Linklaters Environment and Climate Change Bulletin

Regular updates and discussion on environmental and climate change policy and regulatory issues relevant to our clients, by the Linklaters Environment and Climate Change practice

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European Commission proposes EU ETS ‘back-loading’ reforms  

2 August 2012 

On Wednesday 25 July, the EU Commission proposed changes to the EU ETS which, if approved, will empower the Commission to take measures to stabilise the flagging price of EU emissions allowances (“EUAs”). The Commission’s proposal is to amend Directive 2003/87/EC (the “EU ETS Directive”) and Regulation 1031/2010 (the “Auctioning Regulation”), to permit it to adapt the current EUA auction schedule, by “back-loading” auctions of EUAs to the later years of Phase III of the EU ETS (2018-2020 or 2020 only). The amendments, the Commission says, are intended to promote the orderly functioning of the EU ETS and provide consistent price signals throughout Phase III, rather than to inflate the price.

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