EUA allowance auction goes live today

In the past, the UK government has allocated EUAs to industry for free, but this method has been criticised for creating an oversupply of credits in the carbon market, leading to windfall profits for some sectors.

"The auction of EU ETS allowances marks the start of changes to the EU's carbon trading scheme to make it more demanding," says Michael Wood, partner at law firm Eversheds.

The EU now plans for 100% of EUAs to be auctioned off in the next phase of the EU ETS from 2012-2020, but before th

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