Backloading: A necessary, but not sufficient first step
In July 2012, the European Commission issued an invitation for public consultation to review the ‘auctioning time profile’ for the EU Emissions Trading Scheme” in order to collect views from stakeholders and experts in the field of the EU carbon market on a draft for a future amendment of the Commission Regulation on the timing, administration and other aspects of auctioning of greenhouse gas emission allowances. In this submission, the CEPS Carbon Market Forum addresses the following questions and offers its views on the Commission’s proposed amendments:
- Is back loading a good idea?
- Is there a need for following up the back loading with structural measures?
- What should the number be? If this cannot be addressed, what are the considerations for deciding upon that number?
- What price expectations are linked to the number? On what basis are they construed?
Andrei Marcu is Senior Advisor and Head of the CEPS Carbon Market Forum. This report was prepared as a formal submission to the European Commission in response to its invitation for consultation on the review of the auctioning time profile of the EU ETS. This report draws on discussions that took place among the members of the CEPS Carbon Market Forum (CMF).