ERUs, EUAs, CERs and ROCs for Reducing GHGs

Emissions reduction schemes are founded on a collective international initiative to reduce the environmental impact of the greenhouse gas (GHG) emissions generated by business and consumers. There is no simple panacea and a wide range of approaches is being pursued by governments and regulators to tackle the problem. To the uninitiated this must seem a bewildering topic.

HMRC recently published its policy on the VAT treatment of cross-border trading in emission allowance instruments. This topic is assuming greater significance as an increasing number of businesses are now trading such instruments commonly referred to...