The European Commission has approved the UK’s national auction platform signalling the go ahead for the trading of emission allowances – including from aviation – under the EU Emission Trading System (EU ETS).
The next phase of the EU ETS, which starts in 2013 and runs until 2020, or phase III, makes auctioning of allowances the main method of allocation. During phase III, 50% of general emission and 15% of aviation emission allowances will be auctioned across the region.
Auctions can be carried out via a common EU platform or member states can set up their own national auctioning platforms.
But the EC’s Climate Change Committee (CCC) has to approve national auctioning platforms prior to a three-month scrutiny period by the European Council and Parliament before any auctions can be scheduled.
The UK hopes to start auctioning aviation and phase III emission allowances in November this year. Germany and Poland have also opted to set up their own auctioning platforms.
Following a decision by the CCC last year, the UK will have a 12 million share of 120 million phase III emission allowances to auction before the end of the year and approximately 7 million aviation allowances.
“This announcement is a further step towards ensuring that we can start auctioning phase III and aviation allowances as planned. The endorsement by the EU Climate Change Committee reflects the strength of the UK’s proposal and continued leading role in carbon auctioning,” commented Energy and Climate Change Minister Greg Barker.
For further information:
UK promises to cut red tape on EU ETS (8-May)
UK starts issuing free EU ETS allowances to airlines (2-Mar)
European Parliament votes to prop up Emissions Trading System (29-Feb)
12 July 2012