EU member states will auction a total 733.77 million EUAs next year, some 16% or roughly 100 million more allowances than were put up for sale this year, according to the 2016 auction calendar published by the European Commission and host exchanges late on Friday.
The increase is due to fewer EUAs being withheld from sale under the bloc’s Backloading programme, which will finish withdrawing its target of 900 million units from the market at the end of 2016. Those allowances are to be deposited in the EU’s MSR once it launches later this decade.
Next year’s auction schedule is similar to those in previous years, with a group of 25 EU member states selling a total 448.7 million spot allowances in auctions held weekly on Mondays, Tuesdays and Thursdays on German energy bourse EEX.
Germany is to auction a total 160.77 million EUAs on EEX through its weekly Friday sales, while the UK will hold its sales on London-based ICE every second Wednesday, selling a total 83.75 million units.
Poland will again hold its sales on EEX, selling a total 40.55 million EUAs across monthly auctions on Wednesdays starting Feb. 3. The country is expected to next year hold a tender to select its own auction platform to host future allowance sales.
The auction volumes also include some 8.45 million units that went unallocated to power generators in Eastern European countries that are eligible under the ETS Directive’s article 10c ‘derogation’ programme.
“In addition, 26,031,000 general allowances are to be auctioned by the EEA-EFTA states for the years 2013 to 2016. The modalities for auctioning these allowances are still in discussion [with Norway, Iceland and Liechtenstein],” the Commission said in a notice published on its website.
All of 2016’s EUA auctions are to be held in the morning, with no afternoon sales as has been seen in previous years.
AVIATION ALLOWANCES
The 28-nation EU will also auction off 5,997,500 EUAAs next year, with the group of 25 member states holding bi-monthly sales on the Wednesdays that don’t feature UK EUA auctions.
Poland, Germany, and the UK will hold a single EUAA auction each, in February, April, and October, respectively.
“In addition, 1,118,000 aviation allowances are to be auctioned by the EEA-EFTA states for the years 2012 to 2016,” the Commission said, adding that those negotiations were also ongoing.
By Mike Szabo – mike@carbon-pulse.com
