Proposals regarding EU’s Emissions Trading System backed

The European Commission’s proposals for rules governing the auctioning of carbon allowances under the EU's emission trading scheme (ETS) from 2013 have been backed by the Climate Change Committee. The proposal will progressively replace free allocation as the current main method for allocating ETS allowances with auctioning. Industries have shows support for the proposal, particularly power companies since they require clarity over auctioning costs in order to buy carbon allowances in advance. Other proposals concerning the EU ETS include a solid common auction platform, a simple auction format, a predictable auction calendar, access for small emitters and mitigating risk of market abuse. The draft regulation will be submitted to the European Parliament and the Council for a three month scrutiny period.