(Adds details, background)
LONDON Feb 7 (Reuters) – The European Energy Exchange
(EEX) on Tuesday announced it would launch a derivatives market
for European Union carbon permits for airlines in April and a
spot market by mid-year.
“With this step EEX makes an active contribution to the
further development of EU emissions trading and opens its market
for a new group of participants,” the EEX said in a statement.
As of Jan. 1 this year, all airlines flying to and from
Europe have to cover their carbon dioxide emissions with
So-called EU Aviation Allowances (EUAA) can only be used by
airlines to comply with the EU’s emissions trading scheme, the
world’s biggest carbon market.
Critics of the scheme, which covers around half of the
27-nation bloc’s carbon dioxide emissions, include non-EU
countries such as China, India and the United States.
They argue the EU is exceeding its legal jurisdiction by
calculating the carbon cost over the whole flight, not just
within Europe. In December, Europe’s highest court found that
the EU plan was within international law.
China’s Foreign Ministry said on Tuesday it hoped talks with
the EU could resolve a dispute over the region’s airline
emissions fee scheme. A day earlier China said its airlines were
banned from participating in the carbon scheme.
Leipzig-based EEX is not alone in offering trade in EUAAs.
Last month, commodity Exchange Bratislava (CEB) said it would
launch trade in EU aviation emissions permits before the end of
Henrik Hasselknippe, a managing director at the Green
Exchange (GreenX), said he was following the developments: “We
will launch the relevant products in due time.”
He was unable to provide specific details on the timing.
“It is encouraging to see the momentum building for the
aviation emissions market, although we do note that there are
still some uncertainties on the international level,” he told
London-based ICE Futures Europe accounts for about 90
percent of all traded volume in EU carbon permits and
U.N.-backed offset credits.
A spokesperson from ICE Futures Europe was not immediately
available for comment.