CIG: Germany begins auctioning spot Carbon Credits in 2 year plan.

Jan. 12, 2010 - PRLog -- CIG has learned that Germany this week sold 300,000 spot carbon emission permits at €12.71 ($18.42) per metric ton, in the second auction of this sort according to the European Energy Exchange AG (EEX).

Germany, ranked as the globes 6th largest emitter of greenhouse gasses, and the European Unions largest, intends auctioning 40 million permits during 2010 and another 40 million next year, accounting for almost 10% of the nation’s annual cap in the EU’s carbon trading system. Marketing allowances to companies as opposed to giving them away boosts the incentive for polluters to cut emissions.

CIG understands this news come hot on the heals of a press conference by  the head of the Potsdam Institute for Climate Impact Research, Hans Joachim Schellnhuber who said that Germany has every intention of sticking to its pre-Copenhagen pledge of cutting carbon emissions by 40% by 2020, an increase of its initial pledge of 30%. Mr. Schellenhuber is also the advisor to German Chancellor Angela Merkel and the EU on climate change.

Before adopting the auctioning process in 2010, Germany previously marketed some of its allowances on European carbon trading exchanges through its state owned bank KfW Bankengreppe.

Germany intends holding weekly sales of 300,000 permits from January through October this year and in 2011, and 870,000 weekly beginning in November, CIG has learned from the EEX.

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