Brussels, 25/05/2005 (Agence Europe) - On Wednesday, the Commission conditionally accepted Italy's plan for allocating CO2 emission allowances to Italian companies for the 2005-2007 trading period, notified by Italy in August 2004 under the Emissions Trading Directive 2003/87/EC establishing a scheme for greenhouse gas emission allowance trading within the Community that came into force on 1 January 2005, ahead of the implementation of the Kyoto Protocol establishing a world carbon trading scheme, foreseen for 2008.
The Italian allocation plan covers 1,240 installations, all of which qualify for trading. They will be allocated allowances to emit an annual average of 232.5 million tonnes of CO2 for the 2005-2007 trading period. The Commission accepted the plan after the Italian authorities agreed to lower significantly the total number of allocation by 23 million tonnes of CO2 annually or 9%. When first published, environmental NGOs described Italy's plan as a 'joke' because it was far too generous to heavy industry and energy (see Europe No. 8765).
Italy will also have to notify further details of its allocations to specific installations and to abandon a provision to make a so-called ex-post adjustment to the plan. Ex-post adjustments, which involve revising the number of allowances allocated to individual installations after a plan has been finalised, are not compatible with the directive and the Commission is asking Italy to drop the remaining provision for these in its plan.
The only national plan left for the Commission to approve is the Greek plan, but this is in the pipeline. Once approved, the EU carbon trading system (which started with 21 Member States) will be able to operate at full power.