The EU Commission on Wednesday (June, 04) announced the auctioning of aviation allowances under the EU ETS is expected to resume in September, after a 18-month pause.
Government auctions of aviation allowances (EUAAs) have stalled since October 2012, when German bourse EEX hosted the first sale shortly before the EU suspended the obligation for international flights, Reuters Point Carbon reported.
Wednesday’s announce follows a compromise agreement exempting international airlines from paying for carbon emissions for the entire length of their flights until 2016, approved by the EU Parliament in April.
According to Reuters Point Carbon, limiting the regulation to intra-EU flights only has cut both the amount of free permits and those due to be auctioned to airlines by around a third from the original law, which was originally meant to cover emissions from all flights using EU airports from 2012. EUAAs can only be used by airlines for compliance, while EU allowances (EUAs), the staple EU carbon currency, are used by power plants and factories.
The Commission estimated 11.94 million would be auctioned to cover remaining 2012 obligations while 5.8 million would be sold to cover 2013 and 2014. The final number will be available at the end of 2014, the Commission said.