Commission Delegated Regulation (EU) 2023/2830 laying down rules on the timing, administration and other aspects of auctioning of greenhouse gas emission allowances.

New Commission Delegated Regulation (EU) 2023/2830 as regards the timing, administration, and other aspects of the auctioning of emission allowances under Directive 2003/87/EC, which establishes a system for greenhouse gas emission allowance trading within the European Union, was published in the Official Journal (OJ) of the EU. The regulation covers a wide range of provisions aimed at ensuring the fairness, transparency, and integrity of the auctioning process.
One key aspect of the regulation is the establishment of rules for auction platforms, including provisions for competitive procurement processes and for the charging of settlement and other fees, the monitoring of bidder behavior, and the imposition of limits on bids to ensure a fair and competitive auctioning process.
In detail, the regulation specifies that the auctioneer should pay only for access to the auction platform, and the costs of the clearing and settlement system should be borne by the bidders. It also allows for a limited increase in fees if the annual auction volumes are reduced by more than 200 million allowances due to the operation of the market stability reserve. The regulation further requires auction platforms to monitor the behavior of bidders and report instances of market abuse, money laundering, and terrorist financing to the competent national authorities in accordance with relevant EU regulations. Furthermore, auction platforms are given the option to impose a maximum limit on what a single bidder can bid for, subject to obtaining the Commission’s prior opinion. Persons authorized to bid on behalf of clients are required to abide by rules to ensure their clients are adequately protected.
The regulation also addresses the language regime applicable to auction platforms, ensuring transparency and non-discriminatory access to auctions while balancing the need for cost-efficiency. Specifically, Member States have the option to provide translation of documentation into their national official language or languages, and auction platforms must handle communications in these languages without charging additional costs to the parties.
The regulation also sets out conduct rules for persons authorized to bid, including accepting instructions from clients on comparable terms, refusing to bid if there are suspicions of illegal activities, maintaining fair treatment and non-discrimination of clients, and preventing the disclosure of confidential information. Furthermore, bidders acting on behalf of clients are required to provide requested information to their customers, act with integrity, skill, care, and diligence, and comply with the requirements of Directive (EU) 2015/849, the Fourth Anti-Money Laundering Directive. Competent national authorities are responsible for authorizing such persons and monitoring their compliance with the conduct rules. Clients have the right to direct complaints regarding compliance with conduct rules to the competent authorities.
Finally, the regulation mandates the publication of various information related to auctions on a dedicated auctioning website, including legislation, auction results, and the list of persons admitted to bid in the auctions.