A European Commission regulation amending the EU Emissions Trading Regulation is on the table in Parliament and the Council of the EU to ensure that auctions operate properly during the fourth phase of the Emissions Trading Scheme (ETS), from 2021 to 2030.
This Regulation, adopted by delegated act on 28 August, will make the first general amendment to the Regulation on the auctioning of allowances (Commission Regulation 1031/2010) to take into account the revision of the ETS adopted in 2018, which provides in particular for the use of the common auction platform to convert allowances dedicated to the Innovation and Modernisation Fund into money.
It will introduce technical amendments to take into account the fact that, since the beginning of 2018, emission allowances have been classified as financial instruments under the Markets in Financial Instruments Directive (2014/65/EU).
Although the auction process is considered to be working well and the overall architecture of the auction process remains unchanged, some rules have been improved and simplified on the basis of the experience gained during Phase 3 of the ETS (2013-2020).
The text also clarifies the provisions on the submission of auction schedules and the reporting obligations of auction platforms.
If Parliament and the Council of the EU do not raise any objections within two months, the Commission Regulation may enter into force. (Original version in French by Aminata Niang)