Poland and Czech Republic to sue over CO2 caps[fr] 

According to Poland and the Czech Republic, the Commission's proposed CO2 limits are "discriminatory" and will prevent their industries from catching up with those in western Europe. A particular point of contention is the method by which the Commission calculated the limits, and the Czech Republic claims that it was "never consulted" by the Commission on "the method used to calculate 2008 emission levels, nor the data used for this calculation". 

The Czech Republic is basing its decision to commence legal proceedings on an analysis of the Commission's decision by Czech Industry and Trade Minister Martin Riman, who said in a statement: "I am convinced that the European Commission has damaged the Czech Republic through its complicated model of calculation and false data when allocating emission allowances."

In February, Slovakia became the first EU member state to begin legal proceedings against the Commission. Finland and Latvia have expressed their support for Slovakia, Poland and the Czech Republic, and Hungary has indicated that it will also begin its own legal proceedings. 

Under the EU-ETS, member states propose national allocation plans with CO2 emissions limits for their industries. The Commission then publishes decisions for each member state's plan. The latest series of allocation plans cover the period 2008-2012.

In March, the Commission reacted to the allocation plans of Poland and Czech Republic, saying that it would accept the plans under the condition that a number of changes are made, "including a significant reduction in the total number of emission allowances proposed by each member state". According to the Commission, Poland and the Czech Republic's emissions allowances are much higher than acceptable: 26.7% and 14.8% respectively.  

The Commission is standing behind its decision, and expressed confidence that the decisions "will hold up in any court challenge".