OREANDA-NEWS. September 26, 2012. In cooperation with KfW Bankengruppe, the German Emissions Trading Office (DEHSt) has published its report with evaluations and background information from five years of sales and auctions of emission allowances.

The European emissions trading system is facing extensive changes: In the third trading period power plant operators will no longer receive free allocations; emission-intensive industries will continue to receive only part of their emission allowances for free. To cover their CO2 emissions the enterprises must purchase allowances on the market. This means that starting 2013 throughout Europe about half of the available emissions allowances will be auctioned, thereby significantly expanding the existing auction size.

Are plant operators, trading institutions and the authorities adequately prepared for this change in the third trading period? Is the auction really the effective means to bring about more efficiency in climate protection? The now published report provides insight into the legal requirements and practical considerations for the implementation of the auctions from 2008 to 2012.