Croatia hopes to sell 5m EUAs in 2013; Norway shifts to 2014
An extra 4.9m spot EU allowances (EUAs) might be auctioned on platform European Energy Exchange (EEX) before the end of the year as Croatia still hopes to start selling its volume in 2013 after joining the European Union in July, its environment ministry told ICIS on Thursday.
Norway, Iceland and Liechtenstein will not sell their 2013 share this year, cumulatively totalling 7.9m EUAs, representatives told ICIS this week. The 7.9m EUAs will now be added to the 2014 pile.
Norway and Iceland, members of the European Free Trade Association (EFTA) and party to the European Economic Area (EEA), along with Croatia are planning to auction their allowances on the transitional common auction platform hosted by Germany-based EEX, on which most EU countries currently sell their EUAs.
Croatia still believes it will start to sell its 4.9m quota in 2013. The country is “in the last phase in finishing procedural activities for becoming an EEX member, and those should not take much time to be completed on both sides,” Visnja Grgasovic, head of service for climate change at the Croatian environment ministry, told ICIS on Thursday.
EU rules say that the volume to be auctioned for Croatia is to be spread evenly over the remaining auctions of the year, in case the country starts auctioning in 2013.
The 4.9m EUAs represent only 0.6% of the overall 821m scheduled to be auctioned in 2013.
The 2014 auction volume is already boosted by 66.3m EUAs as a result of the cut applied by the European Commission to countries’ requests for free allocations to industry ( see EDCM 6 September 2013 ).
Norway assumed in its 2014 fiscal budget that both the 2013 volume and the 2014 volume will be auctioned in 2014, with the total amount to be auctioned in 2014 estimated at 15.9m EUAs – including the 7.543m carried over from 2013, a spokesman for the environment ministry told ICIS. “The auctioning has been delayed due to some unresolved EEA legal issues,” he added, but declined to elaborate further.
Gloey Finnsdottir, head of division at the department of environment and spatial planning of the Icelandic ministry for the environment, said: “It is very unlikely that everything will be ready for auctioning our allowances this year. But hopefully we will participate in the auctions in 2014.” The country’s 2013 volume totals 378,500 EUAs.
Liechtenstein said the legal framework is “quite complex and time-consuming”, and it will not be able to auction its 8,477 allowances in 2013. It said it “might consider” EEX common platform.
According to the last auction report from the European Commission, the arrangements for the use of the platform by the three countries are currently under discussion. “It is not yet clear when the transitional common auction platform will start to auction allowances for the EEA-EFTA states,” the commission said in the document earlier this month.
An EFTA spokesman said the auctioning will start “once the discussions have been concluded and the practical arrangements are in place”. Silvia Molteni
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