The United Kingdom plans to start UK ETS auctions on 19 May 2021. Following this date, auctions will be held every 2 weeks in 2021 on ICE Futures Europe. Around 83 million of allowances will be available for auction in 2021, which is more than half of the total UK ETS 2021 cap of around 156 million allowances. There will be approximately 40 million allowances allocated for free to stationary installations in 2021.
In addition, the UK authorities may impose limits on auction bids and holdings of permits under a so-called cost containment mechanism (CCM) if prices were to remain above £44.74/tCO2eq (US$63.21/tCO2eq) for three consecutive months. The trigger price should be updated every month. Total emissions from the UK’s EU ETS participants were just under 130 MtCO2eq in 2019 and 105 MtCO2eq in 2020 (down from 236 MtCO2eq in 2013 at the start of the EU ETS Phase III).
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