French Ministry concern over carbon auctioning platform plans

The French Environment Ministry has warned that establishing more than one platform for auctioning EU carbon allowances from 2013 could damage the carbon market. In April, the European Commission proposed a single, centralised auctioning platform with an opt-out clause for Member States allowing them to establish their own national schemes. The French Environment Ministry, however, has warned that having multiple platforms could raise the cost of auctioning and even open the door to fraudulent activities.

The Ministry told a recent conference in Brussels that if there is to be an opt-out, stronger measures will be needed to ensure that fraudulent practices are stamped out. The European Commission remains hopeful that Member States will reach an agreement on the rules before the summer. This draft regulation on auctioning EU carbon allowances will set rules for auctioning in the EU’s Emissions Trading System (EU ETSⁱ) from 2013.

The Commission proposal for a regulation can be found here:

http://ec.europa.eu/environment/climat/emission/pdf/proposed_auctioning_reg.pdf