Environmental Engineering Reference
In-Depth Information
ances of a given year not later than April 30
of the following year. That is to say, April
30, 2010 is the deadline to surrender the
allowances for 2009.
22 Article 16 (4) of the 2003/87/EC Directive
says that the “payment of the excess emis-
sions penalty will not release the company
from the obligation to surrender an amount of
allowances equal to those excess emissions
when surrendering allowances in relation to
the following calendar year”. See EC (2003).
23 For additional information about these mar-
kets see the official web pages: CLIMEX
(www.climex.com), EEX (www.eex.de),
ECX/ICE (www.ecx.eu and www.theice.
com), EXAA (www.exaa.at/cms), NordPool
(www.nordpool.no), BlueNext (www.blu-
enext.fr) and SENDECO2 (www.sendeco2.
com).
24 Clearing is the process of calculating the
mutual obligations of market participants
and maintaining position accounts, usually
on a net basis, up to the final exchange of
the underlying and monies to fulfill such
obligations. A clearinghouse with a Central
Counterparty (CCP) function becomes the
buyer to every seller and seller to every
buyer of a specified set of contracts eligible
for clearing. In so doing, a CCP mitigates
counterparty default risks and, therefore,
allows the segregation of trading and credit
relationships between counterparties. In
short, a CCP is a prerequisite to attract liquid-
ity from a diversified trading community.
25 Source of time series: www.ecx.eu/Market-
Data
26 Source of time series: www.ecx.eu/Market-
Data
27 Source of time series: www.ecx.eu/Market-
Data.
28 Source of time series: www.ecx.eu/Market-
Data and www.eex.com/downloads.
29 Source of futures time series: www.ecx.eu/
Market-Data. Source of spot contract time
series: www.bluenext.fr/statistics.
30 For example, Sijm et al. (2006) found differ-
ing pass-though rates for Germany ranging
from 39 to 73 percent in the period from
January to July 2005 and from 60 to 80
percent in the remaining of 2005.
31 Source of time series: www.ecx.eu/Market-
Data and www.eex.com/downloads.
32 For a more comprehensive discussion of the
susceptibility of futures markets to market
manipulation see, for example, Easterbrook
(1986).
33 In our considerations we follow Article
10(4) the revised ETS Directive in EC
(2009) which demands “… a regulation on
timing, administration and other aspects
of auctioning to ensure that it is conducted
in an open, transparent, harmonized and
non-discriminatory manner. To this end,
the process should be predictable, particu-
larly regarding the timing and sequencing
of auctions and the estimated volumes of
allowances to be made available”.
34 In January 2010, Germany auctioned a total
of 3.48 million t at the European Energy
Exchange (EEX) resulting in proceeds of €
45.4 million. The German government, via
state-owned bank KfW, auctions 300,000
spot allowances every Tuesday and 570,000
allowances for December 2010 delivery
every Wednesday. Germany's national al-
location plan calls for the sale of 40 million
t a year already throughout the second trad-
ing period 2008-2012. Refer to www.dehst.
de for the periodic reporting on Germany's
auctioning regime. See also websites of the
involved exchanges at www.eex.com and at
www.eurexchange.com.
35 Refer, for example, to the Market in Finan-
cial Instruments Directive (MiFID) and the
Market Abuse Directive (MAD) and the
respective national implementations.
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