Are you receiving emissions allowances from the government?

Polluting company

Certain jurisdictions operate a cap-and-trade scheme. Under such a scheme, a company is allowed to emit pollutants within a specific limit set by the government for a specified period over which emissions will be measured (compliance period). For emissions within the allowed limit, the government typically grants the related number of emissions allowances to the company. After the end of the compliance period, the company is required to surrender the number of emissions allowances matching emissions during that period. A company can trade emissions allowances with other parties to ensure that it has enough to match its emissions. 

This page references specific IFRS® Accounting Standards – see our glossary for the full list of standards.