The European Energy Exchange (EEX) will conduct a secondary market auction for European emission allowances (EUAs) on behalf of the Ministry of Environmental Protection and Regional Development of Latvia.
The auction is scheduled for 16 November 2018 with the bidding window being open from 09:00 to 11:00 (CET). The auction volume amounts to 3,126,500 EUAs. This is the first auction on behalf of a public auctioneer on the EEX secondary market which means that the certificates have already been allocated to the market, but have not been used for compliance before.
Peter Reitz (pictured), CEO of EEX, comments: “We are pleased to extend our auction services for Latvia where we already conduct emissions auctions on the primary market. The secondary market auction will open emissions auctions to a wider audience that is not active on the primary market yet.”
On the secondary market, emission allowances that have already been issued are traded on an exchange by trading participants or registered for clearing. Via primary market auctions, emission allowances are issued to the market for the first time.
Ilze Prūse, Director of Climate Change Department of the Ministry of Environmental Protection and Regional Development of Latvia, says: “Latvia has extensive experience in the implementation of national green investment schemes related to climate change. Initially funding for these schemes was from sales of Assigned Amount Units within international emission trading established by the Kyoto Protocol; however, currently for already several years the proceeds from auctioning of emission allowances within the scope of the EU ETS Directive are used.”
“The Ministry of Environmental Protection and Regional Development of the Republic of Latvia confirms that the revenues from the auctioning of these emission allowances on the secondary market of EEX will be completely used within the national green investment scheme and thereby contribute to Latvia’s low carbon and climate resilient development.”
EEX currently carries out primary market auctions for emissions allowances on behalf of the European Commission and the 25 EU member states as well as Germany and Poland. This corresponds to approximately 90 per cent of the emission allowances issued through primary market auctions in Europe. Clearing and settlement of the emission allowances is conducted by European Commodity Clearing (ECC).
