Delaying the sale of 1.2 billion European Union carbon permits would boost revenues of national governments by 7 billion euros ($8.96 billion), a report commissioned by environmental lobbies WWF and Greenpeace showed.
Revenues from auctioning carbon-dioxide allowances by EU member states would increase to 92 billion euros in the 2013-2020 trading period in the region’s emissions trading system should the bloc agree to delay some auctions by five years, according to the report based on modelling by Oeko-Institut e.V. in Berlin and published today.
Withholding 1.4 billion permits for at least 10 years would raise auctioning revenues by 12 billion euros to 97 billion euros and increasing the EU domestic greenhouse-gas reduction target to 25 percent from the current 20 percent would add about 63 billion euros, according to the report.
The European Commission, the bloc’s regulatory arm, is due to propose on Nov. 14 a specific number of permits whose auctions could be postponed to a later stage in the next trading period, known as Phase 3. The strategy, which needs approval by member states to be enacted, is known as backloading.