EU ETS backloading hinges on German election

By Andreas Walstad 10 January 2013 12:03 GMT

The European Council’s verdict on whether to delay the auctioning of 900 million allowances in the third phase of the EU’s Emissions Trading System (ETS) may not become clear until after the German elections in September this year, according to analysts.

Polls suggest the centre-left opposition to Chancellor Angela Merkel’s party has a good chance of winning January’s local elections in Lower Saxony. This would give it a significant boost ahead of this autumn’s national elections in which Merkel – of the centre-right party – will seek a third term. Germany’s Minister of Economics and Technology Philipp Rösler – a backloading opponent – could be squeezed out of parliament, while Environment Minister Peter Altmaier could gain more influence.