Brussels, 09/01/2006 (Agence Europe) - The European Commission has just published guidance to help Member states when they draw up national plans for allocating greenhouse gas emission allowances for the period 2008-2012. This period is significant because it coincides with the first commitment period of the Kyoto Protocol on Climate change. The EU anticipated this by setting up, earlier than required, a Community scheme for trading greenhouse gas quotas, which has been in operation since 1st January 2005, as an experiment to test one of the Protocol's “flexible mechanisms”. Trade among companies in emission quotas is one of the market tools which cuts the cost of reducing greenhouse gases and completes the national efforts to reach the reductions levels assigned to industrial countries by the Kyoto Protocol.
The guidance issued by the Commission is concerned principally with the presentation of information, setting caps, the scope of a Community emissions trading scheme and definitions. Standardised information: for greater transparency and easier implementation of national plans, the Commission proposes a set of standardised tables for Member States to use to present important information such as projected emissions, assumptions regarding fuel prices and reductions expected from other policies and measures. Setting caps: the Commission signals its intention to look very closely at the overall policy mix that Member States propose in order to achieve their targets. It also offers a consistent methodology for Member States to set caps for their emissions. Each national plan establishes total quantity of CO2 which can be emitted by the installations covered by the system and the number of emission licences allocated to each individual installation. Scope and definitions: the Commission addresses the types of combustion installations that should be covered by the Community emissions trading scheme, particularly with regard to the situation of small installations which emit relatively low amounts of CO2 per year.
30 June is the deadline for Member States to notify their national plans to the Commission. On the same date, the Commission will report on experience gained during the experimental period of the emissions trading scheme and make proposals as appropriate. Preparations for the review are ongoing at the Commission.