A Reminder of the EU-ETS Rules on Banking for EUAs & CERs/ERUs


Authors
Mark C. Lewis and Isabelle Curien

Research Organisation
Deutsche Bank AG/London

Report Date
Oct. 1, 2010

Document summary

The revised EU Directive, December 2008, made no change to Member States’ obligation to allow the banking of EUAs issued from Phase-2 onwards, meaning the EUA shortage foreseen by the market in Phase-3 should already be anticipated in Phase-2. After 30 April 2013 EU-ETS installations/account owners in the EU Registry system with surplus Phase-2 EUAs will have them cancelled and in exchange receive an equivalent amount of Phase-3 EUAs. The Directive allows ETS operators to swap CP-1 CERs/ERUs into Phase-3 EUAs to the limit of their bankable unused Phase-2 CER/ERU quota and any additional Phase-3 quota until 31 March 2015.
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