UK government revises Community Emissions Trading Scheme

HM Treasury announced revisions to the Community Emission Trading Scheme today which set out how the UK will conduct auctions of carbon allowances and how participation in Phase II of the European Emissions Trading Scheme (EU ETS) will be governed.

The 2009 Scheme has been altered from the 2008 version of the scheme in two specific areas.

The first amendment carries out a previous government commitment to create a non-competitive bidding facility especially designed for smaller emitters. Businesses that take part in the EU ETS will now be allowed to bid for up to 10,000 EU allowances (EUAs) at the clearing price determined at auction. The government is yet to announce which auctions will include a non-competitive bidding facility.


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