Energy bourse EEX publishes 2024 emission auction volumes

The European Energy Exchange (EEX) released its 2024 calendars for the auctioning of emission allowances within the EU's emissions trading scheme (EU ETS) on 21st December.

The EU Emissions Trading System mandates that manufacturers, power companies, and airlines pay for each tonne of carbon dioxide they emit as part of the European Union's climate targets. In 2024, the EEX plans to auction a total of 677.3 million EU allowances (EUA), encompassing sales through the EU's common EU Auction Platform (CAP3) and separate auctions for Germany, Poland, and Northern Ireland. Additionally, 6.7 million EU Aviation Allowances (EUAA) will be auctioned.

It's worth noting that the volumes for EUA auctions from September to December 2024 are preliminary and may be subject to adjustments, according to the EEX. The European Commission announced in November that the number of permits member states will sell from September to December 2024 would be published on July 31.

Analysts at Vertis Environmental Finance anticipate potential adjustments under the EU ETS' market stability reserve (MSR), suggesting that the EEX volumes for September to December 2024 could be around 76 million lower. Stefan Feuchtinger, Head of Market R&A at Vertis, predicts that the actual 2024 auction volume may be approximately 608 million, 84 million more than the 523 million EUA total for 2023, falling within the market's expected range.