Wednesday, October 10, 2012

European Union: EU/CEE: Carbon Trading Post-2012 - A Battle For Transitional Free Allocation Of Emission Allowances

Click here to read this in full @ Utility Products:

The EU Climate Change Package provides for a revision and strengthening of the Emissions Trading System (ETS). A single EU-wide cap on emission allowances will apply from 2013 and will be cut annually, reducing the number of allowances available to businesses to 21% below the 2005 level in 2020. Further, the free allocation of allowances will be progressively replaced by auctioning. In July 2011 the EU member states agreed to the EC proposal to auction 120 million emission allowances for phase 3 of the ETS in 2012, the year before phase 3 starts. These so-called "early auctions" are required in view of the widespread commercial practice in the electricity sector of selling power on a forward basis and purchasing the required inputs (including emission allowances) when they sell their output...

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