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EU Effort Sharing Decision after 2020


EU Effort Sharing Decision after 2020

Auctioning of AEAs
Auctioning of Annual Emission Allocations

In October 2014 the European Council decided to enhance the availability and use of existing flexibility instruments under the EU Effort Sharing Decision. The auctioning of Annual Emission Allocations (AEAs) is one option to enhance flexibility. A new Ecologic Paper discusses advantages and challenges of AEA auctioning. The paper is available for download.


Meyer-Ohlendorf, Nils; Benjamin Görlach; Ennid Roberts 2016: EU Effort Sharing Decision after 2020: Auctioning of AEAs. Berlin.

21 pp.
Project ID
Table of Contents

List of Abbreviations
2. Introduction
3. AEA Auctioning: How could it work?
4. Advantages of AEA Auctioning
5. Questions related to AEA Auctioning
5.1. Can Member States submit closed bids?
5.2. May Member States buy at any price and speculate?
5.3. What happens if the auction does not clear?
5.4. Is there sufficient liquidity in an AEA market?
5.5. Is an AEA market prepared to deal with market participants that have significantly different market powers?
5.6. Is there a risk of collusion and strategic bidding?
6. References