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Purchase Channels for German Installation Operators in EU Emissions Trading

Purchase Channels for German Installation Operators in EU Emissions Trading

Evaluation of a Survey among all Operators of German Installations on their Purchase Strategies in the Second and Third Trading Period
In the third trading period there will be shifts within the carbon market; a cost-efficient organization of the emissions trading will play an increasingly important role.

This report evaluates the results of a survey conducted in the summer of 2013 among German operators by Ecologic Institute and the German Emissions Trading Authority (DEHSt). The report shows that in the third trading period there will be shifts within the carbon market and that a cost-efficient organization of the emissions trading will play an increasingly important role. The report is available for download.

Results:

  • In the second trading period, only about half of the responding operators were active as buyers.
  • In the second trading period, the chosen acquisition strategy was particularly dependent on the purchase volume and much less on the company size.
  • In the second trading period, the internal offsetting and the use of intermediaries were by far the most widely used acquisition channels for operators.
  • Operators which bought a large amount of emission allowances in the second trading period used mainly the OTC-market, the participation in auctions and exchange trading.
  • The overall financial burden for the participation in emission trading for the non-exchange participants averaged annual less than 20.000 Euro.
  • However the overall burden of the trade exceeded for some exchange participants the mark of 100.000 Euro per year, without including any fees and charges for clearing banks.
  • The operators expect for the third trading period a significant expansion of the purchase need.
  • Almost half of the responding operators plan to adjust their previous purchase portfolio in the third trading period. Thus, there will likely be shifts within the carbon market.
  • With a view to the growing importance regarding to the use of auctions in the emissions trading is to be noted that so far a total of 53 percent of the responding operators do not feel sufficiently informed about the auctioning of EU allowances.
  • The advantages of the "Auction Only" membership to participate in the primary auctions at the Leipzig Energy Exchange EEX are so far known to only very few operators.

The report on sources of supply and quantities in the EU emissions trading system [pdf, 570 kB, German] is available at the DEHSt's website.


Citation

Grünig, Max; Sabine Lund; Jan Weiß et al. 2014: Purchase channels for German Installation Operators in EU Emissions Trading. Evaluation of a Survey among all Operators of German Installations on their Purchase Strategies in the Second and Third Trading Period, Berlin.

Language
German
Author(s)
Jan Weiß (DEHSt)
Nadine Pauly (DEHSt)
Year
2014
Dimension
53 pp.
Project ID
2241
Table of Contents

1 About this Report
2 Methodology
2.1 Objective of the Survey
2.2 Audience Surveyed and Survey Period
2.3 Questionnaire Design
3 Analysis of the Survey
3.1 Overview of Respondents
3.2 Companies Subject to Emissions Trading since TP 2
3.2.1. Overview of key figures about acquisition channels in TP 2
3.2.2. Purchase Demand in TP 2
3.2.3. Correlation between purchase strategy and purchase demand in TP 2
3.2.4. Motives for selecting an purchase strategy in TP 2
3.2.5. Outlook to TP 3
3.2.6. Non-participation in exchange trading in TP 2
3.2.7. Exchange participants in TP 2
3.3 Companies Subject to Emissions Trading since TP 3
3.3.1. Overview of the strategic plans of new installation operators in TP 3
3.3.2. Comparing the strategic planning of new installation operators for TP 3 with the results from TP 2
3.3.3. Purchase strategy plans and expected purchase demand for new installation operators for TP 3
3.3.4. Non-exchange participants among the new installation operators
3.4 Information Status and Sources for Auctioning
3.4.1. Information sources with regard to auctioning
3.4.2. How informed companies are on auctioning
3.4.3. Conclusions about the status of auctioning information
4 Review and Outlook
5 Overview for the Use of each Purchase Channel
5.1 Companies Subject to Emissions Trading since TP 2
5.1.1. Auctions (n=3)
5.1.2. Secondary trading (n=11)
5.1.3. Intermediaries (n=43)
5.1.4. OTC (n=25)
5.1.5. Group internal offsetting (n=36)
5.2 Companies Subject to Emissions Trading since TP 3
5.2.1. Auctions (n=3)
5.2.2. Secondary trading (n=2)
5.2.3. Intermediaries (n=6)
5.2.4. OTC (n=3)
5.2.5. Group internal offsetting (n=5)

Keywords
emission trading, carbon markets, facility operators, Germany, Europe, survey