European Commission cuts CO2 emission caps of Poland, Czech Republic

The European Commission directed Poland and the Czech Republic to cut down their proposed limits on carbon emissions for 2008- 2012, saying strict limits are needed to be set and followed in order for the bloc's plans in this regard to be successful.

The Commission cut Poland's proposed CO2 emission cap by 26.7 per cent and the Czech's by 14.8 per cent. It set Poland's cap at 208.5 million tons per year during 2008-2012, while the Czech Republic's limit has been set at 86.8 million tons per year.

These are the latest measures adopted by the bloc in enforcing its emissions trading scheme intended to meet the targets set under the Kyoto Protocol.
Environment commissioner Stavros Dimas said the decisions taken are of vital importance to create the necessary scarcity in the European carbon market and to make the Emissions Trading Scheme a successful weapon for fighting climate change.

The Czech Republic has threatened to seek legal remedies against the decision. An official spokesperson said in Prague the decision to cut the cap did not take into account the economic growth achieved. He said the cut will hurt the country's economy and claimed the country was already meeting its Kyoto goals.

Poland said the cut will affect its economic development and energy security.

The Commission had cut down almost all the cap proposals submitted so far by the members of the bloc as 2005 figures showed that the national governments have allotted excess number of permits leading to a crash in carbon prices in 2006. Proposals from Britain, France and Slovenia have not been rejected by the Commission.

Under the EU emissions trading scheme, limits are set on the amount of CO2 that can be emitted by big factories. Companies that exceed their limits can buy permits from those whose emissions are below the limits.

At 208.5 million tons per year, the Polish plan is the third-largest assessed so far, after Germany and the U.K., a Commission spokesperson said.

Bulgaria is the only remaining country in the bloc yet to submit its plan.
Source: By Steve Walters, earthtimes.org