Is there any guarantee that the price of allowances won fall sharply during the third trading period?
No price level can be guaranteed in a free market, but the proposal intends to make market conditions as predictable as possible and to minimise instability due to changes to the EU ETS. The sharp fall in the allowance price during the first trading period was due to over-allocation of allowances that could not be “banked” for use in the second trading period. For the second and subsequent trading periods, member states are obliged to allow the banking of allowances from one period to the next. Therefore, the end of one trading period is not expected to have any impact on the price.
- If the fall harvest price option is selected, will the revenue guarantee increase if the fall harvest price is greater than the projected harvest price?
- Are there measures in place to ensure that the price of allowances won fall sharply during the third trading period?
- How are the spare parts supplied within the guarantee period?
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