The British government said it sold 4 million 2008 European Union carbon emissions permits on Wednesday at €16.15 a ton in the country’s first auction of the allowances to emit greenhouse gases.
The auction, held by the UK’s Department of Energy and Climate Change, was open to participants globally and raised €64.6 million ($81.55 million) for the British Treasury. Britain plans to auction a further 25 million EU allowances (EUAs) next year. It has said that revenues will not be earmarked specifically to develop renewable energy or fight climate change.
The European Commission allows governments to auction up to 10% of the allowances issued in Phase 2 of the EU’s Emissions Trading Scheme (2008-2012), to allow industry to prepare for Phase 3 (2013-2020), when EUAs will no longer be issued for free to many participants. Benchmark EUAs CFI2Z8 were trading 13 cents higher at €16.68 a ton following the auction, recovering from a fresh 20-month low hit earlier Wednesday. The UK Debt Management Office, which oversaw Wednesday’s auction, said it was more than four times oversubscribed. (Reuters)