Commission adopts new ETS Auctioning Regulation for Fit for 55

Following the publication of the draft act on the Have Your Say Portal for a four-week stakeholder feedback period, the Commission has now adopted a new Auctioning Regulation.

The Auctioning Regulation continues to set out the technical elements necessary for the good organisation of EU ETS auctions, such as the format, timing, frequency of auctions, rules about the auction calendars, eligibility of bidders to participate in auctions, rules on the selection and responsibilities of auction platforms, as well as on market oversight and transparency.

Compared to the previous version of the Auctioning Regulation, the main elements introduced in the new Auctioning Regulation are as follows:

• Changes related to the extension of scope of ETS to cover maritime, including of the eligibility criteria for admission to auctions of shipping companies;
• Changes related to the extension of scope to cover the auctioning of allowances for a new and separate emissions trading system for buildings, road transport and other sectors;
• Changes related to the provisions for the auctioning of aviation auction volumes;
• Changes related to the provisions for the auctioning of allowances for the Innovation Fund, as well as the introduction of new provisions for the auctioning of allowances for the Recovery and Resilience Facility in the context of REPowerEU and for the Social Climate Fund;
• Changes related to the improvements regarding market oversight and transparency;
• Changes related to the rules regarding the notification of the voluntary cancellation of allowances by Member States under the ETS Directive;
• Lessons learnt from the implementation of EU ETS auctions.

The adopted delegated act is now submitted to the European Parliament and Council for scrutiny. Provided that these institutions do not raise any objections within two months, it will be published in the Official Journal and enter into force thereafter.

Upon entry into force, this act will repeal and replace the old Auctioning Regulation (No 1031/2010).

Further information will be provided in an upcoming regulatory update regarding the publication of the 2024 auction calendars in view of the timing of the entry into force of the New Auctioning Regulation.

Further information:

• Adopted new Auctioning Regulation