27 Jul
2006 - Brussels, Belgium – Almost one month after
the 30 June deadline, only five European countries
— Germany, Poland, Lithuania, Estonia and Ireland
— have submitted the second phase of their EU
Emissions Trading Scheme national allocation plans.
Nine other countries (Belgium,
Bulgaria, France, Latvia, Netherlands, Portugal,
Spain, UK and Italy) submitted draft plans, while
11 countries have not taken any step yet to comply
with the EU Directive.
“Not only the delay, but the
weakness of most of the national plans show that
European countries are underestimating the urgent
need to fight climate change," said Delia
Villagrasa, an emissions trading expert with WWF's
European Policy Office.
“Weak plans with flawed allocation
methods fail to provide incentives for European
industries to invest in clean technology and dramatically
cut CO2 emissions."
With the UK, Germany, Italy,
Spain and Poland emitting together nearly three-quarters
of all EU greenhouse gases, only Italy and Spain’s
draft plans are the most ambitious as they propose
the biggest cut in the number of emission allowances
— 13 per cent and 16 per cent respectively.
While the European Commission
has suggested that the number of emission allowances
in the second phase (2008–2012) be on average
6 per cent lower compared to the first phase (2005–2007),
the UK’s cap was reduced only by 2.9 per cent
and Germany’s by 3.4 per cent. Poland, however,
increased its cap by 17 per cent.
"EU countries are also
running away from their own responsibilities by
encouraging industries to buy carbon credits delivered
by projects in developing and transition countries,"
added Villagrasa.
Spanish industries, for example,
will be allowed to compensate 50 per cent of their
emissions in this way, and Polish industries 25
per cent, while British, Italian and German approximately
10 per cent.
According to WWF, this option
should be used only up to 3 per cent of the allocations
for each installation and if the cleanest and
best projects are used. Otherwise, buying cheap
credits from overseas could divert the attention
from the need to reduce emissions domestically.
Another weak point of the national
allocation plans is related to the way permits
are allocated to industries. Instead of benefiting
from the possibility to auction up to 10 per cent
of emission allowances, most countries just award
them free of charge or use a system benefiting
the most polluting technology.
"Auctioning has the potential
to push further emissions reductions and create
revenues for other protection measures against
climate change," said Villagrasa.
However, Germany, Italy and
Spain are not planning any auctioning. Poland
plans to auction only 1 per cent of its allowances,
while the UK plans to auction up to 7 per cent.
END NOTES:
• Under the EU Emissions Trading Scheme (ETS)
Directive, European countries are required to
present to the European Commission their National
Allocation Plans (NAPs) for the second phase of
the ETS by 30 June 2006. The Commission will accept
a NAP within three months of its submission, with
all final decisions taken by 31 December 2006.
The second phase of the Emissions Trading Scheme
will run from 2008 until 2012.
Delia Villagrasa / Claudia Delpero
