The EU launched a tender for a transitional auctioning platform so as to ensure a smooth transition from the current trading period into the third phase of the EU Emission Trading Scheme rules, which will begin in 2013. Indeed, the ETS rules provide for the auctioning of 120 million general emission allowances already in 2012, in addition to some 30 million aviation allowances.

The closing date to submit a bid for prospective bidders, which will likely include energy bourses European Energy Exchange (EEX) and ICE Futures Europe, is May 3rd. The eventual winner of the permanent common EU platform is expected to auction about 70 million permits on behalf of 24 Member States, during the current year.

The entire platform will also host sales of aviation carbon permits. On the contrary, Germany, Poland and the UK decided to opt out of the planned common platform for auctioning emission allowances and appointed their own auction platforms which will host sales of 190 million, 120 million and 110 million permits per year, respectively. From 2013, Member States will collectively sell about 1.1 billion CO₂ allowances per year as the EU moves away from freely allocating permits and towards charging all companies for them.

Read the full article in the latest issue of Climate Policy News by Marinella Davide.

Photo by Steakpinball.