EU to Present Detailed Plan to Curb CO2 Oversupply on Nov. 14
The European Union’s regulatory arm said it will present next month a detailed proposal to curb oversupply on the carbon market, rebutting speculation it may delay the plan.
“The European Commission will present the tailor-made and proportionate impact assessment as well as the necessary details of the proposal on 14 November so that member states can take a decision before year-end,” Isaac Valero-Ladron, the climate spokesman for the commission, said by e-mail today.
The commission’s comment came after a forecast by Bloomberg New Energy Finance that it may delay until early next year the details of its strategy to postpone auctions of some carbon permits as of 2013 and help prices in the world’s biggest cap- and-trade market recover.
EU emission permits for 2012 fell to a record low in April after the financial crisis hurt industrial production and cut demand from industry for pollution rights, boosting the glut of allowances to almost a half of the average annual pollution limit in the system.
EU Climate Commissioner Connie Hedegaard presented in July an outline of a measure to postpone some auctions -- an idea known as backloading -- and a draft amendment to the bloc’s emissions trading law to reassert the commission’s right to decide about the timing of carbon-permit sales.
The number of permits to be delayed wasn’t specified in the draft measure and will now be included in the official proposal to be submitted to national governments on Nov. 14, together with an assessment of the impact of auction delays and a report on long-term potential options to improve the EU carbon market.
Details of Plan
EU member states, whose support is needed for the commission plan to take effect, are waiting for the impact assessment and the report before taking positions on the draft backloading proposal, according to the minutes of their Sept. 19 meeting published in an EU database earlier this month.
The commission may take several weeks after the publication of the assessment to iron out details of the plan to tackle oversupply and the precise volume of allowances to be withheld may not be published this year, Bloomberg New Energy Finance said earlier today.
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