Record-breaking emission allowance prices in the third quarter of 2019

From the beginning of the year to the end of September 2019, the revenues from trade with CO2 emission allowances for Bulgaria are 332 million EUR (649 million BGN) or with 33% more compared to the same period last year according to European Energy Exchange (EEX) data. In the third quarter of 2019, revenues were highest in July 2019, reaching 54.5 million EUR. The increasing of the emission revenues is mainly due to the higher prices for the nine months of 2019 compared to the same period of the 2018. According to Art. 10 (3) of the Directive establishing a scheme for greenhouse gas emission allowance trading Member States determine how the proceeds of the auctioning of allowances will be used. It is imperative that at least 50% of the revenue from allowances be used in activities related to greenhouse gas emission reductions, RES development, and the development of other technologies contributing to the transition to a safe and sustainable low carbon economy, to support compliance with the commitment to increase energy efficiency by 20% by 2020, measures to prevent deforestation and increase afforestation, environmentally friendly capture and storage of CO2 in geological formations, promote the transition to you s low-emission transport and public transport, finance research and development activities related to energy efficiency and clean technologies. On October 23, 2019, the Council of Ministers approved a bill to supplement the Climate Change Restriction Act. It establishes a harmonized legal framework to put in place a mechanism to support businesses in the industrial sectors and sub-sectors at significant risk of carbon leakage due to indirect costs of greenhouse gas emissions at final electricity price. The State aid scheme will be implemented through the issuing of an ordinance by the Minister of Economy and will be implemented after its notification by the European Commission. Up to 25% of the revenue generated from the auctioning of greenhouse gas emissions allowances will be used for this purpose. According to the price decision Ц-19 / 1.07.2019 the energy regulator estimates the revenues from the sale of emission allowances to reach 861 mln. leva (440 million euros) for the period 1.07.2019-30.06.2020.



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Source: Bulgarian Photovoltaic Association