EU Publishes Rules Enabling Sales From $3.6 Billion CO2 Reserve

The European Union published rules enabling the transfer of carbon-dioxide permits from a 2.6 billion-euro ($3.5 billion) reserve to the European Investment Bank, which will then sell the allowances. EU permits fell as much as 4.9 percent after the measure was posted today in the official journal. That allows the EU to transfer as many as 300 million post-2012 allowances from the so-called NER300 reserve even before a registry to track them becomes fully operational. The European Commission, the EU regulatory arm, said earlier this month it aims to deliver the permits “swiftly” after the regulation enters into force the day following its publication. The 27-nation EU decided in 2008 to use proceeds from the reserve for new entrants to the cap-and-trade program to encourage renewable energy and carbon-capture technologies. The Luxembourg-based EIB, which must start selling the allowances within one month from the delivery, signaled in October that sales may begin this year and could last beyond 2012. Every permit carries the right to emit one metric ton of CO2.