ISDA Launches Digital Emissions Transactions Definitions

ISDA has launched a natively digital version of its documentation for emissions allowance transactions, enabling the framework to be updated more efficiently as emissions trading systems (ETSs) evolve.

The 2026 ISDA Emissions Transactions Definitions provide standardized documentation for physically settled over-the-counter derivatives transactions referencing emissions allowances under mandatory ETSs in the EU, the UK and the US.

The new definitions comprise a fully digital definitional booklet and accompanying confirmation templates, allowing users to incorporate the relevant version when they execute a transaction, rather than having to amend their relationship-level documentation whenever the framework is updated. This means the documentation can be updated more efficiently to reflect changes to existing ETSs or the introduction of new schemes.

“The launch of the 2026 ISDA Emissions Transactions Definitions marks another milestone in the digitization of our derivatives documentation. Converting these terms into a fully digital, versionable booklet will enable market participants to maintain and adapt their documentation more efficiently as the market evolves, giving them greater certainty over the terms that apply to individual transactions,” said Katherine Tew Darras, ISDA’s General Counsel.

The 2026 ISDA Emissions Transactions Definitions are available now on ISDA MyLibrary: www.isda.org/isda-solutions-infohub/mylibrary/

For Press Queries, Please Contact:

Nick Sawyer, ISDA London, +44 20 3808 9740, nsawyer@isda.org

Joel Clark, ISDA London, +44 20 3808 9760, jclark@isda.org

Christopher Faimali, ISDA London, +44 20 3808 9736, cfaimali@isda.org

Michael Milner-Watt, ISDA London, +44 20 3808 9777, mmilner-watt@isda.org

Nikki Lu, ISDA Hong Kong, +852 2200 5901, nlu@isda.org

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