UK’s free Phase 3 EUA handout reduced by 0.5%

Published 23:46 on April 30, 2015  /  Last updated at 23:52 on April 30, 2015  /  EMEA, EU ETS  /  No Comments

The UK published an updated National Allocation Table on Thursday, showing that the number of free EUAs it is to give to industry between 2013 and 2020 has been reduced by 0.48% or 2.4 million.

The UK published an updated National Allocation Table on Thursday, showing that the number of free EUAs it is to give to industry between 2013 and 2020 has been reduced by 0.48% or 2.4 million.

According to the latest NAT published on the website of the Department of Energy and Climate Change, the government will hand out 488.5 million free allowances, compared to 490.8 million reported last June, to help industrial sectors at risk of competition from countries without similar carbon costs.

EU member states are required to update their NATs annually to reflect any changes resulting from partial plant closures, significant capacity reductions, or new entrants to the EU ETS.

Changes to free allocation levels, which can also be due to the application of the bloc’s cross-sectoral correction factor, must be verified and signed off by the European Commission.

The cross-sectoral correction factor reduced the overall number of free allowances to be handed out during this third trading phase of the EU ETS by 5.73% in 2013 and rising to 17.56% in 2020, in order to keep the total emissions under the scheme’s cap.

Below is a breakdown of the UK’s latest NAT published today, comparing it to the list published last June.

Jun-14 Apr-15 %Chg

2013

66,437,039 67,073,777 0.96%

2014

64,777,298 64,987,532 0.32%

2015

63,400,058 62,481,460 -1.45%

2016

62,019,475 61,590,053 -0.69%

2017

60,634,806 59,787,295 -1.40%

2018

59,247,163 58,985,132 -0.44%

2019

57,853,171 57,181,750 -1.16%

2020

56,463,708 56,382,692 -0.14%

Total

490,832,718 488,469,691 -0.48%

 

By Mike Szabo – mike@carbon-pulse.com