On Tuesday 17 October, the European Commission announced the adoption of a new delegated regulation on auctioning in the European Emissions Trading Scheme (ETS) as part of the ‘Fit for 55’ legislative package and the ‘REPowerEU’ plan.
Following a thorough examination of the draft legislation on the ‘Have Your Say’ platform, which stakeholders were able to comment on for four weeks, the Commission has unveiled this new framework. It aims to specify the technical aspects that are essential to ensure that ETS auctions run smoothly, in particular the format, timetable, frequency and eligibility of bidders.
This revised regulation incorporates changes linked to the application of the ETS (see EUROPE 13164/13) to the maritime sector and the creation of a separate system for buildings, road transport and other sectors. Particular attention has also been paid to aviation, with adjustments to the auctioning of volumes from the aeronautics sector.
Another development concerns changes to the auctioning of allowances for the ‘Innovation Fund’, the ‘Recovery and Resilience Facility’ and the ‘Climate Action Social Facility’. In addition, there have been improvements in terms of market monitoring and transparency, as well as changes linked to the voluntary cancellation of quotas by Member States.
The delegated act is now awaiting approval by the European Parliament and the EU Council. If no objections are raised within two months, the regulation will enter into force following its publication in the Official Journal of the EU, replacing the current regulation 1031/2010, which has been in force since November 2010.
To see the regulation: https://aeur.eu/f/95a (Original version in French by Nithya Paquiry)