Due to the the rapid build-up of the surplus of emissions allowances, the European Commission presented a formal proposal to revise the auction time profile and delay ("back-load") the auctioning of 900 million allowances in the third phase of the EU ETS starting next year. In addition, it adopted a report on the state of the European carbon market which sets out a range of possible structural measures that can be taken to tackle the surplus.

The European Commission proposed to revise the auction time profile and delay ("back-load") the auctioning of 900 million allowances in the third phase of the EU ETS starting in 2013. The objective is to address the growing supply-demand imbalance of emission allowances in the EU emissions trading system (EU ETS). According to the Commission, the surplus of emission allowances has primarily built up because the economic crisis has reduced industrial emissions of greenhouse gases by more than anticipated, leading in turn to lower demand for allowances from businesses. On 13 November, MEPs discussed the future of the EU emissions trading with Climate Action Commissioner.

Moreover and with the same objective, the Commission approved a report on the state of the European carbon market which sets out a range of possible structural measures that can be taken to tackle the surplus. This carbon market report outlines a shortlist of six options and invites stakeholders to express their views.

The EU ETS currently covers about 11,000 industrial installations and some 40% of the EU's emissions. From this year the aviation sector is also covered. In the third phase, emissions from industrial and power installations have to be cut to 21% below 2005 levels by 2020.