04 June 2009 12:40 [Source: ICIS news]
BRUSSELS (ICIS news)--The European Commission has launched a public consultation on the rules to govern the EU Emissions Trading System (ETS) after 2012, the EU executive body said on Thursday.
The consultation will focus on how best to manage the auctioning of emission allowances during the third phase of the EU ETS.
From 2013, at least half of the allowances under the EU ETS will be auctioned instead of being allocated to businesses free of charge.
Until now, only about 4% of the total quantity of allowances has been purchased by industry.
The consultation will cover all aspects of auctioning, in particular the timing, size and frequency of auction, as well as auction design, said the Commission.
It will also examine regulatory aspects relating to issues such as the pre-registration of participants, collateral, payment and delivery, information disclosure and monitoring.
The number of auction processes that could be used and the appropriate degree of coordination between member states will also be investigated.
The European Chemical Industry Council (Cefic) has made it clear it does not support increased auctioning as an effective way to tackle climate change and has claimed it will “place a unilateral and costly burden on the European chemical industry”.
Cefic wants to see industry subject to a benchmarking process – whereby “world-class industry performers who develop new low carbon processes… receive free allocations” – instead of the auctioning of emissions permits.
The consultation will run for until 3 August.
The Commission has until 30 June 2010 to adopt a regulation on auctioning.
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