By Henrietta Billings - 20th October 2004
The EU emissions trading scheme is set to "start as planned" in January following the acceptance of a further eight national CO2 emission allocation plans.
With 80 days left until the formal opening of the scheme, the European Commission has cleared allowances for 2100 plants - 15 per cent of an estimated 12,000 plants in the EU25.
The emissions trading directive forms the core of EU efforts to reach Kyoto Protocol targets to cut greenhouse gas emissions by eight per cent of the 1990 levels by 2012.
Six of the plans, from Belgium, Estonia, Latvia, Luxembourg, Slovakia and Portugal were accepted unconditionally on Wednesday with France and Finland's approval on condition that technical changes are made.
"Today's decision is another key step towards the start of the European emission trading scheme in less than 80 days," said environment chief Margot Wallstrom.
"I am pleased that a number of member states have amended their plans to fulfil the criteria and will be ready to start trading in January 2005."
"Today's decisions again show the importance of the commission's role in ensuring the integrity of the scheme and consistency between the decisions taken in the different member states."
France's allocation is subject to a 1.5 million per year reduction of allowances over a three year period.
National allocation plans outline the number of C02 emission allowances that governments can allocate to energy-intensive industrial plants, so that they can take part in the trading scheme.
Under the proposals championed by Wallstrom, greenhouse gas emissions in the energy and industry sectors will be cut at the least cost to the economy and help national governments meet their emission targets agreed under the 1997 Kyoto protocol.
Each member state will be granted an emissions quota to be divided and traded between around 10,000 national companies, meeting 46 per cent of the EU Kyoto targets.
The scheme allows governments to freely allocate 95 per cent of the allowances to emit carbon dioxide and companies who do not use up all their allowances have the option to sell them to companies with difficulties keeping their emissions within allocated allowances.
The main industries affected include power generators, steelmakers, glass and cement manufacturers but a review clause has been added to the new law to look at possible extensions to the chemicals, aluminium and transport industries.
In July this year, Brussels cleared another eight plans related to 5,000 plans representing 40 per cent of the expected allowances.
A total of 24 plans have now been submitted, and a further eight are under review by the commission.
The only country which has not yet submitted a plan is Greece, home country of the incoming environment chief Stavros Dimas.
The commission has concluded assessments of Austria, Belgium, Denmark, Estonia, Finland, France, Germany, Ireland, Latvia Luxembourg, the Netherlands, Portugal, Slovakia, Slovenia, Sweden and the UK.
The assessment of Cyprus, Czech Republic, Hungary, Italy, Lithuania, Malta, Poland and Spain is ongoing.
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