Głowacki Law Firm

Emissions trading
EUAs as a financial instrument under MiFID - not yet
Monday, 18 April 2011 07:00


The Discussion paper in view of a European Climate Change Programme (ECCP) stakeholder meeting on carbon market oversight organised by the Commission services Brussels, 4th May 2011 considers the implications of classifying emission allowances and other EU ETS compliance units as financial instruments under MiFID. It seems, however, not probable taking into account arguments of many participants of various market sectors and branches in their responses to the MiFID review consultation.


Last Updated on Friday, 02 November 2012 14:01
The volumes of early auctions specified but the method and detailed timelines for monetisation of phase 3 allowances from NER 300 still uncertain
Saturday, 19 March 2011 12:13

According to the European Investment Bank all sales of CO2 allowances from the new entrant reserve (NER300) will be of a forward nature for settlement in December 2013 at the earliest. The options for the monetisation method are: auctions, on an exchange and over the counter.

It follows from the Cooperation Agreement between European Commission and the European Investment Bank on the implementation of Commission Decision C(2010) 7499 that the main elements of the monetisation method including the defined monetisation period and the expected total volume of monetisation should be published on the EIB's website but it has not been done yet.

This publication is impatiently awaited because there are some ambiguities as regards important for EUETS participants features of monetisation.

ICE Futures Europe Circular 11/038 of 10 March 2011 – safeguarding the position of the Exchange but what about the traders?
Monday, 14 March 2011 07:30


Does the ICE Futures Europe Circular 11/038 of 10 March 2011 mean that the trader that was delivered by the Clearing House and the Exchange “prohibited” emission allowances has no legal remedies against the seller? Such a rule would be difficult to accept from the position of legal interests of the buyer as a party to the agreement. It seems that in the said document there are also other points that should be carefully considered.


Delivery delay mechanism in EU ETS registries – something like the RGGI design?
Thursday, 10 March 2011 11:23

Under Regional Greenhouse Gas Initiative Model Rules the Regulatory Agency of the RGGI (or its agent) records a CO2 allowance transfer by moving each CO2 allowance from the transferor account to the transferee account within 5 business days of receiving a CO2 allowance transfer.

Is this a right remedy for the EUETS recent weaknesses?

Enforcement of the surrender obligation and companies affiliations – something missing?
Friday, 04 March 2011 16:18


It should be considered that the responsibility for the timely surrendering of emission allowances be accounted for at a level of a group of affiliated companies.


The Cost Containment Mechanisms in the California Cap-and-Trade Program – why absent in the EUETS?
Thursday, 17 February 2011 15:40


In the European cap-and-trade the cap is established on the volume of allowances and, unfortunately, not on the price. But as the experience shows there are interesting concepts, how to mitigate not only the impact of climate change, but also the price risks inherent in the scheme. Direct quarterly sales of allowances from the Allowance Price Containment Reserve and the fixed Auction Reserve Price cause (providing that the Reserve won’t be prematurely exhausted) that in the California cap-and-trade the regulatory-fixed price range from 10$ to 75$ per metric ton of CO2 can be specified in the perspective 2012 – 2020 (with appropriate modifications in each year of the period).


Last Updated on Saturday, 04 August 2012 14:30
The publicness of the data held in the CO2 allowances registries – pivotal principles decided by the recent judgment
Tuesday, 01 February 2011 22:11

Are the individual characteristics of transactions in emission allowances, which are entered into registries, publicly available? If yes, under what conditions and to what extent? What is the relation between the Registry Regulation and the Directive 2003/4/EC of the European Parliament and of the Council of 28 January 2003 on public access to environmental information and repealing Council Directive 90/313/EEC (OJ 2003 L 41, p. 26)? Does the Registry Regulation provide for the specific rules in this field or the said Directive is nevertheless binding as regards requests for making publicly available trading data (dates, volumes, parties to the transactions, prices etc.)? All these, vital for young emission market, questions are decided in the recent judgment. But we go a little further and make some classifications as regards the subject-matter.


Legal complications with the recovery of the stolen allowances
Sunday, 30 January 2011 19:12

Imagine hypothetically that the stolen allowances were entered into circulation and were subject to the transactions for the sale (or other disposal) of allowances between the parties in different Member States.


Extending regulatory safeguards of the MAD Directive to the spot markets in electricity and emission allowances – will this change so much?
Monday, 17 January 2011 21:46

Recently announced „Proposal for a Regulation of the European Parliament and of the Council on energy market integrity and transparency {SEC(2010) 1510} {SEC(2010) 1511}” subjects wholesale energy products traded on the spot market to the safeguards currently present mainly on the financial market. The issue obviously regards inter alia the prohibitions on insider dealing and market manipulation.


SO2 and NOx trading – the new interesting instance of the national scheme
Friday, 22 October 2010 08:58


The draft of the Law on the system of balancing and settlement of  sulphur dioxides’ (SO2) and nitrous oxides (NOx) emissions from a large combustion plants scheduled to enter into force as from 1 January 2011 introduces in Poland a trading scheme that can be classified as cap-and-trade system rather than baseline-and-credit.


Article 11a(9) of the Directive 2003/87/EC – a headache for compliance buyers
Sunday, 26 September 2010 20:05

Article 11a(9) of the Directive 2003/87/EC is these days “hot topic” among emission traders and compliance buyers of CERs.


The issue is really worth considering - the very wording of the said provision sounds mysterious, may potentially be capacious and constitute a legal basis for many interesting structures. But nobody likes to be surprised – especially when big money is at stake.


Daily Futures Contracts listed on ECX – assessment under MIFID and Regulation No 1287/2006
Friday, 11 June 2010 09:40

EUA’s and CER’s Daily Futures Contracts traded on ECX are physically deliverable within two trading days - are they spot contracts or financial instruments triggering regulatory framework of MIFID?


What’s new with standards for accounting for emission allowances
Wednesday, 26 May 2010 20:47

There are very few decisions of the IASB and FASB on the accounting standards for emissions allowances so far and even those already adopted are tentative only.

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Cap-and-Trade Schemes

Flexible Mechanisms


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