EU tells Poland, Czech Republic to cut emissions quotas

The European Commission on Monday told Poland and the Czech Republic to slash greenhouse gas emissions quotas on their energy intensive industries but accepted French plans.

The European Union's executive arm said that it could accept the Czech and Polish plans to allocate tradeable emissions quotas only if they cut their proposed cap for the 2008-2012 period.

The quotas are the cornerstone of the EU's innovative emissions trading system, under which industrial polluters can buy and sell unused credits.

The system is supposed to help the EU cut carbon emissions under the Kyoto Protocol, but its credibility has taken a beating recently because member states have allotted more permits to pollute than industrial plants need.

The commission said that Poland's carbon dioxide quotas should not exceed 208.5 million tonnes, 26.7 percent lower than Warsaw has proposed, while the Czech Republic was told that its CO2 quotas should not exceed 86.8 million tonnes, 14.8 percent lower proposed.

The commission accepted France's CO2 quota capping emissions allowances at 132.8 million tonnes, but only after Paris withdrew an original plan for 155.6 million tonnes.

The commission has already approved 17 member states' national allocation plans for the 2008-2012 trading period, mostly conditional upon reductions.

Source:eubusiness.com