The broader REPowerEU plan seeks to raise €20bln from the monetization of EUAs, with 40% of volumes drawn from member state auctions and 60% from the Innovation Fund. On 27 March, the European Commission announced that the member state share will begin to be auctioned in July 2023 – amounting to an additional 16.5m EUAs auctioned between July and December.

The Innovation Fund volumes are more complicated, requiring an amendment to the Auction Regulation. In our 

, we presented a case in which the regulation revision process could take place this year, bringing up to 25m EUAs to the market in 2023.

Instead, pushing the auctioning of Innovation Fund volumes to 2024, confirmed after market close on 3 May, would mark a significant deviation from market expectations and add support for EUAs for the rest of 2023. The delay in auctioning has provoked a short-lived bullish market reaction, with the front year contract rising by approximately €5/t before the resumption of the current downward trend.

News

FuelEU Maritime and potential impact on the renewable gas market

Spanish GO Biweekly Update for Weeks 37-38: Stable Prices Amidst Decreased Domestic GO Activity

Italian September 2023 Auction witnessed very low demand

Week 38: RGGI regulators announce the next meeting for its Third Program Review 

Week 38: Muted market reaction to the announcement of the next regulatory meeting to update California’s cap-and-trade program

Spain to suspend Import/Export of Serbian GOs

Week 38: Despite negative media coverage, all VCM contracts appreciate

GO Week 38 Recap: 2024 contracts dancing at the 7 EUR edge

Week 38: Without clear fundamental direction, EUAs watch technical signals 

Week 38: KAU23 sales volume expands and turns downward. Tug-of-war between buying and selling is expected to continue for the time being

EP votes a mixed bag for biomethane - EBA

More ambition, fewer allowances: Towards a tighter future in the Western Climate Initiative 

EAC Market Report - In The Midst Of A Bullish Wave

A platform with real-time GO data and insights, reporting prices and market fundamentals for Wind, Hydro, Solar, Biomass, Biomethane and RGGOs. 

Our community offers access to webinars, discussions and updates from industry leading experts and analysts. 

The European Commission has confirmed that front-loaded REPowerEU volumes drawn from the Innovation Fund will not be auctioned before 2024. Reporting on this news initially prompted a bullish market reaction. 

Our Platform gives you unfettered access to price benchmarking, analytics, new and insights covering the green certificates markets. 

Request a trial now and someone from our team will be in touch with you to learn more about your involvement in the markets and to answer any questions you may have.

News

Update - REPowerEU funds from Innovation Fund to be auctioned from 2024

To read this article and explore our services, request a trial!

Related reading