EU to Start Legal Action over Late Emission Plans
Date: 11-Oct-06
Country: FINLAND
EU countries were meant to have submitted their allocation plans for the period, the second stage of the EU emissions trading scheme, to the European Commission by June 30.
But most were late and by Monday Oct. 9, only around 16 of the 25 EU members had done so.
Dimas told a news conference in Helsinki: "enforcement measures will be started in a few days."
The first stage of the legal action -- known as infringement procedures -- is to send a warning letter, and Dimas said he hoped that states will submit their plans without the need for further measures.
The emissions trading scheme is the EU's key instrument to reduce emissions of carbon dioxide (CO2) and meet climate change commitments under the Kyoto Protocol.
Under the scheme, governments set limits on the amount of CO2 -- one of the greenhouse gases widely blamed by scientists for global warming -- that companies may emit.
The trading scheme works by allowing participating firms to trade CO2 allowances on a market, buying credits if they overshoot their limits or selling them if they pollute less than they were allowed.
By law, the Commission has three months from the date of submission to approve or reject a country's plan.
It is under pressure to be strict with the next round after data from 2005, in the first phase of the scheme, showed most companies had received more CO2 credits than they needed, leading to a crash in carbon prices.
"We are going to be tough but fair when evaluating the plans," Dimas said.
