18.11.2010 Official Journal of the European Union L 302/1 (Non-legislative acts) REGULATIONS COMMISSION REGULATION (EU) No 1031/2010 of 12 November 2010 on the timing, administration and other aspects of auctioning of greenhouse gas emission allowances pursuant to Directive 2003/87/EC of the European Parliament and of the Council establishing a scheme for greenhouse gas emission allowances trading within the Community (Text with EEA relevance) THE EUROPEAN COMMISSION, Having regard to the Treaty on the Functioning of the European Union, Having regard to Directive 2003/87/EC of the European Parlia- ment and of the Council of 13 October 2003 establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61EC (), and in particular Articles 3d(3) and 10(4) thereof, Whereas: Directive 2003/87/EC was revised and amended by Direc- tive 2008/101/EC of the European Parliament and of the Council of 19 November 2008 amending Directive 2003/87[EC so as to include aviation activities in the scheme for greenhouse gas emission allowance trading within the Community (2) and Directive 2009/29/EC of the European Parliament and of the Council of 23 April 2009 amending Directive 2003/87EC so as to improve and extend the greenhouse gas emission allowance trading scheme of the Community (}). One of the improvements determined in the revision of Directive 2003/87/EC was that auctioning should be the basic principle for allocation, as it is the simplest and generally considered to be the most economically efficient means of doing so. The efficiency of () OJ L 275, 25.10.2003, p. 32. () OJL 8, 13.1.2009, p. 3. () OJ L 140, 5.6.2009, p. 63. the emissions trading scheme relies on a clear carbon price signal to achieve abatement of greenhouse gas emissions at least cost. Auctioning should support and strengthen such a carbon price signal. Article 10(1) of Directive 2003/87/EC requires Member States to auction allowances covered by Chapter III of that Directive not allocated free of charge. Thus, Member States must auction allowances not allocated free of charge. They may not use any other means of allocation, nor could they withhold or cancel allowances not allocated for free instead of auctioning them. Article 10(4) of Directive 2003/87/EC lays down various objectives for the auctioning process. It should be predict- able, in particular as regards the timing and sequencing of auctions and the estimated volumes of allowances to be made available. Auctions should be designed to ensure that small and medium-sized enterprises covered by the emis- sions trading scheme have full, fair and equitable access, that small emitters are granted access, that participants have access to information at the same time, that partici- pants do not undermine the operation of the auctions, and that the organisation of and participation in the auctions is cost-efficient avoiding undue administrative costs.