The U.K. is to hold its first auction of carbon trading allowances under the European Union Emissions Trading System on Nov. 19, the government said Thursday.
The U.K. will be the first country in the E.U. to hold an auction in Phase II of the E.U. ETS.
"Auctioning carbon allowances will create greater incentives for companies to reduce emissions and provide stability and transparency in this emerging market," Treasury Exchequer Secretary Angela Eagle said in a statement.
The E.U. ETS sets a cap on the total emissions from the main industrial sectors across Europe, covering more than 10,000 installations in the energy and industrial sectors.