Czech Republic to Appeal Emissions Cuts

The Czech Republic said Monday it would appeal cuts the European Commission made to how much carbon dioxide it can release from 2008 to 2012, making it the second EU nation after Slovakia to threaten court action over the emissions plan.

The European Union's executive arm reduced the Czech yearly limit by 14.8 percent below what Prague had asked for. At 86.8 million metric tons a year, this is still above actual 2005 emissions.

EU regulators made even deeper cuts to the Polish proposed maximum _ by more than a quarter _ but accepted France's proposed cap after Paris withdrew earlier plans for a higher limit.

The EU has said repeatedly that strict limits are needed for the emission permit program to work and create financial incentives for polluters that force them to release less greenhouse gas.

But the Czech trade ministry said the decision to cut its emissions cap did not take into account rapid economic growth.

"I'll inform the government Wednesday and one of my proposals will be to lodge a suit against the Commission's decision," Trade Minister Martin Riman said in a statement.

EU spokeswoman Barbara Helfferich had no comment. The Commission says the caps are fixed, meaning the only option the Czechs and Slovaks have is take regulators before the EU's court _ a process that could take many months.

Poland said it would analyze the EU decision before deciding on an appeal.

Last week, Warsaw said it needed a higher limit because its own forecast for growth is well above the EU's _ a yearly average of 6 percent from 2008-2012, compared to the EU's 4.5 percent maximum forecast for Poland. It also said it was unfair for the EU to use 2005, a warmer-than-average year, to calculate the cap.

The EU said Poland should aim for 208.5 million metric tons, 26.7 percent below what Warsaw wanted. The cap is also above Poland's actual 2005 emissions.

Poland is the EU's third-largest carbon polluter as it relies on its own plentiful supplies of cheap coal to generate almost all of its power. It had to cut output at its largest plant last year to meet the CO2 emissions target.

Helfferich told reporters earlier that the limit Poland had asked for was "way above" real releases. She rejected Polish complaints that this would hurt Poland's growth _ currently double the EU average _ saying officials took growth forecasts into account.

The EU will allow the country to release an extra 6.3 million tons compared to 2005.

Poland's CO2 emissions are rising as the economy speeds up. Preliminary estimates show that emissions from oil refineries and cement plants alone rose 20 percent on the previous year.

The EU has said repeatedly that strict limits are needed for the emission permit trading program to work and create financial incentives for polluters that force them to release less greenhouse gas.

The first stage of the emissions trading plan _ from 2005 to 2007 _ set many national limits far above real releases, meaning there was no real push for polluters to change their ways.

The Commission is determined to make trading work in the second round and has fixed mandatory limits far lower than many countries asked for.

For France, it said it would approve its suggested cap of 132.8 million tons once the government provides more information on new entrants to the program. Although France is the EU's third-largest economy, it is only the fifth major polluter because it relies on low-carbon nuclear power to generate most of its electricity.

The European Union has promised to reduce greenhouse gas releases by 8 percent below 1990 levels by 2012 under the 1997 Kyoto Protocol on climate change.

Source:By AOIFE WHITE AP Business Writer, chron.com