Emission allowances: Difference between revisions

An opportunity for regulatory arbitrage, created out of thin, hot air.<ref>Boom boom.</ref> Notwithstanding their close connection with the commodities markets, emission allowances are not commodities, but rather a sort of play on global energy policy. In an odd way they resemble [[crypto]], in that they are fully dependent on a collective belief (amongst the world’s governments) that climate change can, and indeed needs to, be managed by imposing financial incentives on the generation (or consumption) of carbon dioxide. [[Emission allowance]]s themselves formally resemble financial instruments, though their custody and legal form are rather unique, and lawyers will get exercised about how one effectively takes security over them. You can’t for example, in Holland.

===Their relationship with European regulation. It’s complicated.===