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Reuters EU Unlikely to Sue States Over CO2 Plans - Official

Date: 03-Aug-06
Country: BELGIUM

The European Union's executive arm said on Tuesday it sent letters to 14 EU states that have not turned in their new carbon dioxide emissions (CO2) plans, which were due on June 30, pressing them to submit details within a month.

The next step, a "letter of formal notice", would be the beginning of legal proceedings that the Commission can take against states for breaking EU laws, a process that can end in front of EU courts.

But a Commission official said despite their tardiness, most member states were working on their plans, which make up the cornerstone of the EU's efforts to fight climate change and meet Kyoto Protocol emissions reduction goals.

"In most cases we see goodwill on the part of member states," the official, who did not want to be named, told reporters. "We do not expect that there will be letters of formal notice."

The National Allocation Plans (NAPs) outline how much CO2 industries in each EU state can emit in the 2008-2012 period.

The official said some plans may come late enough that it would not be possible to make a decision on them by the end of 2005, but he said that would not be a major problem.

"Even if it's January or February, it would not be a catastrophe if it's just a few (plans)," he said.

He said he expected the Commission to make a decision on the majority of the plans by the end of this year. EU rules stipulate that the Commission has three month to approve or reject the plans once they are submitted in full.

He declined to comment on the content of the plans the Commission is currently assessing.

The EU emissions trading scheme sets limits on how much CO2 high-polluting industries can emit. Companies must buy CO2 allowances if they pollute above their limit, or they can sell extra permits if they come in below their targets.

The Commission, which can accept or reject the plans, is expected to be tougher on the 2008-2012 plans than it was on plans for the 2005-2007 period after 2005 data showing a surplus of CO2 credits led to a crash in carbon prices.

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