Information on the Emission Allowance Auction Instrument (EKII)

The Emission Allowance Auction Instrument (EKII) is the state budget program of the Republic of Latvia.

The EKII aims to contribute to the prevention of global climate change, adaptation to the effects of climate change and the reduction of greenhouse gas (GHG) emissions, for example through:

• improving the energy efficiency of buildings in both the public and private sectors;
• the development and deployment of renewable energy technologies; and
• implementing integrated solutions to reduce GHG emissions.

EKII is financed from the auctioning of state-owned European Union Emission Allowances and European Union Aviation Emission Allowances, which takes place in accordance with Commission Regulation (EU) No 1031/2010 of 12 November 2010 on the auctioning of greenhouse gas emission allowances timetable, administration and other aspects in accordance with Directive 2003/87/EC of the European Parliament and of the Council establishing a scheme for greenhouse gas emission allowance trading within the Community.

The operation of the EKII is regulated by the approved legal acts, incl. Law “On Pollution” (in force since 01.07.2001) and Cabinet Regulation No. 657 of 25 September 2012 “Procedure for Auctioning Emission Allowances Allocated to Latvia”, which prescribe the procedure for auctioning EUAs allocated to Latvia.