COtwo Advisors Physical European Carbon Allowance Trust is a Delaware statutory trust that holds European Union Emissions Trading System (EU ETS) allowances—compliance instruments covering roughly 40% of EU greenhouse gas emissions from power generators, industrial facilities, and aircraft operators across 31 countries. The Trust issues publicly traded shares on NYSE Arca that track the performance of EU allowance (EUA) prices, allowing individual and institutional investors to gain passive exposure to the carbon market without directly participating in EU ETS auctions or managing physical allowances. The Trust generates revenue through a management fee of 0.79% annually on assets under management, which covers all routine operational costs including custody, administration, and regulatory compliance, while authorized broker-dealers pay per-transaction fees to create and redeem large basket positions.