Auctioning of carbon allowances
According to the legislative proposal published by the European Commission on April 6th 2010, Member States will be allowed to opt out of a single EU platform for the auctioning of carbon allowances under the EU emissions trading scheme (ETS) from 2013. The proposal is considered to be disappointing by several stakeholders, including WWF and the International Emissions Trading Association (IETA) but optimistic to four large Member States e.g. the UK, Germany, Poland and Spain. Despites the results of the impact assessment on the regulation which showed that a single platform would be the most efficient and transparent way to auction allowances, Member States will now be allowed to set their own platform. Since the European Parliament is entitled to a three-month period to review the proposals of the Member States, the deadline of June for a final EU adoption which was set in the 2009 is already out of reach. This means a prolonged period of uncertainty for businesses and a prolonged exposure to carbon.