Next emissions trading system auction date announced
January 26, 2009
The UK Government intends to hold its second auction in Phase II of the European Union's Emissions Trading System (EU ETS) on 24 March. The bidding window will open at 8am and close at 10am on that day.
The number of allowances to be auctioned will be announced at least one month in advance. During 2009, the UK plans to auction a total of 25 million allowances.
The EU ETS sets a cap on the total emissions from the main industrial sectors across Europe, covering more than 10,000 installations in the energy and industrial sectors. Each installation has to purchase allowances for every tonne of carbon they emit.
The Government said that auctioning these allowances marks an important step forward in developing a system where market forces create financial incentives for major carbon emitters to reduce their emissions.
It will help stimulate the development of green technology and British business can begin to realise the benefits of being leaders of the low carbon revolution.
Participants in the auction can place bids through intermediaries, called Primary Participants. Applications are being accepted from organisations wishing to become Primary Participants and probably will be for the remainder of Phase II.
Application forms and any supporting documentation should be received by the Department of Energy and Climate Change (DECC) at least one calendar month before any auction date for an institution to be permitted to participate directly in that auction.
This means the deadline for the March auction is 24 February.
The Treasury has appointed the DECC to conduct the auctions and the DECC has appointed the UK Debt Management Office to act as the official agent running EU ETS auctions.
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