EDF Trading was one of the first entrants in the European emissions trading market and is now one of the top three market participants in European emission allowances (EUA) and certified emission reduction (CER) credits. It is also active in the renewable energy credit (REC) market in the United States.

It is a global business which works with a variety of Clean Development Mechanism (CDM) project developers in China, India, Brazil and Russia; industrial customers in EU countries; Japanese counterparts; and utilities and banks.

EDF Trading is responsible for the execution of EDF and EDF Energy’s CO2 requirements. 95% of EDF Group’s electricity output in France is carbon free. However, as Europe’s largest electricity producer, EDF’s annual allocation in the EU Emissions Trading Scheme is around 100 million tonnes of carbon.

EDF Trading has built a broad portfolio of carbon credit purchase contracts by working with project developers worldwide. These projects are diversified by country and by type, and use over 15 different methodologies of carbon emission reduction (including wind, hydro power, biomass, industrial energy efficiency, coal mine methane, as well as wastewater and MSW management).  As the North American renewable energy credit (REC) and carbon markets continue to develop, EDF Trading is working with its customers in developing projects to help mitigate environmental exposure.

EDF Trading manages the EDF carbon fund of almost €300 million. The fund is used by EDF Group to diversify its sourcing of carbon emission allowances and to meet its environmental commitments under optimum economic conditions. The fund involves EDF and all its main European affiliates, including EDF Energy in the UK, Edison in Italy, and EnBW in Germany.