Emission allowances auction

The European Emissions Trading System (EU ETS) lets organisations obtain emission allowances to offset their emissions in two ways: through free allocation and through auctions. Auctions are a transparent way of allocating emission allowances and are in line with the principle that the polluter pays for CO2 emissions. Most of the emission allowances will therefore come to the market through auctions. In the fourth trading period (2021–2030), around 57% of allowances are expected to be auctioned.

While businesses obtain some of their allowances for free through allocation, they also have to buy some at auction to offset all their emissions. Auctioning of emission allowances takes place on the basis of the Auctioning Regulation (Regulation [EU] 1031/2010). It stipulates that each Member State must appoint an auctioneer. In the Netherlands, this is the Dutch Emissions Authority (NEa). The NEa monitors the course and financial settlement of the auctions and draws up an annual auction monitor.