Auctions of CO2 allowances

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Auctions of CO2 allowances

Buying allowances in the auctions versus on the secondary market - pros and cons

Monday, 12 September 2011 05:46

There is little chance for the auctioning system as of 2013 under the current arrangements of the Regulation No 1031/2010 to pose any competition for the secondary market as regards the reliability of supply and the hedging needs. The operators which expect to cover their emissions in the third settlement period only with allowances bought in the auction should in advance be aware of certain legal circumstances that could complicate their projections.

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Banking of CO2 allowances operates onwards not backwards

Friday, 19 August 2011 11:26
The draft Commission Regulation amending Regulation (EU) No 1031/2010 determines the volumes of greenhouse gas emission allowances to be auctioned prior to 2013. But it should be remembered that EUAs sold in early auctions starting in 2012 will be barred from compliance use in the second trading period. Add your comment
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Californian v European model for emission allowances auctions – which of them is better suited to the market

Wednesday, 02 March 2011 22:49
Auctions are the pivotal element of the primary market for emissions allowances in the Californian cap-and-trade as well as EUETS. The Auctioning Regulation present in the EUETS (No 1031/2010 of 12 November 2010) seems generally more detailed than the Regulation Order proposed by Air Resources Board. Contrary to the ARB proposal it specifies for instance such details as consequences of late or non-payment etc. There are many similarities in the auction design and also some differences of technical nature. But several economical and legal assumptions and measures are original in the Californian model for auctions. Add your comment
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Where to buy emission allowances: in the auction or on the secondary market

Friday, 21 January 2011 13:12
Assuming that a market participant is eligible for bidding in the auction (directly or indirectly), he will be – when the auctioning system begins operating in full - in the face of making economic decision: to participate in the auction or to buy allowances on the secondary market. The question may arise - considering only organisational and legal circumstances – which of these two markets (primary or secondary) offer – in principle - more advantageous conditions for bidders. Add your comment
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The eligibility to apply for admission to bid in the auction pursuant to the Auctioning Regulation

Thursday, 13 January 2011 22:30

Is there a risk that hypothetical power and fuel suppliers from one Member State will be entitled to bid directly in the auction and the same from another Member State won’t?

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