EU ETS phase 3 allowance auctions: Statement by Jos Delbeke, Director-General for Climate Action
- Start date : 15/03/2011 00:00:00
"Today the European Commission proposed that 120 million allowances should be auctioned in 2012, ahead of the start of the 2013-2020 trading period in the EU Emissions Trading System.
The Commission's proposal takes the form of a draft amendment to the EU ETS Auctioning Regulation which has been submitted to the Climate Change Committee.
In addition to the 300 million allowances from the NER300 demonstration programme, which the European Investment Bank intends to monetise by the end of 2012, the proposed amount is considered appropriate to ensure a smooth transition to the third trading period starting in 2013.
Together with stakeholders we have identified the relevant demand and supply factors to be considered. There is broad consensus on these factors, but also wide recognition that significant uncertainties exist with regard to most of these factors which will only be narrowed down over time. Stakeholders have expressed a strong preference to have the early auction volume fixed now as this gives market actors time to adapt to the chosen level.
A timely decision on early auction volumes is also important for the further preparation of the procurement of auction platforms. We will therefore take the discussions with Member States forward swiftly and aim at an agreement in the Climate Change Committee before the summer."
Director-General for Climate Action
The Climate Change Committee brings together representatives of all Member States.
24 Member States, representing some 60% of the total auction volume in phase 3, will make use of a common platform, while Germany, Poland and the United Kingdom have informed the Commission of their intention to appoint separate platforms.
Spot auctions (immediate delivery) will be the rule. For such auctions, however, two things are necessary - a platform for auctioning spot and the single registry. Before this is in place, the Auctioning Regulation provides for the possibility to procure transitional platforms for auctions of "futures" and "forwards" (delayed delivery). This allows starting auctions of phase 3 allowances before the single registry with all features necessary for spot auctions is fully operational.