The European Energy Exchange AG (EEX) has been appointed by the European Commission to host the fourth phase of the Common Auction Platform (CAP4) for the EU Emissions Trading System (ETS) emissions allowances, starting January 2027. The duration of the contract has been set for five years.
The CAP4 mandate covers EU ETS 1 auctions for 25 EU Member States, three EEA EFTA states as well as funds already included under the third phase of the Common Auction Platform (CAP3). Separately, it will include the new EU ETS 2 system for 27 EU Member States, the three EEA EFTA states as well as the Social Climate Fund, bringing buildings, road transport and small industry under the umbrella. EU ETS 2 is a stand-alone ETS and the respective allowances are non-fungible with allowances from the EU ETS 1.
Peter Reitz, CEO of EEX, says: “It is exciting as much as an honour that EEX has been selected as the platform for the continued auctioning of the EU’s emission allowances. In times when geopolitical developments highlight the importance of energy transition, we are well-positioned to play this essential role and drive the transition forward. With the start of the new EU-ETS 2 system, these auctions will not only grow in importance but also in numbers, with a significant expansion of the participant pool.”
Details in terms of the admission process for new entrants and timelines will be published in due course.
EEX has worked closely with the European Commission on the EU ETS system since the launch in 2005 and hosted most EU ETS auctions since those began in 2010. To date EEX has successfully executed more than 3,200 emissions auctions, all run on its exchange platform and cleared by European Commodity Clearing (ECC).
The exchange currently serves as the platform for CAP3 and was recently awarded with the mandate to conduct the auctioning and sale of emission certificates (nEZ) within the German national emissions trading system (nEHS) from this year onwards.
EEX also offers EU ETS 2 futures contracts with expiries from December 2028 to support hedging needs of the wider trading community.
The European Energy Exchange (EEX) is a leading energy exchange which builds secure, successful and sustainable commodity markets worldwide – together with its customers and partners. As part of EEX Group, it serves international power, natural gas, environmental, freight and agricultural markets, and provides data, reporting and registry services. EEX is an enabler of the energy transition and decarbonisation, advancing renewables integration through dedicated products and services, including those related to guarantees of origin. More information: www.eex.com
