Market and product
EC says CO2 allowance backloading to start mid-March
"The Commission welcomes the European Parliament's decision to shorten the scrutiny period for and to endorse the draft amendment of the EU ETS Auctioning Regulation on backloading," the EC said in a statement.
"The final step is for the Council to take a decision on endorsing the proposal. This is expected to take place on February 24, 2014," the EC said.
"The Commission has already started preparatory work with the Member States and auction platforms, which are responsible for revising the 2014 auction calendars," it said.
"The auction platforms will publish the revised auction calendars in advance of the start of backloading. At this stage of the preparations, the Commission expects that backloading will be implemented as of mid-March," it said.
Further updates on backloading will be announced through the EC's website, it said, and by the ICE Futures Europe exchange in London and the Leipzig, Germany-based European Energy Exchange -- the two main European auction platforms for carbon allowances.
An ICE spokeswoman said the exchange -- which hosts carbon auctions on behalf of the UK government -- would consult with the UK authorities and announce any change to its primary auction calendar well before the changes go live.
"Prior to making any amendments to the ICE auction calendar or volumes, ICE Futures Europe would consult with the Department of Energy and Climate Change and thereafter submit any changes to its auction calendar to the Commission," the spokeswoman said.
"A market circular would be issued to market participants providing notice of any amendment," she said in emailed comments.
Backloading seeks to curb a long-running supply glut that pushed the price as low as Eur2.46/mt in April 2013, down from as high as Eur30/mt in 2008.
If backloading starts as planned before the end of March, the EC will remove 400 million EUAs from this year's supply, followed by 300 million in 2015 and 200 million in 2016 -- with all 900 million to be returned to market via auctions in 2019 and 2020.
