Who can participate in EUA auctions?
Eligible persons include operators including parent companies, subsidiaries and affiliates bidding on their own account; investment firms authorised under Directive 2004/39/EC (Markets in Financial Instruments Directive – MiFID) bidding on their own account or on behalf of clients; credit institutions authorised under …
Do EU ETS expire?
what causes more allowances being auctioned. EU ETS Directive foresees that the share of allowances to be auctioned will remain the same after 2020. EU leaders decided in October 2014 that free allocation shall not expire, but the share of allowances being auctioned will not reduce during the next decade.
Who can buy EU ETS allowances?
The EU ETS follows a “cap-and-trade” approach: the EU sets a cap on how much greenhouse gas pollution can be emitted each year, and companies need to hold European Emission Allowance (EUA) for every tonne of CO2 they emit within one calendar year. They receive or buy these permits – and they can trade them.
What is an ETS allowance?
Tradable emission allowances are allocated to participants in the market; in the EU ETS this is done via a mixture of free allocation and auctions. One allowance gives the holder the right to emit 1 tonne of CO2 (or its equivalent).
Are offsets allowed in EU ETS?
International Offsets are permitted for use in the EU ETS (and in some other Emissions Trading Systems), however, there are some specific rules that dictate how many and what kind of offsets can be used for compliance.
Can CERs be used in EU ETS?
Exchange of credits Since phase 3, CERs and ERUs are no longer compliance units within the EU ETS and must be exchanged for EU ETS emission allowances.
What is free allocation in ETS?
In the EU ETS, free allowance allocation is used to safeguard the competitiveness of the regulated industries and to avoid carbon leakage. In Phase I and II, most allowances were given for free. With Phase III, auctioning became the default method for allocation of allowances.
Can carbon offsets be used in ETS?
What offsets are eligible for compliance? Within the EU ETS, only Commitment Period 2 (“CP2”, i.e. issued after 31st December 2012) Certified Emissions Reductions (“CERs”, i.e. carbon offsets issued by the United Nations Framework Convention on Climate Change) are eligible for use against compliance obligations.
Can CER be traded?
It is only when the CER is actually sitting in an operator’s trading account that its value can be monetized through being traded.
What is ETS shipping?
ETS. Estimated Time of Sailing. Chartering, Maritime, Trade.
Where can I find the EU ETS regulation on auctioning?
A full documentation of EU ETS Regulation on auctioning is available on the website of the European Commission. In coordination with the European Commission, EEX has published the volumes that will be auctioned in 2022 in the auction calendar .
How are Emission Allowances auctioned in the EU?
Auctioning of emission allowances in the EU is currently conducted by a common auction platform for 25 Member States and by a small number of opt-out platforms. Regulation (EU) No 1031/2010 determines the volumes of allowances to be auctioned each year.
What is large-auctioning in the EU ETS?
Consequently, large-auctioning is a dominant feature of the European Union Emissions Trading Scheme (EU ETS) in its third phase (2013-2020) and the main method of distributing EU ETS allowances by the EU Member States.
How is the auction time profile decided in the EU?
The stance of the European Commission was that the auction time profile was not decided in the primary legislation, i.e. the ETS Directive itself, but rather determined in the implementing legislation, i.e. the Auctioning Regulation, thus changes to the auction time profile were therefore made possible in the ETS Directive.