Banking and borrowing under EU ETS and Boxer Kerry US draft of the new legislation
- Category: Emissions trading
Both of the above possibilities are admissible in the EU and US schemes.
Additionally, Boxer Kerry provides for an interesting solution: “borrowing with interest”.
EUAs and CERs as a security
- Category: Emissions trading
According to the circular of the ICE Clear Europe published in September 2009, the clearing house extended the list of permitted cover and included Emissions Allowances issued under the EU Emissions Trading Scheme (EUAs) and the Kyoto Protocol (CERs).
Clearing Members may now use Allowances or CERs to satisfy original margin requirements. In order to bring a margin, EUAs or CERs should be deposited with a special account of ICE Clear Europe.
So, this proposition and concept presented by the clearing house bases on fiduciary assignment of allowances. It is probably because the other forms of a hypothecation in relation to CO2 allowances are still questionable.
The landscape after the judgment – prognosis of legal effects and further scenarios
It seems unbelievable, that in the construction of the European Emission Trading Scheme occurred such a glaring and - potentially burdened with severe consequences – error in law.
Let’s analyze possible future legal scenarios, that are evoked with the judgment of the Court of First Instance of 23 September
Why can’t new investments in Polish power generators benefit from derogation laid down in Article 10c of the Directive EU ETS
- Category: Emissions trading
There is a threat, that new investments of Polish power generators can’t benefit from derogation provided for in Article 10c of the Directive 2003/87/WE – contrary to intentions, which were expressed by politicians and negotiators during December 2008 negotiations of climate - energy package.
Polish emission trading bill – unfortunately with many mistakes
- Category: Emissions trading
Polish national implementation measure – the bill of 22 December 2004 of a greenhouse gas and other substances emission trading addresses contract of sale as an only one, that can be applied in relation to a disposal of emission allowances.
It is a classical mistake of legislators.
First opinions in the European Commission’s consultation on the auctioning
- Category: Legal Alert
We remind, that it is now running the period for submission to the European Commission of opinions and remarks in respect of the future shape of the auctioning system.
Their opinions expressed inter alia the Danish Energy Association and the the Association of the Austrian Electricity Companies.
According to both opinions, a single-round sealed-bid auction is the most appropriate auction format for auctioning EU allowances. In the views of the stakeholders, the most appropriate pricing rule for the auctioning of EU allowances is uniform-pricing.
Rationale for this is the view that such a formula gives a clear price signal for the value of an EUA, thereby increasing predictability. It also ensures that every successful participant pays the same price, meaning that the auction price will be fair and minimises the risk of distorting the secondary market.
Both organisations also consider, that the rule for solving ties in the future Regulation should be pro-rata re-scaling of bids.
The opinions of both stakeholders are also consistent in that there should no reserve price apply.
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