Phase III of the European Union Emissions Trading Scheme (ETS) commenced in 2013 and will operate until 2020.During this period approximately half of Phase III EU Allowances (EUAs) will be sold through regular auctions on exchanges such as ICE Futures Europe, in accordance with Commission Regulation (EU) No. 1031/2010 (the "Auctioning Regulation"). EU Aviation Allowances (EUAAs) were introduced in January 2012 and following an initial postponement are now being auctioned in a similar way.
Since November 2012, ICE Futures Europe has been conducting Phase III EUA auctions on behalf of the U.K. Government. The first EUAA auction on ICE took place in September 2014. The ICE U.K. EUA auction contract and ICE U.K aviation auction contract are two day spot contracts.
During the emissions auctions, bids are submitted on WebICE, ICE's front-end trading platform. WebICE is widely recognised for its state-of-the-art trading infrastructure which delivers flexibility, connectivity and reliability to participants across the globe.
For further information on Phase III of the EU ETS, please see the websites of the Department for Business, Energy and Industrial Strategy and the European Commission.
In order to access auctions on ICE Futures Europe, all participants must satisfy the eligibility and admission criteria set out in Articles 18 and 19 of the Auctioning Regulation and have the necessary regulatory permissions or exemptions.
All participants must apply for admission to the auctions to an Exchange Member, an Auction-only Access Provider or directly to the Exchange. For a list of Auction-only Access Providers, please contact ICE Futures Europe. All participants must have an arrangement in place with an ICE Clear Europe Clearing Member.
The practical arrangements vary according to whether you are an Exchange Member, an existing non-Exchange member participating in ICE Emissions markets or a new participant. SMEs who are neither Exchange Members nor an existing market participant can access the auctions as new participants. Details of these arrangements can be found in the ICE Contract Rules and Procedures and are summarised in How to Participate.
Successful bidders pay a fee to ICE of €0.20 per contract, which equates to €0.00040 per allowance.
Auctions of European Union Allowances (EUAs) take place every other Wednesday throughout the year, between 08.00am and 10.00am U.K. time (9.00am and 11.00am Central European time).
The next UK auction of European Union Aviation Allowances (EUAAs) takes place on 26th October 2016, between 08.00am and 10.00am U.K. time (09.00am and 11.00am Central European time).
See below for the full auction schedule of auction dates and volumes.