As a result of the NIMs Decision, some 66.3 million more allowances are to be auctioned for 2013 but this figure will influence on auction calendars in 2014.

 

The European Commission Decision of 5 September 2013 concerning national implementation measures for the transitional free allocation of greenhouse gas emission allowances in accordance with Article 11(3) of Directive 2003/87/EC of the European Parliament and of the Council (2013/448/EU - the "NIMs Decision" accompanied by "Questions and Answers on the Commission's decision on national implementation measures (NIMs)" brings some key market determinations.

 

Over phase three of the European Union Emissions Trading Scheme (2013-2020), some 43 % (corresponding to 6.6 billion allowances) of the total phase three cap will be allocated for free to industrial installations. Further free allocation will be available to new entrants from the new entrants' reserve. 

It should be noted that these figures are based on installations operating on 1 January 2013. In case of closures, free allocation will be reduced. Free allocation to new installations will not have an impact on the above figures, as they are distributed from a separate account (the new entrants reserve).

 

Total amount of free allocation by country

in the EU ETS period 2013 - 2020 

Country     Free allowances   Austria 164 632 091 Belgium 293 208 651 Bulgaria 77 815 802 Croatia 40 308 355 Cyprus 7 079 243 Czech Republic 175 374 741 Denmark 75 369 687 Estonia 20 190 563 Finland 163 625 051 France 644 707 515 Germany 1 248 689 189 Greece 120 927 880 Hungary 88 655 264 Iceland 10 975 310 Ireland 41 247 01	Country     Free allowances   Italy 664 206 420 Latvia 18 167 832 Liechtenstein 85 555 Lithuania 44 586 184 Luxembourg 10 249 008 Netherlands 369 497 778 Norway 131 326 800 Poland 422 619 164 Portugal 90 169 746 Romania 206 855 629 Slovakia 120 642 546 Slovenia 19 027 211 Spain 526 303 310 Sweden 194 457 651 United Kingdom 510 739 800

 

Volume of allowances to be auctioned in the phase three

 

Generally the NIMs Decision is directly relevant for the volumes to be granted free of charge for industrial sectors and heat production, on the other hand it also affects the volumes of allowances to be auctioned since all allowances not allocated for free have to be sold in the auction.

 

Hence, the important new estimation that follows from the NIMs Decision is 8 176 193 157 which denotes the amount of allowances to be auctioned in the period from 2013 to 2020.

 

This volume has been determined by the Eurupean Commission taking into account:

- the limit set by Article 10a(5) of Directive 2003/87/EC,

- the allocation in respect of heat production pursuant to Article 10a(4) set out in the table below,

- the size of the new entrants' reserve,

- "the improved overview" of the number of allowances that will be allocated free of charge that results from NIMs Decision.

 

 

The said estimation of the amount of allowances to be auctioned follows for purposes of Article 10(1) of Directive 2003/87/EC.

 

  

Auction calendar  modifications

 

The change that follows from the modified auction overall volumes is the consequent adjustment of the auction calendar.

 

NIMs Decision will serve as input to the annual auction calendars throughout phase three and is relevant for determining annual auction volumes in each year from 2013 to 2020.

 

The auction calendar for 2013 was determined in 2012 without the necessary input on free allocation and was therefore based on an estimate of free allocation for 2013. As a result of the NIMs Decision, some 66.3 million more allowances are to be auctioned for 2013.

 

 

The 2013 auction calendars will not, however, be adjusted and the said volume will be added to the volume to be auctioned in 2014 (the detailed 2014 calendars will be modified by agreement of the Member States, the European Commission and the auction platforms EEX and ICE in accordance with the Auctioning Regulation).

  

Linear reduction factor value

 

In 2014 and each subsequent year, the total quantity of allowances determined for 2013 on the basis of Article 9 and 9a of Directive 2003/87/EC decreases by a linear factor of 1,74 % from 2010, amounting to 38 264 246 allowances.