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How does the EC assess banking of allowances between 2005-2007 and 2008-2012?

April 26, 2017allowances assess Banking

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How does the EC assess banking of allowances between 2005-2007 and 2008-2012?

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Banking (carry-over) of allowances from the first to the second trading period is allowed only if it does not lead to an allocation beyond the total allocation approved by the EC for the second trading period. Therefore, for each allowance allowed to be banked, an allowance must be deducted from the total quantity issued for the second trading period. In addition, banking has to be examined under EU state aid rules. Where banking is not a result of real emission reductions having been made, it is likely to be found incompatible with these rules.