Provision of Auctioning Services for EU Emissions Trading System (EU ETS) Emissions Allowances to Enable Compliance with the Northern Ireland Protocol (NIP)

The UK, as part of its withdrawal from the EU, has set up the UK Emissions Trading Scheme (ETS), which operates separately from the EU Emissions Trading System, and the majority of UK-based installations have transitioned into operating under this new scheme. However, relevant power generators in Northern Ireland will remain in the EU ETS under the terms of the Withdrawal Agreement and the Northern Ireland Protocol; as such, recognising the emissions of those generators, the UK is entitled to an allocation of allowances for auction under the EU ETS (approximately 1 million allowances per year).

EEX was appointed by the European Commission to conduct auctions for EU ETS allowances. Under the terms of their contract and the Auctioning Regulations, EEX are required to allow states to use the arrangement without becoming a party to the contract. EEX shall offer the same terms and conditions applicable under the EU Contract to the opt-out member states "unless derogations are necessary for taking into account the specificities of the auctioning for those States".