Enel SpA (ENEL) supports the European Union plan to delay some auctions of emission permits as of 2013 to curb oversupply, said Giovanni Bertolino, head of carbon regulation at the Italian power producer.
“Backloading can be a starting point, but we cannot assume it’s enough,” he told a Platts conference in Brussels today. “What we need is thinking about the future and a structural reform of the ETS.”
The adequate volume of allowances that the EU should delay at auctions in the next phase of its emissions trading system is from one billion metric tons to 1.2 billion tons, according to Bertolino. The allowances could be withdrawn from auctions in 2013 and 2014 and returned to the market in 2018-2020, he said.
The so-called backloading would give the EU time to prepare a long-term market overhaul while avoiding a further decline of prices, Bertolino said. It would also confirm the political willingness of European governments to strengthen the cap-and- trade system, he said.
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