UK to sell 19m carbon allowances on new auction platform
The UK government will sell 19m carbon allowances this November and December, and reveal which company will run its new auction platform on Monday.
The allowance volume will comprise both EU allowances (EUAs) for 2013 and EU aviation allowances (EUAAs) for 2012.
The sale will mark the first UK auction of EUAs for Phase III of the EU Emissions Trading System (ETS), and will be held on the country's new platform. The UK, along with Germany and Poland, will opt out of participating in the EU-wide auction platform for Phase III of the EU ETS, which kicks off next year and runs up to 2020.
Before the UK's new platform can operate, however, it must be approved by European Commission regulators.
EU member states will auction 120m allowances for 2013 to help utilities hedge their forward power sales, of which the UK is entitled to 10%. The country will also be allocated 7m of a total of 32m aviation permits, due to be sold by the end of 2012. KB
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