Joint IETA, EFET, Europex and ISDA open letter to the Climate Change Committee Members and Experts on Brexit safeguard measures

Brussels, 15 November 2017 | In an open letter to the members and experts of the Climate Change Committee, the International Emissions Trading Association (IETA), the European Federation of Energy Traders (EFET), Europex and the International Swaps and Derivatives Association (ISDA) have expressed their views on the draft regulation amending the EU ETS Registry Regulation (Regulation No 389/2013). This draft regulation aims to implement safeguards to protect the EU ETS from potential negative effects of a hard Brexit. It aims at marking and making ineligible for compliance EU ETS allowances issued by the United Kingdom from 1 January 2018.

IETA, EFET, Europex and ISDA are concerned that the proposed safeguard measures will have significant negative consequences on the functioning of the emissions forward markets (existing OTC contracts for both forwards and options with delivery dates from 1 January 2018), by creating uncertainty with regard to delivery of allowances issued by the UK in 2018 and in the first quarter of 2019.

Please read the full open letter below.