(Adds detail, analysts)
OSLO, Oct 8 (Reuters) - Norway expects to sell 46.8 million carbon dioxide emission permits - known as EU Allowances (EUAs) - in 2019, after reaching a deal to join Europe’s common auction platform, the government said in its fiscal budget on Monday.
The sale could result in revenues of 6.7 billion crowns ($809 million), based on EU permit prices in summer 2018, when the prices averaged around 15 euros per tonne, it said.
Analysts at Refinitiv said the government’s price estimate was conservative given the EU’s benchmark carbon front-year allowances were already trading at over 22 euros per tonne.
At current prices, the sale could generate 9.8 billion crowns in revenues.
“While our price forecast assumes the unsold volumes will be distributed evenly over the 2019 auctions, as assumed in the budget proposal, we do not rule out the possibility delays in the final procedural steps for Norway to access the EU common auction platform,” analysts at Refinitiv said in a note to clients.
Refinitiv forecast carbon emission prices at 20 euros per tonne in 2019.
The Norwegian parliament still has to approve the country’s accession to the common auction platform.
Norway is joining the common auction platform along with two other members of the European Free Trade Association (EFTA), Iceland and Liechtenstein. The three countries haven’t auctioned any allowances accumulated over 2013-2018 so far. ($1 = 8.2853 Norwegian crowns) (Reporting by Ole Petter Skonnord, writing by Nerijus Adomaitis, editing by Gwladys Fouche and Susan Fenton)