EC Accepts Carbon Allocation Plans but Requires Adjustments

The European Commission has accepted Poland, France and the Czech Republic’s national plans for allocating CO2 emission allowances for the 2008-2012 trading period of the EU Emissions Trading Scheme. The commission has, however, required each country to make amendments to their plans, which, according to euroactiv.com, has sparked contention.

The EU Emissions Trading Scheme (EU ETS) was implemented with the aim of reducing carbon emissions from plants in the energy and industry sectors, and helping countries to meet their emission commitments under the Kyoto protocol. National allocation plans (NAPs) determine a limit on the emissions that each country estimates it will produce.

Regarding the Czech Republic and Poland, the commission is asking for a significant reduction in the total number of emission allowances. The European Commission (EC) said that the cleared annual allocation of CO2 allowances for the Czech Republic is 86.8 million tons, 14.8% lower than proposed, while for Poland it is 208.5 million tons, 26.7% lower than proposed.

Euroactiv reported that Poland, which uses coal for over 90% of its electricity generation, has objected to the EC’s decision. The publication also cited a government source as telling Reuters that Poland may take the case to the European Court of Justice. The Czech Republic has reportedly voiced similar concerns.

Euroactiv reported the commission’s environment spokeswoman, Barbara Helfferich, as saying: “We do not take the Polish argument that we have treated Poland in a discriminatory way. On the contrary, our first goal in assessing these plans is to be sure that no country has an advantage or a disadvantage over any other country.”

The commission also accepted France’s allocation plan on the understanding that the country provides more information on how it will treat new entrants to the emissions trading scheme. France’s proposal is for emissions equivalent to 132.8 million tons of CO2. France withdrew its initial allocation plan in November 2006 as the figure was too high.

The EC commented that it has now assessed 17 national allocation plans.