On 21 November, the Commission published a “non-paper”, which proposes options to change the schedule of auctions under the EU’s Emissions Trading Scheme (“ETS”). The reason for changing the timetable is to give the institutions time to reach an agreement on the amendment of the EU ETS Directive to enable the “back-loading” (withdrawal) of 900 million allowances from the ETS system. Back-loading was supposed to begin this year, but has been delayed. The non- paper suggests the following two options:
- Option 1: Reduce the volume of EU emissions allowances by 400 million in 2014, followed by a further reduction of 500 million in 2015.
- Option 2: Reduce the volume of EU emissions allowances by 300 million in 2015.
The two options will be considered by the EU’s climate change committee on 11 December.
The non-paper is available here: http://ec.europa.eu/clima/news/docs/2013112101_en.pdf