EU parliament backs fast CO2 market fix as ministers set to OK plan Feb 24

The European Commission moved closer to being able to hold back 400 million EU Emissions Trading System allowances from planned auctions this year after the European Parliament approved the move in a vote Thursday.

Meanwhile EU ministers are tentatively scheduled to give the EU Council’s formal approval without further discussion on February 24, an EU diplomatic source told Platts Thursday.

The EC has to wait for both the parliament and council to approve the detailed timetable for backloading a total 900 million allowances from planned auctions in 2014 to 2016 to the end of the decade before it can adopt the measure into law and start changing the auction volumes.

If the council’s approval goes ahead on February 24, the EC will likely be able to start the backloading in March, which would allow it to hold back 400 million allowances this year.

If the council’s timetable slips, and backloading starts after March, the EC will only be allowed to hold back 300 million allowances this year.

These were the terms of the EC’s proposal agreed by an EU committee of national government officials on January 8.

A March start required faster approval from the parliament and council than the standard three-month deadline.