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Accelerate emissions reduction trajectories

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.

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How does my EUA investment affect the carbon budget in the EU?

How does my EUA investment affect the carbon budget in the EU?

Investing in spot EUAs (European Union Allowances) directly reduces carbon emissions by removing allowances from the market, limiting industries' pollution. This influences carbon market dynamics and can accelerate decarbonization, unlike derivative contracts which are speculative. You can directly influence the carbon budget available to industries.
Are the EUAs that I can buy the same as those that industries buy?

Are the EUAs that I can buy the same as those that industries buy?

Investing in EU carbon allowances (EUAs) allows individuals to directly impact carbon emissions by removing allowances from the market, influencing the EU's carbon budget, unlike derivative investments. Homaio enables individuals to invest in spot EUAs, supporting responsible investing and the EU's climate goals.
Can I delete forever my carbon allowances?

Can I delete forever my carbon allowances?

Individuals and organizations can impact climate change by purchasing and permanently deleting European Union Allowances (EUAs), effectively reducing the overall carbon budget and strengthening the EU Emissions Trading System. Canceling EUAs guarantees measurable emission reductions, unlike some voluntary carbon offset projects. This allows for ethical investment and responsible investing in a greener future.
Why is it important to purchase EUAs sooner rather than later?

Why is it important to purchase EUAs sooner rather than later?

Purchasing carbon allowances now is crucial because it immediately reduces the carbon budget, mitigating climate change impacts; delaying action leads to irreversible consequences and accelerates harm as CO2 accumulates in the atmosphere. Immediate action allows more time for adaptation and prevents the escalation of extreme climate events. This represents a form of ethical investment and impact investing into green finance.
Does my investment have a climate impact even if I sell my EUAs?

Does my investment have a climate impact even if I sell my EUAs?

Holding European Union Allowances (EUAs) longer delays carbon emissions, tightens the EU ETS market to encourage sustainable investments, and allows for selling into a more effective market driving decarbonization, creating a positive climate impact even after the sale and contributing to green finance. This impacts investing in renewable energy and promotes responsible investment.
What role does financial activity play in the EU ETS?

What role does financial activity play in the EU ETS?

The EU ETS benefits from financial actors, including individual investors, who enhance market liquidity, reduce volatility, and improve price discovery, making it a more effective tool for decarbonization and green finance. The expansion of financial activity with spot transactions contributes to a more dynamic and resilient trading environment within the European carbon market. This increased participation and demand leverage free market dynamics for optimal results in carbon neutrality.