As a short-term measure the Commission postponed the auctioning of 900 million allowances until 2019-2020.
This ‘back-loading’ of auction volumes does not reduce the overall number of allowances to be auctioned during phase 3, only the distribution of auctions over the period.
The auction volume was reduced by:
- 400 million allowances in 2014
- 300 million in 2015
- 200 million in 2016.
Back-loading was implemented through an amendment to the EU ETS Auctioning Regulation, which entered into force on 27 February 2014.
Through the decision to implement a Market Stability Reserve, the EU decided to transfer the 900 million allowances that were back-loaded in 2014-2016 to the MSR rather than auctioning them in 2019-2020.
Both backloading and the Market Stability Reserve only temporarily remove surplus from the market but to not decrease the tota emissiosn budget and therefore do not lead to a more ambitious target.