Norwegian Ministry of Finance to sell EU Emission Allowances through Barclays Capital




Norway is linked to the EU Emissions Trading Scheme (ETS). The allocation plan for Phase II of ETS (2008-2012) was adopted in March 2009. The total volume to be added to ETS by Norway is about 75 million EUAs (tons of C02), which is about 15 million EUAs annually. A total of 39 million EUA is allocated to Norwegian installations and 4.2 million to a New Entrants Reserve. The balance of 31.8 million EUAs will be sold in the market. In 2009 about 12.7 million EUAs will be offered in the market by the Ministry of Finance.

Following a public procurement process Barclays Capital (Barclays) has been awarded the mandate to conduct the sale in 2009. The Ministry of Finance has an option to make further sales through Barclays in the 2010 – 2012 period.

Starting on 18 May and ending on 13 November 2009, Norway will sell regular volumes of EUAs, on a daily basis,  through a combination of spot and December 2009 deliveries. At the outset 50 per cent will be sold on a spot basis; 50 per cent for December 2009 delivery. The allocation between spot and futures might be changed by the Ministry of Finance. In doing this, the Norwegian Government will achieve an average market price across 2009, in a cost efficient manner.

“Norway is a strong advocate of cap and trade systems and keen to contribute to the development of an efficient European market. Through outright sale of EUAs we are not only adding liquidity to the benefit of the whole market, we also reinforce that carbon has a cost. We aim at selling the Norwegian quota (EUAs) in a prudent and transparent way. By regular offering of EUAs on a daily basis we will not distort the market, and we achieve an average market price across the six month’ sale period. We are pleased to award the contract to Barclays and confident that Barclays will do this job in a professional manner in the best interests for the development of this rather young market,” Mr. Geir Axelsen, State Secretary of the Ministry of Finance says.


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