EU unveils carbon back-loading timetable options
The EU could withhold 400 million EU allowances (EUAs) as early as next year from auctions, according to a document submitted by the European Commission to the Climate Change Committee (CCC).
The paper was published late on Thursday as part of preparations for swift implementation, should the proposal to back-load 900m EUAs in phase III be signed off.
It outlines two options: firstly, to remove 400m EUAs in 2014 and 500m in 2015, putting these back as 300m in 2019 and 600m in 2020.
Or, secondly, to remove 400m in 2014, 300m in 2015 and 200m in 2016, which would be returned as 300m in 2019 and 600m in 2020.
Both options would leave the auction volumes in 2017 and 2018 unchanged.
The news is bullish, but came after the market had closed on Thursday.
The back-loading text was signed off by the Committee of Permanent Representatives early on Wednesday and will now move to plenary in December. After plenary, the proposal would still need approval by either the Council of the European Union on 13 December or the European Council on 18-20 December ( see EDCM 20 November 2013 ).
The CCC then needs to decide the appropriate volumes of EU allowances to back-load and over what time-scales – a decision that requires three-month scrutiny. Marie-Louise du Bois
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