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5 September 2008
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Commission tough on national CO2 emission plans[fr][de

Published: Wednesday 17 January 2007    | Updated: Friday 29 June 2007   

The Commission has told Belgium and the Netherlands to cut the number of permits that they give to industry to release CO2 into the atmosphere.

Showing his determination to make EU plans to fight global warming succeed, Environment Commissioner Stavros Dimas, on 16 January 2007, ordered Belgium and Holland to cap industry emissions of carbon dioxide to levels at respectively 7.6% and 5.1% below what their governments had asked for. 

The Commissioner said that he wants to send a "strong signal" that Europe is committed to the success of its Emissions Trading Scheme (ETS) and intends "to create the necessary scarcity in the European carbon market". 

Figures published by the Commission in May 2006 revealed that that some governments had set targets above their level of emissions during the first stage of the ETS, from 2005 to 2007. Massive surplus allocations were left on the market, sending carbon prices plummeting so low that companies had no real incentive to cut CO2 emissions (EurActiv 16/05/06). 

In November 2006, he had already criticised nine other member states for setting allowances too high, asking them to cut grants for the second stage of the scheme, between 2008 and 2012, by an average of 7% (EurActiv 29/11/06). 

With traders expecting the Commission to take the same tougher line against Belgium and the Netherlands, the decision has not yet had an upward effect on carbon market prices, instead causing phase two prices to fall slightly as some had been expecting the Commission to take an even harder line. 

The fight against climate change could get even tougher in the future, after the Commission last week presented proposals to cut greenhouse gases by 20% by 2020 compared with 1990 levels (EurActiv 11/01/07). Germany, which currently holds the EU Presidency, has already announced its support for an even higher goal of 30%. 

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