Competitive auctions
UK EU ETS auctions are open to anyone who has an ETS Registry account. To place a competitive bid in a UK EU ETS auction, participants need to submit their bids through an intermediary known as a Primary Participant who has direct access to the auctions.
Organisations must apply to DECC to become Primary Participants and will be assessed against the eligibility criteria set out in the Community Emissions Trading Scheme (Auctioning of allowances) Scheme 2009 (known as 'the Scheme'). Account holders who wish to place a competitive bid through a Primary Participant are known as indirect bidders.
The first auction was held on 19 November 2008 and contained a competitive bidding route only. The first auction with both competitive and non-competitive bidding took place on 7 January 2010. Non-competitive bidding allows account holders to submit one bid of up to 10,000 allowances before competitive bidding begins. The competitive stage of the auction will determine the clearing price, which is what non-competitive bidders will pay for their allowances.
If you have any queries on the Primary Participant application process or bidding in the UK EU ETS auctions as an indirect bidder, please email the EU ETS auctioning team at:
Primary Participants
The details of the role of Primary Participants are set out in the Scheme, but essentially the role will involve collecting and submitting bids on behalf of participants who wish to acquire allowances at auction (known as indirect bidders).
Primary Participants will be able to submit bids on their own behalf, as well as on behalf of indirect bidders. Once appointed, Primary Participants must abide by the terms set out in the Scheme.
These include accepting instructions to act on behalf of any organisation with an EU Registry account, subject to anti-money laundering and terrorist financing checks and their own objective checks on the indirect bidders’ ability to pay for allowances.
Applications to become a Primary Participant
Any organisation with an EU ETS Registry account and an office base in a European Economic Area (EEA) state can apply. The Primary Participant application window is currently open and is expected to remain open for the remainder of Phase II.
If you would like to apply to become a Primary Participant, you will need to complete and return a signed copy of the form and supporting documentation to:
DECC
EU ETS auctions
Area 6B
3-8 Whitehall Place
London, SW1A 2AW
Please refer to the accompanying Guidance note to applicants (PDF, 250Kb) when completing your application form. For further information please contact eu.ets@decc.gsi.gov.uk.
We will assess applications in accordance with the eligibility criteria set out in the Scheme. We will try to process the applications as soon as possible, but approval may take up to one month. If you are considering applying to be a Primary Participant, you should ensure you submit your application in time for it to be processed before an auction.
We will notify applicants of our decision and publish details of successful applicants on the Debt Management Office (DMO): EU Emissions Trading Scheme web pages within five working days of the decision notification. Information published will include contact details of appointed Primary Participants so that indirect bidders can select a Primary Participant to place bids on their behalf in an auction.
Indirect bidders
ETS Registry account holders wishing to place a bid in an auction must contact a Primary Participant to submit bids on their behalf. Account holders who have been approved by Primary Participants are known as indirect bidders.
Primary Participants are not allowed to charge a fee or other payment for placing a bid in an auction on behalf on an indirect bidder. However, they may request upfront payment from an indirect bidder to cover their proposed bid.