Laure Bouys
Latest articles
UKAs and EUAs: Why Hold Both When You're Already Invested in European Carbon
If you're already invested in European EUAs, do you need to bother with UK UKAs? Short answer: yes. Long answer: the two markets are correlated at around 80% over time, but that correlation hides distinct dynamics (political, industrial, calendar-based) that make UKAs both linked and differentiated from EUAs. That's precisely what makes the combination interesting: an EUA core for liquidity and depth, a UKA satellite for political catch-up and the associated risk premium. Here's why.
July 13, 2026
What is the Climate Impact of a UKA? One Tonne of CO₂ Pulled Off the Market, Measured and Verifiable
Holding a UKA does something simple and radical: it takes one right-to-emit tonne of CO₂ off the UK market. Not an offset, not a voluntary credit, not a tree-planting promise. A regulated allowance, accounted for by the State, that exits the system the moment a non-compliance investor holds it. It's what we call an additional climate action: measurable, verifiable, legally framed. Here's how it works, and why this impact is one of the most robust in today's climate-finance landscape.
July 13, 2026
The UKA-EUA Convergence Play: Anatomy of a Catch-Up in Motion
May 2025, London summit: Keir Starmer and Ursula von der Leyen formally state their intention to link the UK ETS to the European system. A new term has been circulating among carbon analysts ever since: the Convergence Play. The mechanic is simple: UKAs trade today around 20% below EUAs, a discount that has already partially closed since May 2025. The residual mechanical upside is around +20 to +25%. Here's how it works, why it's happening now, and what the Swiss-EU precedent teaches us.
July 13, 2026
What Performance Can You Expect from UKAs? The 3 Drivers of UK Carbon Allowance Returns
UKA performance rests on three clear drivers: catch-up of the spread with European allowances (~+40% mechanical upside), engineered scarcity of an asset whose supply shrinks every year, and the 2050 Net Zero trajectory that anchors durable demand. Reference analysts (BloombergNEF, ICIS, Veyt, Redshaw) converge on forecasts above £100 by the end of the decade. Carbon desks call this kind of setup a convergence trade. At Homaio, we call it the Convergence Play: a macro-political bet that is both readable and measurable.
July 13, 2026
What is a UKA? A Complete Guide to UK Carbon Allowances
UKAs (United Kingdom Allowances) are the carbon allowances of the UK Emissions Trading Scheme (UK ETS). Each UKA represents the right to emit one tonne of CO₂ and works on a Cap-and-Trade principle: a government-set ceiling that shrinks every year. Today, UKAs trade at roughly a 20% discount to European allowances (EUAs), making them one of the most-watched assets in the carbon market, what carbon desks call a convergence trade, and what we at Homaio call the Convergence Play.
July 13, 2026
Passing on your wealth in 2026: plan ahead and protect it
Passing on your wealth in 2026: plan ahead and protect it How can you make sure the fruits of a lifetime’s work are passed on to your loved ones under the best conditions, without inheritance tax taking too large a share of your estate?
July 13, 2026
Wealth Income 2026: Complete Tax Guide
You receive rent, dividends, or interest and you’re wondering how the tax authorities will tax them in 2026? Understanding the tax rules that apply to your wealth income is essential to manage your finances effectively. Between the Prélèvement Forfaitaire Unique (PFU), the option for the progressive income tax scale, and the various social contributions, the tax landscape can seem complex. All the more so as changes—especially an increase in the CSG—are on the horizon, making clear, up-to-date information more necessary than ever.
June 19, 2026
