Accelerate emissions reduction trajectories
By purchasing carbon allowances, you are effectively reducing the overall carbon budget available to industries and contributing to their price rise.
The European Union Allowances (EUAs) that you can now purchase for your portfolio are identical to those used for EU Emissions Trading Scheme (EU ETS) compliance. As the carbon budget for the European industrial installations is limited, buying these allowances decreases the amount available for industries to emit CO2.
EU regulators have designed the EU ETS with a gradually decreasing supply to bring Europe towards carbon neutrality by 2050. By purchasing EUAs, you further contribute to increasing their scarcity by removing them from the total carbon budget.
Homaio introduces a new type of demand that was previously absent from the demand-supply price curve. This means that fewer carbon allowances are available for industries to match their emissions.
So, when you buy and hold EUAs, you make them an increasingly scarce resource for industries. And in turn, prices rise. As releasing carbon into the atmosphere becomes more expensive, it becomes more financially viable for industries to invest in decarbonization technologies.
By purchasing EUAs, you are increasing their scarcity, driving up prices, and expediting the shift towards industrial decarbonization.