Commission announces €300M for carbon allowance distribution

The Commission has announced that an expected proposal on the distribution of allowances to be auctioned under the EU Emission Trading System (EU ETSⁱ) will result in €300 million of carbon allowances being distributed. The selection and award criteria for these allowances will likely be finalised by the end of 2009, while the selection of projects will take place in 2011. Proposals for projects for carbon capture and storage (CCS) should be submitted to the Commission by the 15 of July.

A Stakeholder Consultation on the scheme was launched earlier this month, seeking views on the timing, size, frequency of auctions, auction design and regulatory aspects relating to issues such as pre-registration of participants, collateral, payment and delivery, information disclosure and monitoring. The consultation also addresses the question of the number of auction processes that could be used and the appropriate degree of coordination between Member States.

The expected proposal will establish measures on the timing, administration and other aspects of the EU ETS auctioning so that it is conducted in a transparent manner. It also aims to ensure that operators, and in particular small and medium size enterprises covered by the ETS, have full access to auctions. The Commission says that free allowances may be given to installations in sectors exposed to the risk of carbon leakage. The deadline for comments is 3 August.

The questionnaire can be found here:

https://quickplace.icfconsulting.com/QuickPlace/eu-ets-auctions-consultation/Main.nsf/h_Toc/4df38292d748069d0525670800167212/?OpenDocument