Green light for emission plans

By Anna McLauchlin

Date: 16/12/04

The European Commission is expected to give the green light on Wednesday (22 December) to five more member states' emission allocation plans. Spain, Lithuania, Malta, Cyprus and Hungary will be able to buy and sell carbon emissions under the trading scheme that will officially be launched in January, bringing the total number of member states involved to 21.

Environment Commissioner Stavros Dimas has confirmed that the other four will not join in January. Somewhat embarrassingly for the Greek commissioner, his own country has failed to submit an allocation plan while Poland, Italy and the Czech Republic have handed in their plans, but there will not be time to assess them.

According to the Commission, companies in these countries will be at a disadvantage, because although they cannot make money via the trading scheme, they are still obliged to monitor their emissions from 1 January, without knowing how much CO2 they are allowed to emit.

The EU's emissions trading scheme aims to cut greenhouse gas emissions across Europe by forcing 12,000 installations, such as power stations and steelmakers, to pay for the right to pollute.

National allocation plans lay out how much CO2 governments will allow their companies to emit in 2005-07. If a company manages to cut its emissions, it can make money by selling the surplus to a company elsewhere which is exceeding its allowance.

According to Oslo-based carbon research group Point Carbon, the market is currently worth €350 million and is expected to grow to €10 billion by 2007.

The European Commission is expected to give the green light on 22 December 2004 to five more EU Member States' emission allocation plans. Spain, Lithuania, Malta, Cyprus and Hungary will be able to buy and sell carbon emissions under the trading scheme that will officially be launched in January 2005, bringing the total number of Member States involved to 21.