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If their emissions exceed the EUA allowance, they must buy EUAs through auction at ETS.
Source: https://www.thehindubusinessline.com/opinion/climate-is-eus-big-trade-weapon/article66584722.ece
“The certificates are sold at an equivalent price to the rolling weekly average price of the daily EU Allowances (EUAs) auctions held within the EU ETS,” Oliver explained.
Source: https://www.etftrends.com/climate-insights-channel/europes-carbon-tariff-emissions-game-changer/