The framework for future phases of EU ETS are currently under discussion and as such the final structure for auctioning in future phases has not yet been decided. The revised EU ETS directive is due to be finalised later this year.
The amount of revenue from auctioning in Phase 111 of the EU emissions trading scheme will be influenced by the market price of carbon at the time of the auctions. The Government do not comment on carbon price, as it would be improper for Government to speculate on how the market will function in the future.
(2) what proportion of the revenues generated by auctioning of allowances from the second phase of the EU Emissions Trading Scheme will be spent on (a) research and development for renewable energy, (b) carbon capture and storage development and (c) energy efficiency improvements.
The framework for future phases of EU ETS is currently under discussion and as such the final structure for auctioning in future phases has not yet been decided. The revised EU ETS directive is due to be finalised later this year.
Any revenue raised through the use of auctioning would be considered part of general revenue streams, and the spending review process ensures that resources are allocated efficiently to deliver Government objectives.
Comprehensive spending review 2007 launched the domestic Environmental Transformation Fund (ETF) of over £400 million. Budget 2008 announced the full allocation of funding under the ETF, including offshore wind, carbon capture components, wave and tidal, hydrogen fuel cells and microgeneration, as well as support for energy efficiency in small businesses, households and the public sector.