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EU countries allocate 59% of total CO2 allowances for 2019

08 March 2019 | Trading

EU countries have allocated a combined 445 million carbon dioxide allowances for 2019, or 59% of the eligible total, according to data released Friday by the European Commission.
The annual allocation by governments is vital for companies operating over 12,000 power plants, factories and airlines across Europe, which are required to surrender allowances each year by April 30 to cover the previous year's verified CO2 emissions. 

The volume allocated so far is part of a total of 758 million allowances eligible for free allocation across the 31-nation EU Emissions Trading system, according to EC data.

The figures show that all EU member states have started the allocation process for 2019, with the exception of Italy, Spain, Finland and Latvia. The UK has also not allocated allowances for 2019, as its ability to allocate and auction allowances has been suspended by the EC pending agreement on a Brexit withdrawal deal with the EU.
The 445 million carbon allowances issued so far in 2019 are worth roughly Eur9.92 billion ($11.25 billion), based on Friday's closing price of Eur22.28/mt.

The volume remaining to be allocated for 2019 is 313 million mt, the figures show. Excluding the UK, the volume left still to be allocated is 251 million mt.

The EC will update the free allocation figures March 15, it said in documents dated March 1.
Auctioning is the default mechanism for primary EUAs entering the market under the EU ETS at 57% of the total, with the remainder allocated freely to industrial sectors exposed to global competition, including cement, metals, chemicals and refining.

 

Souce: S&P Global