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Carbon Compliance Provides

The global carbon credit market was valued at approximately $850 billion, representing a 164% increase from the previous year. This growth highlights the increasing importance of carbon markets in addressing climate change. There are currently three major Emissions Trading Systems (ETS) operating around the world:

‍European Union’s Emissions Trading System (EU ETS)
California Global Warming Solutions Act (USA)
Chinese National Emission Trading System (China)

The EU ETS, established in 2005, was the first emissions trading system in the world and remains the most liquid carbon futures exchange globally. The EU carbon allowance futures has surged by over 1,400%, and by around 270% in just the last three years. AFS has direct access to the EU ETS

Cap and trade

Cap and trade systems work by limiting the number of carbon allowances available each year. Emitters captured within an emissions trading scheme must buy allowances to match their emissions. As the number of allowances decreases, the price per allowance will increase, making alternative technologies relatively more financially attractive.
- Direct air capture and storage

Swiss ETS

The Swiss Emissions Trading System was linked to the EU ETS in 2020 and works on the same cap and trade principles as the EU ETS. AFS Energy provides access to Swiss CHU emissions allowance auctions.

EU ETS

The EU ETS is the world’s leading cap and trade market, including heavy industry, power producers, aviators, and the maritime sector. AFS Energy helps buyers meet their goals. Whether you have long-term investments, pass carbon costs to customers, or are looking for an affordable alternative, we offer access to EU Allowances on the secondary market.

Uk ETS

The UK ETS replicates the EU ETS for the UK post-Brexit. Though most fundamentals are quite similar to the EU ETS, a few key differences exist. AFS Energy offers market access and analysis for the UK.

As the global effort to combat climate change intensifies, carbon compliance has become a vital tool for controlling and reducing greenhouse gas (GHG) emissions. Through regulatory frameworks and market-based mechanisms, carbon compliance ensures that industries meet environmental standards, playing a key role in global decarbonization initiatives.

Carbon compliance is a critical component in mitigating climate change by enforcing regulations that reduce GHG emissions. It leverages structured policies and markets to compel industries to meet environmental benchmarks, significantly contributing to broader decarbonization goals. These frameworks are essential for aligning industrial activity with the global objective of reducing emissions, ensuring accountability and progress toward a sustainable future.

‍Decarbonization focuses on reducing carbon dioxide (CO2) emissions across high-emission sectors, particularly those reliant on fossil fuels. It is a key strategy in limiting global temperature rise, as targeted by the Paris Agreement. Achieving decarbonization requires transformative shifts in energy production, industrial processes, and consumption patterns driven by stringent carbon compliance systems that regulate emissions and incentivize cleaner alternatives.

Environmental Benefits:
Carbon compliance frameworks like Emissions Trading Systems (ETS) and carbon taxes reduce GHG emissions by pricing carbon, incentivizing industries to lower emissions and invest in cleaner technologies. For example, the EU ETS reduces emissions by capping total emissions and allowing the trading of emission allowances.
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Economic Incentives:
Carbon compliance frameworks create a market for carbon allowances, incentivizing companies to adopt efficient technologies. Issuance by EU governments of carbon allowances generates revenue for reinvestment in renewable energy and sustainability initiatives.
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Regulatory Compliance & Risk Management:
Adhering to carbon compliance regulations helps companies avoid penalties and legal risks while enhancing their reputation and competitiveness by demonstrating a commitment to sustainability.
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Market Stability & Predictability:
Robust carbon compliance frameworks create stable market conditions, enabling long-term investments in low-carbon technologies. This stability boosts investor confidence and drives sustainable economic growth.