Climate Action

Commission submits draft amendment to back-load 900 million allowances to the years 2019 and 2020

Stock Market Bull Recovery - Buying : Green Financial Trading Screen © iStockphoto

The European Commission today tabled a draft amendment to postpone the auctioning of 900 million allowances from 2013-2015 to later in phase three of the EU emissions trading system, which ends in 2020. The proposal to 'backload' auction volumes in phase three takes the form of a draft amendment to the EU ETS Auctioning Regulation which was submitted today to the EU Climate Change Committee.

The back-loading does not affect the overall volume of allowances to be auctioned in phase three, only the distribution of auction volumes over the eight-year period (the 'auction time profile').

The figure of 900 million allowances has been put forward in the light of views expressed by Member States and stakeholders in response to the initiatives taken by the Commission when it completed the review of the auction time profile last July.

At that time, the Commission transmitted a first draft of the amendment to the Auctioning Regulation to the Climate Change Committee without including a figure. It also proposed a minor amendment to the ETS Directive that aims to clarify that the timing of auctions within a trading period may be changed by amending the Auctioning Regulation in order to ensure the orderly functioning of the carbon market. That draft Decision still requires approval by the European Parliament and Council.

The Commission will on Wednesday adopt a report on the functioning of the European carbon market. In this report it will present a set of options for structural measures to tackle the supply-demand imbalance and invite stakeholder views on them.