ETS trading by ensuring standardised terms and conditions across your business.

Multi Year Procurement Mandate

This proactive approach aligns with your procurement strategy and enables conscious management of the ETS price. We will help you with the creation of a strategy and mandate with the aim to achieve improved budgetary control and an overall goal of reducing the compliance cost.

Multi Year Procurement Mandate to Multi Year ETS Transactions

Multi Year Procurement Mandate

This proactive approach aligns with your procurement strategy and enables conscious management of the ETS price. We will help you with the creation of a strategy and mandate with the aim to achieve improved budgetary control and an overall goal of reducing the compliance cost.

What are carbon allowances?

Carbon allowances, otherwise known as emission allowances or carbon credits, are certificates that allow holders to emit a certain amount of regulated gasses. The EU and UK Emissions Trading Scheme (ETS) issues a certain number of allowances that are auctioned to power plants, factories, and other industrial facilities. Each allowance allows the holder to emit one ton of carbon dioxide or its equivalent. After a monitored period, carbon allowance holders surrender their permits to cover their actual emissions. 

World Kinect's energy consultants are experienced with the ETS market and ready to guide your carbon compliance strategy.

Why Choose World Kinect?

Extension of your Team

Extension of your Team

ETS procurement may not be your core business, but it is ours. In this field since 2005, we take care of your ETS exposure by helping reduce the need for your in-house expert personnel and providing an entire team of experts working to lower your costs, ensure carbon allowances for compliance purposes with the ever- changing regulations, and deliver insights from your data.

One Strategic ETS Partner / Strong Counterparty

One Strategic ETS Partner / Strong Counterparty

World Kinect’s long-standing expertise in physical and financial hedging products. As a public company, our balance sheet is strong, and we are in the position to be your trustworthy and resilient financial counterparty expert.

Competitive Pricing

Competitive Pricing

Get advice from ETS experts to help you understand the market dynamics. Our deep market knowledge allows us to better understand ETS price fluctuations and unpredictability to help seize market opportunities. We offer flexible and competitive payment terms.

Stakeholder Alignment

Stakeholder Alignment

Internal consensus on ETS purchasing strategy is crucial, and we can help you bring together the differing factions your organization. Our strategy workshops, bring all your relevant stakeholders to the table to discuss your best approach, gain endorsement across the board, and create a clear go-forward strategic plan.

Monitor Your Progress

Monitor Your Progress

Access our online self-service customer portal to get consolidated reporting and dashboards of your emission cost and carbon data, with full visibility of your ETS transactions.

Our Emission Trading Schemes Services

Emission Trading Scheme Procurement

As a supplier of ETS allowances, we assume full entitlement for all ETS transactions. We use Kinect Energy Green Services AS, a Norwegian legal entity, for transactions. The transactions can have either standard or delayed settlement with physical delivery. We provide a service for buying or selling carbon allowances on your behalf. Our service is beneficial for a diverse clientele from various industries, aviation and shipping.

Emission Trading Scheme Management

Our ETS Management offering is a proactive solution for managing ETS exposure. From market monitoring, analysis, and market access, we manage your price and volume risk for an agreed period. This allows you to gain better control of your ETS exposure.

This service includes:

  • Creation of strategy 
  • Management of price and volume risk
  • Market access
  • Market intel
  • Fundamental & technical analysis
  • Regular meetings
  • ETS Transaction Report

The Benefits of Emission Trading Scheme Management:

Define Your Strategy

Our Emission Trading Scheme Strategy Workshops help you make an informed decision for your ETS exposure. Our process is dynamic and collaborative. We aim to understand your objectives and price risk tolerance. We assist you in determining the suitable strategy that meets your unique requirements. We can help with the evaluation and improvement against your objectives. This can be particularly advantageous for complex multi-site and global operations.

strategy workshop documents

 

 

Achieve Your Budget Targets

We assist businesses with Emission Trading Scheme regulations and compliance, reduce costs and we aim to optimize revenue if you have a surplus of carbon allowances. ETS Management is a proactive solution for managing ETS exposure, including market monitoring, analysis, market access, hedging and risk management. Our service streamlines the coordination of compliance transactions and aims for budgetary control of the ETS cost. We include the daily ETS price information, the weekly ETS report, webinars, newsletters after ETS policy events, and an ETS price outlooks in the service offering.

people working on budgeting

 

 

Monitor Your Compliance Cost

Our reporting system gives transparency of the Emission Trading Scheme exposure, and KPIs through the ETS dashboard. The ETS team will arrange meetings with the customers to provide status updates and assessments concerning the ETS portfolio.online reporting tool

 

Emission Trading Scheme Market Intel

Accessing experienced ETS specialists with knowledge in the field can enhance your efficiency and effectiveness, allowing you to focus on other strategic priorities. As active participants in the ETS markets since 2005, our expertise offers you and your teams a solid understanding of market dynamics.
 

Analysis
  • Daily prices
  • Weekly market update
  • Newsletters
  • Webinars
  • Price outlooks twice a year
Consulting

Mini-consultancy reports examples:

  • Regulatory developments
  • Price forecasts
  • Price scenarios

Consultancy reports examples:

  • How to reduce the ETS cost
  • Effects of CBAM
Compliance reporting

UK ETS compliance reporting:

  • Emissions from operational activity in the UK

World Kinect Delivers

The strength of our service comes from our energy expertise sharing hundreds of years of combined experience in Carbon Management, Renewable Energy, and Sustainability Consulting. If trading ETS allowances is not the right fit for your organization, we have multiple options for mitigating every scope of your carbon emissions.

How can we help you with emission trading schemes?

Get in touch with us.