Poland May Seek to Start National CO2 Platform in 2013
Poland may apply for a national carbon-auctioning platform in the next phase of the European Union’s emissions-trading system, the government said today.
The EU, which has given away the majority of allowances since starting its cap-and-trade program in 2005, will require most emitters to purchase their allotments starting in 2013. While the EU regulator favors a single auctioning platform, saying a centralized approach offers best “value for money,” it agreed last year to give member states the option of running their own national auctions.
The U.K. and Germany, which have the biggest emission caps and have started selling their own CO2 permits, pushed for individual auctions when the regulation was discussed last year. Poland and Spain also backed the option, which was allowed by other EU states as a way to ensure competition.
“The environment minister has recommended the choice of a national platform for the sale of greenhouse gas allowances that Poland is eligible for under the EU emissions trading system in 2013-2020,” the Polish government said in a statement today.
The EU will auction about 60 percent of all CO2 permits in 2013, according to estimates by the European Commission, the bloc’s regulator. That proportion of sales versus free permits will rise in subsequent years as part of the bloc’s strategy to use the world’s biggest cap-and-trade program to cut emissions.
New Entrants
The cap for carbon-dioxide discharges for 2013 has been set at 2.04 billion tons, including aluminum and chemical makers, which join the program in its third phase running through 2020. That would be worth around 30 billion euros at today’s prices. Airlines become part of the program next year.
The EU agreed that auctioning platforms should be established through an “open, transparent and competitive selection procedure.” Every application for individual auctions will be subject to approval by other member countries.
The allocation of free allowances in the third phase of the EU cap-and-trade will be based on the so-called carbon-intensity benchmarks approved by member states last year. The method was designed to give the most efficient installations in each industry the most free allowances, while those that emit more than the benchmarks will need to buy permits or reduce emissions.
The EU, which has given away the majority of allowances since starting its cap-and-trade program in 2005, will require most emitters to purchase their allotments starting in 2013. While the EU regulator favors a single auctioning platform, saying a centralized approach offers best “value for money,” it agreed last year to give member states the option of running their own national auctions.
The U.K. and Germany, which have the biggest emission caps and have started selling their own CO2 permits, pushed for individual auctions when the regulation was discussed last year. Poland and Spain also backed the option, which was allowed by other EU states as a way to ensure competition.
“The environment minister has recommended the choice of a national platform for the sale of greenhouse gas allowances that Poland is eligible for under the EU emissions trading system in 2013-2020,” the Polish government said in a statement today.
The EU will auction about 60 percent of all CO2 permits in 2013, according to estimates by the European Commission, the bloc’s regulator. That proportion of sales versus free permits will rise in subsequent years as part of the bloc’s strategy to use the world’s biggest cap-and-trade program to cut emissions.
New Entrants
The cap for carbon-dioxide discharges for 2013 has been set at 2.04 billion tons, including aluminum and chemical makers, which join the program in its third phase running through 2020. That would be worth around 30 billion euros at today’s prices. Airlines become part of the program next year.
The EU agreed that auctioning platforms should be established through an “open, transparent and competitive selection procedure.” Every application for individual auctions will be subject to approval by other member countries.
The allocation of free allowances in the third phase of the EU cap-and-trade will be based on the so-called carbon-intensity benchmarks approved by member states last year. The method was designed to give the most efficient installations in each industry the most free allowances, while those that emit more than the benchmarks will need to buy permits or reduce emissions.
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