EUA and sCER phase II price drivers: Unveiling the reasons for the existence of the EUA-sCER spread

► This paper provides a thorough analysis of Phase II drivers for EUAs and CERs. ► The empirical results show that the EUA-sCER spread shares some of the drivers for EUAs and CERs. ► Most importantly, the EUA-sCER spread is found to be explained by microstructure variables. ► Therefore, the paper suggests that the EUA-sCER spread is mainly used for arbitrage purposes.