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by ESMA, published in its Q&A tool · not legislation · published 24 Jun 2024 [Answer Published]","attribution":{"prepared_by":"ESMA","published_by":"ESMA","published_in":"ESMA Q&A tool","document_type":"qa_answer","legal_nature":"not_legislation","addressees":"not stated in the document","dates":{"published_on":"2024-06-24","question_submitted_on":"2023-04-27","locators":{"published_on":"ESMA Q&A Excel export ESMA_QA_847, column 'Esma responses', date line","question_submitted_on":"ESMA Q&A Excel export ESMA_QA_847, column 'Date of submission'"}},"adoption":null}},"provenance":{"official_url":"https://www.esma.europa.eu/publications-data/questions-answers/847","check":{"result":"matched","checked_at":"2026-10-26","against":"the ESMA publication"},"repo_path":"spaces/mifid-ii/level-3/q-and-a/esma/esma-qa-847-interpretation-of-emission-allowances-under-c-4.md","body_sha256":"1c3c926cc37d1d6e77d5b8c98d4ec97b80f02d88ea8eea2b32427475c70c4191"},"units":[],"markdown":"---\ntitle: \"ESMA Q&A 847 — Q&A — Interpretation of emission allowances under C(4) [Answer Published]\"\nshortTitle: \"ESMA Q&A 847 — Q&A — Interpretation of emission allowances under C(4) [Answer Published]\"\nanswer_id: ESMA_QA_847\ntopic: \"* EMIR Reporting\"\nstatus: \"Answer Published\"\ntype: qa\ninstrument_type: qa\nauthority: ESMA\nbinding: false\nbinding_character: non_binding\nlegal_status: in_force\nregulation: \"MiFID II\"\nmifid_level3: true\nmica_level2: false\nlegal_basis: \"MiFID II main text, Annex I, Section C on financial instruments\"\ndate: 27 April 2023\nsource_link: https://www.esma.europa.eu/publications-data/questions-answers/847\nlifecycle: \"Answer Published\"\ntext_version: \"ESMA Q&A register, 27 April 2023\"\nsource_url: \"https://www.esma.europa.eu/publications-data/questions-answers/847\"\ncheck_status: matched\nverified: true\nlast_checked: 2026-10-26\nchecked_against: \"the ESMA publication\"\nsource:\n  prepared_by: \"ESMA\"\n  published_by: \"ESMA\"\n  published_in: \"ESMA Q&A tool\"\n  evidence:\n    prepared_by: \"ESMA Answer\"\n    locator: \"ESMA Q&A entry ESMA_QA_847: field 'ESMA Answer', no 'Answer provided by' line\"\ndocument_type: \"qa_answer\"\nlegal_nature: \"not_legislation\"\naddressees: \"not stated in the document\"\ndates:\n  published_on: \"2024-06-24\"\n  question_submitted_on: \"2023-04-27\"\n  locators:\n    published_on: \"ESMA Q&A Excel export ESMA_QA_847, column 'Esma responses', date line\"\n    question_submitted_on: \"ESMA Q&A Excel export ESMA_QA_847, column 'Date of submission'\"\nlifecycle_label: \"Answer Published\"\n---\n\n**Answer by ESMA, published in its Q&A tool · not legislation · published 24 Jun 2024 [Answer Published]**\n\n*Answer Published · ESMA Q&A register, 27 April 2023 · Checked against the ESMA publication on 26 Oct 2026 · [Official source](https://www.esma.europa.eu/publications-data/questions-answers/847)*\n\n| | |\n|---|---|\n| **Full title** | ESMA Q&A 847 — Q&A — Interpretation of emission allowances under C(4) \\[Answer Published\\] |\n| **Prepared by** | ESMA |\n| **Published by** | ESMA, in the ESMA Q&A tool |\n| **Reference** | ESMA_QA_847 |\n| **Document type** | Q&A |\n| **Legal nature** | Not legislation |\n| **Addressees** | Not stated in the document |\n| **Dates** | Published 24 June 2024; question submitted 27 April 2023 |\n| **Legal basis** | MiFID II main text, Annex I, Section C on financial instruments |\n| **Related instruments** | None recorded |\n| **Text on this page** | Word for word — the full text of the ESMA publication |\n\n**Interpretation of \"emission allowances\" under C(4)**\n\n### Question\n\nDoes the financial instruments in Annex I, section C(4) include derivatives on emission allowances not recognized under the EU ETS, thus making these reportable under EMIR?\n\nSpecific example: Derivatives on UKAs, recognized under UK ETS.\n\n***\n\n### Answer\n\nYes. The definition of derivatives on emission allowances provided in Section C(4) of Annex I to MiFID II does not distinguish between emission allowances recognised for compliance under the EU ETS Directive, and other emission allowances. Therefore, derivatives on emission allowances not recognised for compliance under that Directive qualify as financial instruments.\n\n***\n\n**Source:** [ESMA original document](https://www.esma.europa.eu/publications-data/questions-answers/847)\n"}