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Post an EU jobThe European Commission has told Poland and the Czech Republic to significantly lower the CO2 limits imposed on their industry for 2008-2012, sparking a row with Warsaw and Prague.
The second phase of the European Emissions Trading Scheme (2008-2012) is aimed to coincide with the deadline to meet the targets set out in the Kyoto Protocol on global warming.
National Allocation Plans (NAPs) determine a limit on CO2 that each member state projects to emit, specifying amounts for each individual plant covered under the scheme. Industries covered by the scheme include power generation including oil refining, iron and steel, glass, cement, pottery and bricks.
The Commission is responsible for assessing the NAPs submitted by member states and may accept or reject them according to a set of predefined criteria.
The Polish NAP was accepted by the Commission on 26 March on condition that it is slashed to 208.5 million tonnes (Mt), or 26.7% down from the 284.6 Mt originally sought by Poland.
The Czech plan was accepted with similar conditions, with Brussels requiring a 14.8% cut in projected emissions, down to 86.8 Mt from the 101.9 Mt originally requested by the government.
With total emissions above 200 Mt, the Polish plan is the third-largest assessed so far, after Germany and the UK, said Commission spokesperson Barbara Helfferich.
In the same series of decisions, Brussels said it had accepted the proposed French NAP with an overall emissions cap of 132.8 Mt for 2008-2012. The French had withdrawn their plan at the last minute in November 2006 after the government realised that the proposed cap of 155.6 Mt would likely face rejection.
European carbon markets hailed the Commission's move with prices for a tonne of CO2 for delivery in 2008 closing at €17.50 on the European Climate Exchange on 23 March, its highest level since the beginning of the year.
The Commission said that it has assessed a total of 17 plans out of 26 notified so far. Bulgaria is the only remaining EU country that has still not notified its plan.
Poland protested at the Commission's decision, saying that it would impose on its economy, which relies on coal for more than 90% of its electricity production. "This decision is very hurtful for us and there is a large chance that we will take it to the European Court of Justice," a government source told Reuters.
The Czech Republic voiced similar concerns. "In no case the ministry will appease to a number below 90," said Tomas Bartovsky, a spokesman for the industry and trade ministry.
But Polish accusations were rejected by Commission Environment spokesperson, Barbara Helfferich who said Poland's proposal was "way above" its 2005 verified emissions.
"We do not take the Polish argument that we have treated Poland in a discriminatory way. On the contrary, our first goal in assessing these plans is to be sure that no country has an advantage or a disadvantage over any other country," Helfferich said.
In a statement, Environment Commissioner Stavros Dimas said: "The Commission will continue to assess all national plans in a consistent way and to create the scarcity in allowances that is essential for the scheme's success and for meeting Europe's Kyoto targets."