European Commission Publishes Commission Delegated Regulation Amending Auctioning Allowances Rules
11/08/2019A Commission Delegated Regulation amending the EU Auctioning Regulation has been published in the Official Journal of the European Union. The Delegated Regulation will apply directly in all EU Member States from November 28, 2019. The EU Auctioning Regulation provides for EU emission allowances to be auctioned and specifies key aspects of the auctions, including their design, timing and eligibility requirements. The changes made by the Delegated Regulation include:
- Amendments to the annual auction allowance volumes provisions, including the methodology for determining when an auction platform should cancel an auction and procedures for redistributing auction allowances where an auction is cancelled. These changes have been made to align the EU Auctioning Regulation with recent amendments made to the EU Emissions Trading System Directive;
- The appointment of the European Investment Bank as the auctioneer of allowance auctions that are used to finance the Modernization Fund (established under the EU ETS Directive to improve energy efficiency and modernize European energy systems) and the Innovation Fund (which supports investments in innovative technologies);
- A notification process for the cancellation of allowances by Member States where electricity generation capacity in a given territory is closed; and
- The imposition of transaction reporting obligations upon auction platforms, requiring them to report on auction transactions in line with the obligations set out in the European Market Infrastructure Regulation. The purpose of this amendment is to contribute to the drive for improved surveillance of market abuse in the EU.
View the Commission Delegated Regulation.
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