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Warsaw Stock Exchange to hold phase II carbon auction

13 Mar 2013 12:31:14 | edcm

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News that the Warsaw Stock Exchange will host a small auction of Polish phase II emissions allowances has been taken as a sign the platform is becoming the front-runner to host the larger phase III sales, according to a source from brokerage Vertis Environmental Finance.

This would be welcome news, as the stock exchange has a good track record of setting up quick, accurate sales, the source added.

The Warsaw Stock Exchange will sell around 200,000 carbon allowances left over from Poland's new entrants reserve and initially earmarked for so-called joint implementation projects cutting emissions in the country.

A spokesman for the Warsaw Stock Exchange did not comment directly on whether it would hold the larger phase III auctions, but said: "The WSE Group has the necessary expertise and organisational capabilities to implement other projects of this kind in the future."

The WSE Group owns both the Warsaw Stock Ecxhange and the Polish Power Exchange since an acquisition in 2012.

The small phase II auction is set to take place on 2 April, according to emissions management authority KOBiZE. Companies with caps under the EU emissions trading system are allowed to take part, and could participate in a bid to buy below market prices, although the small volume is likely to limit interest.

"The news is interesting mainly because it is a signal that the stock exchange rather than the power exchanges could host the phase III auctions," the source from Vertis said.

Poland has chosen to opt out of the pan-European platform auctioning off phase III supply to the power sector, and will instead set up its own venue. No platform host has been chosen yet, three months into phase III, with Poland so far selling its carbon volumes on the European Energy Exchange along with most other EU states (see EDCM 17 September 2012). Isabel Save

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