EMISSIONS

Trading Products

SPOT TRANSACTIONS

When selling EUAs, you must first verify their availability on your GHG account. Remember, you can only transfer EUAs to accounts that have been added to your list of trusted accounts. You will then receive the cash within two business days after the trade confirmation. You may check all individual steps in our product file.

When buying EUAs, you must first check your cash availability since payment must occur within two business days after price confirmation. We – as brokers with a trading account in the GHG Registry – may transfer EUAs to non-trusted accounts which will take 26 hours. If you wish to guarantee an immediate transfer, you will be expected to communicate your GHG account to our account manager at SAGA Commodities in a timely manner.

Price definition is made on the basis of a market price based on futures negotiated through a direct OTC deal between the client and SAGA Commodities. The offered price is a net price in Euros, excluding VAT.

PDF Spot Transaction Brochure

 

FORWARD TRANSACTIONS

[Forward transaction at a fixed price]

You buy allowances at a price defined at the signature of the contract and with delivery set in the future.

Forward transactions are a good tool to implement in your carbon management strategy in order to hedge carbon costs related to production; and postpone its payment for the future. By the time maturity comes, the production output will have already financed the needed purchase.  

[Forward transaction at the average market price]

With this forward transaction you buy your allowances by efficiently following, and accumulating, all market fluctuations. This tool is great for a carbon management strategy where you care less about a predefined price than a realistic market price – at the given moment where your industrial production occurs. The need here is to plan the allocation of carbon for each production unit cost.

[Repo Capital financing]

Upon reception of your free annual allocation, allowances become assets on your balance sheet which bring you dividends and no interest.  You may use these allowances to finance your operations on a year-to-year basis, or even longer periods of time by borrowing from next year’s allowances, given that you will be left with enough units to surrender for your verified emissions. Practically, this is a product combination between a spot sale and a forward purchase of allowances.