Spain to Cut Free CO2 Emission Rights 20 Pct - Press
Date: 12-Jul-06
Country: SPAIN
La Voz de Galicia, the biggest newspaper in the northwestern region, said that industry would be allowed to emit between 140 million and 145 million tonnes of CO2 and other greenhouse gases a year.
It quoted sources as saying the new emissions plan, due to be presented by the Environment Ministry at 0900 GMT on Wednesday, would bring Spain in line with its Kyoto targets.
Spain failed to meet a June 30 deadline to tell the European Commission exactly how it would share out free greenhouse gas emission allowances between its contaminating industries in 2008-12, the second phase of the EU carbon trading scheme.
The scheme is the EU's cornerstone strategy to tackle climate change and help it meet targets under the Kyoto protocol to reduce global warming.
Spain's heavy industries, which account for some 40 percent of the country's total CO2 emissions, were assigned 173.2 million tonnes of CO2 permits in 2005 and actually spewed out 183.6 million tonnes, data from the Environment Ministry show.
Companies that exceed their quota have to buy rights in the carbon market to cover any excess or set up a clean energy deal in a non-Kyoto country to compensate. Carbon rights are now trading at around 15 euros (US$19) a tonne.
Spain was the worst performer among Kyoto member nations in 2004, with emissions 48 percent above the 1990 base year. In 2005 that rose to 53 percent, according to an estimate from Spanish trade unions and the environmental group Worldwatch.
The economy is still growing faster than the European Union average and Spain is allowed a 15 percent increase in emissions between 1990 and 2008/12 as a result, while overall the EU has to reduce its CO2 output.
