EMIR and Emission trading scheme: Difference between pages

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European Market Infrastructure Regulation<ref> http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2012:201:0001:0059:EN:PDF</ref> (EMIR) came into force as binding law within the European Union in 2012, although certain of its requirements came into force after a period of delay.
''Environmental policy''.


The objective of EMIR is to reduce the risks posed to financial systems from the vast web of [[Over the counter]] (OTC) derivative transactions and the contingent large credit exposures that may arise as a consequence. The Regulation achieves this object by three significant requirements for:
(ETS).  


• Central clearing and margining of standardised OTC derivatives (with certain exemptions for Non-Financial Counterparties)
An administrative approach used to control pollution by providing economic incentives for achieving reductions in the emissions of pollutants.


• Reporting of all derivative transactions to a trade repository


• Risk mitigation measures for all non cleared derivatives including collateral exchange and confirmation and reconciliation procedures
For example, the European Union Emissions Trading System (EU ETS) is a mandatory cap and trade scheme that requires Europe's heavy industries and power generators, as the continent's major emitters of carbon dioxide, to monitor and report annually on their carbon dioxide emissions and to purchase and return an amount of emissions allowances to the government that represents each year's carbon dioxide output.




== See also ==
:<span style="color:#4B0082">'''''Emissions to fall as caps reduced'''''</span>
* [[ESMA]]
 
* [[MiFID]]
:"Emissions trading works by setting a cap on the total amount of greenhouse gases that can be emitted by polluters and issuing allowances accordingly.
* [[Trade repository]]
 
* [[Legal entity identifier]]
:The cap [for a given polluter] is reduced over time so that [their] total emissions fall.
* [[AIFMD]]
 
* [[CCP]]
:Carbon allowances can be bought at auction and traded, and these markets determine the carbon price."
* [[CSD]]
* [[FC]]
* [[NFC]]
* [[RTS]]
* [[UTI]]


:''Climate change A to Z - Financial Times.''


== Other links ==
[http://www.treasurers.org/otc ACT briefing note: European regulation of OTC derivatives: Implications for non-financial companies, April 2013 ]


[http://www.treasurers.org/node/9344 EMIR edges near, The Treasurer, September 2013]


[http://www.treasurers.org/node/9406 Frequently Asked Questions for non financial counterparties - updated December 2013]
== See also ==
* [[Cap and trade]]
* [[Carbon Border Adjustment Mechanism]]
* [[Carbon trading]]
* [[EU Emissions Trading System]]  (EU ETS)
* [[Streamlined Energy and Carbon Reporting]]
* [[UK Emissions Trading Scheme]] (UK ETS)


[http://www.treasurers.org/node/9873 Companies hope for relief from EMIR, Sally Percy, The Treasurer, February 2014]




==References==
==External link==
<references />
*[https://www.ft.com/content/c617f52a-b46a-4581-8b66-8d92f672f77c Climate change A to Z - Financial Times]


[[Category:Capital_Markets_and_Funding]]
[[Category:Manage_risks]]
[[Category:Managing_Risk]]

Revision as of 13:10, 18 April 2022

Environmental policy.

(ETS).

An administrative approach used to control pollution by providing economic incentives for achieving reductions in the emissions of pollutants.


For example, the European Union Emissions Trading System (EU ETS) is a mandatory cap and trade scheme that requires Europe's heavy industries and power generators, as the continent's major emitters of carbon dioxide, to monitor and report annually on their carbon dioxide emissions and to purchase and return an amount of emissions allowances to the government that represents each year's carbon dioxide output.


Emissions to fall as caps reduced
"Emissions trading works by setting a cap on the total amount of greenhouse gases that can be emitted by polluters and issuing allowances accordingly.
The cap [for a given polluter] is reduced over time so that [their] total emissions fall.
Carbon allowances can be bought at auction and traded, and these markets determine the carbon price."
Climate change A to Z - Financial Times.


See also


External link

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