The aim of the project is a comprehensive analysis of the price formation process of exchange-traded European emission allowances (EUAs). The primary goal is to determine the influence of publicly and privately available information on the market allowance price of CO2. In particular, the project will clarify which news are important for the price formation in the European Emission Trading Scheme (EU ETS) and how they actually affect the price of EUAs. A further analysis will show whether asymmetric information (e.g. private information of few very important market participants) plays a major role in the price formation process of CO2 certificates. The results will show whether price formation of CO2 certificates differs very much from the price formation process in classical equity markets. The analysis is important for understanding the functionality, transparency and efficiency of markets for artificial property rights.