The European Commission received another blow this week, as the International Emission Trading Association (IETA) joined the ranks of the critics of its draft proposal regarding auctioning in the third phase of the EU ETS. The EC draft includes an opt-out provision that would allow countries to set their independent auctioning platforms until 2016 and avoid joining the central one. This week the IETA has sent an official letter to the EC asking it to avoid the opt out provision at all, or to try and define which kind of control it is going to exert over the national platforms, including the possibility to veto their creation. The IETA also called for the definition of a timeline determining volumes and schedule of release of emission permits through auctions, joining the call of European utilities. Although the UK and Germany are adamant in their position regarding keeping in operation their own national auctioning platforms, the list of opponents of the opt-out provision continues to grow: after the IETA, rumour has it that the European Climate Exchange is against it as well.

Climate Policy News

• This news is extracted from the Climate Policy News : a CMCC weekly column that summarises the latest news on international climate change agreements, the updates on the carbon market and the energy and technology updates in the realm of climate change. Go to the web page and see all previous issues since March 2007.
• This week: IETA joins debate over auctioning platform
  details for EU ETS phase III; Bulgaria suspended from carbon trading; The American Power Act; The carbon market this week – Download the May 10-16, 2010 Newsletter [Pdf 44 kb]