The European Commission announced on Tuesday (17 October) that it has adopted a delegated regulation establishing a new Auctioning Regulation, following a revision of the Emissions Trading System (ETS) Directive in the context of the Fit for 55 legislative package and REPowerEU plan.
Following the publication of a draft regulation for a four-week stakeholder feedback period, the Commission has now adopted a new Auctioning Regulation.
“The Auctioning Regulation continues to set out the technical elements necessary for the good organisation of EU ETS auctions, such as the format, timing, frequency of auctions, rules about the auction calendars, eligibility of bidders to participate in auctions, rules on the selection and responsibilities of auction platforms, as well as on market oversight and transparency,” said the EU’s executive body in a press release.
What changes are ahead?
The new regulation will see changes related to the extension of the scope of the Emissions Trading System (ETS) to cover maritime, which includes the reevaluation of the eligibility criteria for admission to auctions of shipping companies. The scope has also been extended to include the auctioning of allowances for a new and separate ETS for buildings, road transport and other sectors.
Additionally, there have been adjustments in provisions for the auctioning of aviation auction volumes. The regulation also entails provisions for the auctioning of allowances for the Innovation Fund, along with the introduction of new provisions for the auctioning of allowances for the Recovery and Resilience Facility in the context of REPowerEU and for the Social Climate Fund.
Moreover, the changes also focus on improvements IN market oversight and transparency. There are also alterations concerning the rules on the notification of the voluntary cancellation of allowances by member states under the ETS Directive.
Finally, the new regulation reflects the “lessons learned” from the implementation of EU ETS auctions, the EU Commission said in the press release.
Upon entry into force, this act will repeal and replace the old auctioning regulation. Further information is expected to be provided on the publication of the 2024 auction calendars in an upcoming regulatory update.