Brussels, 01/12/2005 (Agence Europe) - The Commission has closed its inquiry opened in December 2004 on the Slovenian system for reducing taxation on carbon dioxide emissions in favour of cogeneration plant operators who take part in the EU emissions trading system, as well as companies that conclude voluntary environmental agreements. Following changes made by the Slovenian government in a new law adopted in May 2005, the Commission noted that this system was compatible with Community rules relating to State aid and to environmental protection systems. Under the changed system, the tax reduction will only be granted if there is “sufficient” reduction in carbon dioxide emissions and will be on a sliding scale, a press release notes. The rate of reduction will be 43% in 2005, 35% in 2006, 27% in 2007, 19% in 2008 and 11% in 2009. Furthermore, urban heating installations benefit from a 26% reduction in 2005, falling 8% per year.