Carbon auctioning to begin in November
Carbon allowances for Phase II of the EU Emission Trading Scheme are set to be issued in early November ahead of the UK's first auction of allowances, Government has confirmed.
Ministers said the allowances would be issued once European and global registry systems – similar to online banking systems – have been linked together.
Work to link the two systems, run by the EU and the UN, began on Monday and is expected to take at least ten days.
“Once this work has been completed the UK registry will remain off-line for a number of additional days while the process of allocating 2008 allowances to operator holding accounts takes place,” Defra said in a statement.
The UK’s registry is set to be switched back on early next month in time for the auction, which is scheduled for November 19.
The number of allowances available at the auction is expected to be announced in the coming days.
Up to 7% of the UK’s allowance for Phase II, which runs from 2008 to 2012, can be available for auctioning – equivalent to about 85m allowances over the course of the four years.
The first auction, which will be conducted by Defra, will involve competitive bidding. Government aims to set up a non-competitive bidding facility early next year.
But companies and organisations have been reminded that they only have until the end of this month to register to take part in next month’s auction.
More information on how the allowances will be allocated in the UK can be found here.