Date for next emissions trading system auction announced
The UK Government intends to hold its second auction in Phase II of the European Union's Emissions Trading System on 24th March 2009
The EU ETS sets a cap on the total emissions from the main industrial sectors across Europe, covering more than 10,000 installations in the energy and industrial sectors. Each installation has to purchase allowances for every tonne of carbon they emit.
Auctioning these allowances marks an important step forward in developing a system where market forces create financial incentives for major carbon emitters to reduce their emissions. This will help stimulate the development of green technology and British business can begin to realise the benefits of being leaders of the low carbon revolution. The number of allowances to be auctioned will be announced at least one month before the date of the auction. In 2009 the UK plans to auction a total of 25 million allowances.
Participants in the auction can place bids through intermediaries, called Primary Participants The application window for organisations to become Primary Participants has also re-opened and is expected to remain open for the remainder of Phase II.
Application forms to become a Primary Participant and any supporting documentation should be received by The Department of Energy and Climate Change at least one calendar month before any auction date for an institution to be permitted to participate directly in that auction (i.e. by 24 February 2009 for Primary Participant status to be effective for the 24 March auction). This allows sufficient time for the Department to process and assess the application and still leave a period of time for the Primary Participant to establish relationships with indirect bidders.