How can I access the sell-off platform?
The sell-off can be accessed via a web-based platform which is currently being developed. The log-in details will be provided once you are admitted to EEX/ECC. Alternatively, you can use the services of an intermediary (see question "What is an intermediary? What are the benefits?" under ‘Admission’).
How often will sell-offs take place?
Sell-off events will be scheduled twice every week throughout the year, with a time window of 6 hours. The exact dates will be published in the sell-off calendar six week ahead of the sell-off start date.
Are there plans to expand the frequency of the sell-offs to more than twice a week?
At present, we assume that two sell-offs per week will be sufficient. There are currently no plans to expand the number of sell-offs per week.
What quantity of certificates will be available in the sell-offs?
The quantity per sell-off is not limited.
What limits will apply in the sell-off?
- Cash limit:
- For Non-Clearing Members and Clearing Members there are no mandatory limits but there limits are possible in accordance with the settings in the ECC Member Area.
- For Direct Clearing Participants, a mandatory limit shall apply in accordance with the collateral provided.
- No limit applies to the new special form of EEX/ECC membership for nEHS-only access. However, the delivery of the nEHS certificates will as well only take place after the payment has been made.
- The post-purchase-limit
The following applies to all participants from 2022 onwards: Only a quantity of 10% of the certificates with the vintage of the previous year held in an associated compliance account on 31.12. in the previous year can be purchased in the current year (in 2022 this would be the vintage of 2021).
Example: A participant has 1,000 certificates with a vintage of 2021 in his compliance account on 31st December 2021. Now he or an intermediary acting on his behalf may buy up to 10% of this quantity, i.e. 100 certificates, with a vintage of 2021 in 2022.
I would like to participate in the sell-off without becoming an EEX member. How can I do that?
You can conclude a contract with an intermediary. A list of intermediaries will be provided as soon as possible on this website.
What vintages will be available?
Two vintages will be available per calendar year. The vintage of the current year can be acquired to an unlimited extent and, from 2022 onwards, also the vintage of the previous year can be purchased. However, subsequent purchases are limited to 10% of the previous year's quantity and are only possible with delivery no later than on 30th September of the respective year (see question "What limits will apply in the sell-off?" 2.The post-purchase-limit ).
Is it permissible for a company A (which is not itself subject to a surrender obligation) to procure allowances on behalf of a company B of the same group (which is subject to a levy obligation) and to make them available by transferring them via the respective accounts?
This is possible. Corresponding prerequisites for acquiring emission certificates for third parties were explicitly created within the framework of Article 5 of the Fuel Emissions Trading Regulation(BEHV).
How does the post-purchase rule work in detail?
Pursuant to Article 6 (2) BEHV, the balance of emission certificates shown on the compliance account of a responsible party at the end of the calendar year is decisive for the application of the so-called "post-purchase rule", which allows the limited (post-)purchase of emission certificates at the price of the previous year between January and September of the following year. A corresponding deposit of the balances of all compliance accounts with the sell-off platform is implemented so that compliance with the limitation is ensured for the post-purchase dates. The balances of trading accounts are not relevant for the assessment basis of the post-purchase rule.
Balance of the compliance account on 31.12. - Assessment basis (emission allowances)
Entitlement according to post-purchase rule (emission certificates) - 10% until 30.09.
While in example 1 the entitlement resulting from the post-purchase rule is distributed to three compliance accounts, example 2 shows a bundling of the emission certificates (and thus the assessment basis) in a single compliance account.
In principle, responsible parties have the possibility to plan the balances of the compliance account individually. Thus, it is conceivable that a company to which several individual responsible parties belong, bundles the quantities acquired in the regular sale of a calendar year on one compliance account instead of holding individual balances on the individual compliance accounts of the respective shareholders. The application of the post-purchase rule is stringently applied to the balance of each compliance account at the end of the year and thus determines the respective permitted post-purchase quantity for the respective compliance account in the following year. Here, there is room for maneuver for the companies to "bundle" the emission certificates on a single compliance account at the end of the year (as the assessment basis for the additional purchase rule). Third parties (e.g. intermediaries or trading departments of companies) can also participate in the post-purchase for responsible parties; in this case, the data of the responsible party for whom the purchase of emission certificates is made as well as his compliance account must be indicated. The purchase of emission certificates on the sales platform by responsible persons or third parties can in principle take place via a compliance or trading account.
For the surrender of emission certificates as of 30th September it must be ensured that the quantity of emission required for compliance is surrendered from the individual compliance account of a responsible person. I.e., if emission certificates were purchased by third parties, a timely transfer to the compliance account of the responsible party must be ensured before the surrender deadline.
Secondary trading can be established independently of the sell-off on the sell-off platform. In this context, transactions are possible between compliance and trading accounts as well as between trading accounts and compliance accounts. In principle, participants are free to purchase emission certificates in the establishing secondary market - also independently of the post-purchase rule.
Does the so-called 10% post-purchase rule only apply to purchases on the primary market?
Yes, there is only a limitation of sales in the primary market in the following year on nEHS certificates with the vintage of the previous year. In the current year the quantity of nEHS certificates with the vintage of the current year per sell-off is not limited.
Is the quantity of nEHS certificates held on a compliance account limited through the so-called 10% post-purchase rule?
No, the balance of the compliance account on 30.09. is not limited to the balance on 31.12. of the previous year +10%. Certificate inflows and outflows can take place on the compliance account, e.g. in bilateral trading, via intermediaries and/or internal company transactions.