EU Urges States to Simplify Emissions Trading Plans
Date: 10-Jan-06
Country: BELGIUM
The European Union's 25 nations must submit plans to the EU executive by June 30, spelling out how much carbon dioxide (CO2) - the main gas blamed for global warming - industrial factories in their countries may emit.
The Commission has the power to approve or reject the plans, based on how well they fulfil Kyoto targets to reduce polluting gases that heat the earth.
The so-called National Allocation Plans are part of the EU's landmark emissions trading scheme, which kicked off last year for its first trading period, 2005-2007.
"Experience with the first round of National Allocations Plans (NAPs) covering the 2005-2007 trading period has shown that such plans need to be more transparent and easier to implement," the Commission said in a statement.
The Commission sent guidance to the states on how to achieve that, it said.
"It also offers a consistent methodology for member states to set caps for their emissions," the Commission said.
The Commission said it would "look very closely at the overall policy mix" that member states intend to implement to achieve their pollution reduction goals, including their planned use of the emissions trading system.
The NAPS determine how much C02 may be emitted in a given country and the number of allowances - essentially certificates for the right to pollute - that each installation covered by the scheme receives.
Under the scheme, companies that overshoot their targets can buy credits on a market, and those that come in below can sell their extra allowances, creating an economic incentive to cut back on polluting gases that scientists say heat the earth.