Today the Commission has adopted a delegated regulation amending the ETS Auctioning Regulation to ensure continued successful auctions in phase 4 (2021-2030) of the EU ETS.
Following the publication of the draft amendment on the Better Regulation Portal for a four-week stakeholder feedback period, the Commission has now adopted the amendment.
It entails the first general revision of the Auctioning Regulation. The legislation governing the auctions of emission allowances needed to be changed to take account of new rules for phase 4 of the EU ETS (2021-2030) agreed as part of the revision of the ETS Directive concluded in 2018. This concerns in particular the use of the common auction platform to turn into money the allowances dedicated to the Innovation and Modernisation Fund.
Technical changes were also necessary to take account of the fact that emission allowances are classified as financial instruments under European financial legislation since the beginning of 2018.
In addition, while the auction process is widely seen as working well and the overall architecture of the auction process remains unchanged, some rules were improved and simplified based on experience from over six years of auctions in phase 3 of the EU ETS (2013-2020).
As a result of comments by stakeholders expressed during the feedback period, provisions on the submission of the auction calendars and the reporting obligations of the auction platforms on auction transactions were further clarified.
The adopted act is now submitted to the European Parliament and Council. Provided that these institutions do not raise any objections within two months, it will be published and enter into force thereafter.