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German C02 emissions below quota, carbon prices dive

Posted on: Friday, 12 May 2006, 08:44 CDT

COLOGNE, Germany (Reuters) - Carbon dioxide emissions from top EU polluter Germany fell 26.3 million tonnes short of levels permitted under the bloc's trading scheme, an EU Web site said on Friday, sending carbon prices to a one-year low.

To link to the Web site please click on http://europa.eu.int/comm/environment/ets.

The European Union's executive body will report on Monday on the first year of the 25-nation bloc's emissions trading scheme, which sets limits on how much CO2 high-polluting industries may emit. It will release 2005 emissions figures for 21 countries.

The Commission had no comment on the data for Germany and other nations that appeared on the Web site before Monday's release date. The quotas are part of an EU trading scheme designed to reduce output of greenhouse gases in line with Europe's commitment to the Kyoto protocol.

The Web site showed Britain's emissions came in 31.3 million tonnes above its allocation. Spain was 9.1 million tonnes above quota and Italy was 5.66 million tonnes above target.

The Czech Republic, Portugal, Belgium and Hungary were all below quota.

European prices for carbon dioxide emissions fell to their lowest levels for at least a year. CO2 credits for December 2006 delivery fell 4.05 euros to a low of 8.6 euros a tonne, before rebounding to 9.25 euros.

The EU trading market sets a cap on total emissions by industries of CO2, which is widely blamed for global warming.

Companies that have allowances to spare can sell them on the market, while those that have more emissions than they do allowances must buy credits or face a fine.

The scheme is the EU's key instrument to meet climate change commitments under the Kyoto Protocol.

Source: REUTERS

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