Member States to have opt-out from single EU platform for CO2 auctioning

Member States will have the opportunity to opt out of a single EU platform for auctioning CO2 allowances under the EU’s Emission Trading System (ETSⁱ) from 2013, according to a proposal for a Regulation adopted by the European Commission this month.

The draft Regulations says that any Member State not participating in the joint action would have to inform the Commission of its decision to appoint its own auction platform within three months of the Regulation’s entry into force.

The European Parliament has now a three-month scrutiny period to review the proposal. Member states must approve the plans for the regulation to become law, in a vote expected within the next three months.

Four major Member States – the UK, Germany, Poland and Spain – have consistently opposed the formation a single platform, which has helped to delay the adoption of the draft Regulation. There have also been disagreements within the European Commission over the proposal, which was originally scheduled for adoption by June 2010 (see March 2010 Eurobrief). DG Enterprise, for example, felt that DG Environment, which led the work developing the new auctioning rules, has neglected the views of other Commission services and has complained of insufficient consultation.

The Draft Regulation can be found here:
http://ec.europa.eu/environment/climat/emission/pdf/proposed_auctioning_reg.pdf