Poland to Start Carbon Sales in December, May Continue in 2013

Poland aims to start in December auctions of carbon permits for the next trading phase in the European Union emissions trading system and may continue the sales in early 2013.

The central European country will be able to begin selling allowances for the 2013-2020 stage in the EU carbon market after it signs an agreement with the European Energy Exchange AG, according to Magdalena Sikorska, spokeswoman for the Polish Environment Ministry. The procedure should be finalized and sales should start about the start of December, she said.

“Sales may continue in 2013,” Sikorska said by e-mail today. “The auctioning schedule will have to be agreed with EEX, in line with EU rules.”

The 27-nation EU is moving toward selling a greater proportion of carbon allowances, now mostly given to companies for free, in the eight-year trading period starting in 2013, known as Phase 3. To smooth the transition and limit price shocks as free allowances are being gradually phased out, the bloc agreed to auction a total of 120 million Phase 3 permits this year, out of which Poland is to sell 14.7 million.

The Polish government will use the EEX as the auctioning venue only temporarily before setting up a national platform. Two other countries that opted out of a common EU platform, the U.K. and Germany, already chose their exchanges earlier this year.

Poland is finalizing legislation to enable the start of a national platform and will issue a tender as soon as the new rules enter into force, according to Sikorska. “From the moment the work ends we will need some three months to announce the tender and choose a winner,” she said.

The EEX in its capacity as the common platform will begin auctions of post-2012 carbon allowances on behalf of 12 EU states on Nov. 13, according to the latest version of the bourse’s auctioning calendar. The schedule will be updated on a weekly basis to add the remaining 23 countries, including Poland, which haven’t yet concluded their preparations to start sales of Phase 3 permits.

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