Low demand prompts first auction cancellation

摘要

Low demand led to the first ever cancel- lation of an allowance auction under the EU emissions trading scheme (ETS), in a further sign of oversupply. The European Energy Exchange (EEX) - which in October won the con- tract to host EU ETS phase 3 (2013-20) auctions - cancelled a German auction for 4.02mn allowances on 18 January because bids were below the reserve price. Auction rules stipulate that an auction can be cancelled if the clearing price falls "significantly under the price on the secondary market". EEX extended the bidding window by 15 minutes to allow more time for the reserve price to be reached, but without success.