The European Commission has recently concluded a review on the timing of actions of emission allowances under the European Trading System. In the words of Connie Hedegaard, Climate Action Commissioner, “the EU ETS has a growing surplus of allowances built up over the last few years. It is not wise to deliberately continue to flood a market that is already oversupplied. This is why the Commission today has paved the way for changing the timing of when allowances are auctioned. This short-term measure will improve the functioning of the market.’

The Commission is proposing a minor amendment to the ETS Directive, which would still require approval by the European Parliament and the European Council, who will work on it following the summer recess.

This decision comes following a discussion of the option of a set-aside or set-back of allowances, which was previously reported on.

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