Backloading – change in the rules for auctions of emission allowances

Abstract

The energy and climate package which was approved in 2009 defined ambitious target for reducing greenhouse gas emissions at least by 2020. The basis of the reformed EU ETS has become the auction of emissions allowances which is based on market mechanism. The financial crisis led to a significant reduction in greenhouse gas emissions and lower prices of the emission allowances. In order to raise of the EUAs price and improve the profitability of investment in renewable energy sources Commission aims to the adoption of the legislation that modifies the energy and climate package. The proposed administrative solutions consisting of change auctioning schedule seem to violate the treaty law and the principles on which was based EU ETS. This article presents the arguments against the adoption of the draft this legislation.