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EU Freezes Auctions of 2012 Carbon Permits for Airlines

The European Union will freeze auctions of 2012 carbon allowances for airlines after deciding earlier this week to seek a delay in implementing emission curbs on flights into and out of the region’s airports.

The European Commission, the bloc’s regulatory arm, said it asked the European Energy Exchange AG, which hosts auctions for 25 member states, to put sales of permits for aviation on hold.

Germany, which holds separate auctions on EEX, and the U.K., whose auctioning platform is ICE Futures Europe, are also contacting those exchanges to postpone sales of allowances for airlines, the commission said on its website today.

“The commission will provide more information about the volume and timing of 2012 aviation allowance auctions in due course, so as to ensure that the appropriate volume is auctioned by April 2013,” according to the statement.

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