EUA

An EU Allowance is the tradable unit of the EU Emissions Trading System, each conferring the right to emit one tonne of CO2-equivalent. Shipping companies surrender EUAs for verified emissions on voyages to and from EU and EEA ports, phased in at 40 percent of 2024 emissions, 70 percent of 2025, then 100 percent from 2026, with methane and N2O added from 2026. Allowances are bought at auction or on the secondary market, so the carbon cost tracks the live EUA price, making fuel choice and speed directly price-sensitive.