London, 15 July 2010

The European Energy Exchange AG is interested in operating a carbon-auctioning platform in the European Union’s emissions trading system after 2012, the company’s chief executive officer has told Bloomberg. A regulation approved by the bloc’s 27 member states has laid the groundwork for the EU to set up a common carbon auctioning platform in the next phase of its cap-and- trade system, the world’s largest. Member states will also be able to apply for national platforms.

EEX, based in Leipzig, Germany, is continental Europe’s biggest energy exchange, trading power, natural gas and coal. It started handling auctions of EU carbon allowances this year for the country’s Environment Ministry. This gives the exchange an opportunity “to gather comprehensive experience for auctioning during phase three,” which starts in 2013, according to CEO Hans-Bernd Menzel.

“It appears consequent to us to continue to use this experience as a platform operator beyond the year 2012 for the common European platform as well as for possible national opt- out platforms,” Menzel said in an e-mailed statement to Bloomberg.

Germany, the U.K., Spain and Poland have expressed their interest in having individual carbon auctions starting in 2013. The European Commission, the EU regulator, said yesterday that together with participating nations, it will start preparing for the purchase of the common platform “without delay.”

The EU backed away from setting time limits on national platforms for carbon auctions in the next phases of its cap-and- trade program, deciding instead to review how they are working within five years.

The bloc, which has given away the majority of allowances since it started its emissions trading system in 2005, will require most emitters to purchase their allotment of permits starting in 2013. While the commission favored a single auctioning platform, it agreed to give member states the option of separately running their own national auctions.

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