A European Union proposal to auction all carbon dioxide perm its rather than hand some out for free would cost Germany 113 billion euros($175.6 billion) in the eight years through 2020, according to industry group VIK. Both industrial and household consumers would bear the cost as energy providers raise tariffs to counter higher permit prices, VIK spokesman Roland Schmied said. Business clients would shoulder87 billion euros of the burden, while households would contribute 26.3 billion euros, he said. The European Commission in January proposed forcing power producers to buy all the permits they need in auctions, providing an incentive to shift to cleaner generation. The EU carbon programme is the world's biggest greenhouse-gas trading market. Its third phase, for which rules aren't yet set, starts in 2013. Allowances to release carbon diox-ide will become more expensive as the number of available permits decreases amid rising demand for power, Schmied said. Emitters will increasingly struggle to find projects that generate carbon credits for their use he said.