NIMs not to be finalised before August – Dutch emissions body
The final confirmation of phase III free allocation of EU allowances (EUAs) to industrial and some power companies will not take place before August, the Dutch emissions authority (NEA) said in a bulletin on Monday.
"The European Commission has almost concluded all discussions with member states, but cannot publish the correction factor any sooner than August," the NEA said.
The European Commission did not reply to ICIS' request for confirmation and comment on the issue at the time of going to press.
The final figures for National Implementation Measures (NIMs) - a preliminary calculation submitted by each EU country of free allocation to domestic installations covered by the EU Emissions Trading System (ETS) - were originally due by February (see EDCM 28 January 2012).
The uncertainty surrounding free allocation has led industrials - the potential sellers in the EU ETS because of their significant sectoral length - to hold onto EUA surpluses until the EU confirms the NIMs figures, analysts say.
This is because the Commission could apply a cross-sectoral correction factor to the preliminary plans if the sum of the proposed free allocation exceeds the number of free EUAs available under the EU's cap.
The Commission has not added up final numbers yet because it is still in discussion with individual member states over their proposed allocation, the NEA said. In the Climate Change Committee's meeting with all EU countries the Commission informed them that the discussions are almost completed, it added. Once they are concluded, the different directorate-generals of the Commission will still have to approve the agreed correction factor, the NEA said.
Power companies will not receive any free EUAs in phase III, save for some from countries covered by derogation such as Poland. Silvia Molteni
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