European Emission auctions in London

London confirmed its position as the centre of carbon trading, now accounting for 90% of European and 80% of global trading. The UK's first auction of Phase III allowances under the European Union Emissions Trading Scheme (EU ETS) took place recently in the City of London using the ICE Futures Europe auction platform. The auction sold 6.5 million EU allowances (EUAs), each of which allows its owner to emit one tonne of CO2 equivalent, at a price of €6.62, raising some £34 million for the UK exchequer. The auction was the first to use the ICE Futures Europe auction platform, being previously administered by the Treasury's Debt Management Office (DMO). Phase III of the EU ETS covers the period from 2013 to 2020 and is expected to deliver emission reductions of 3100 MtCO2e compared with 2005 levels. "Not only does this help incentivise significant emission reductions and behaviour change amongst businesses, but it also generates millions of pounds in revenue each year for the Treasury, at little or no cost to the taxpayer. This is a win-win, which makes both environmental and economic sense," commented Energy minister Greg Barker. ICE Future Europe