Brussels, 15/05/2007 (Agence Europe) - On Tuesday, the European Commission concluded the assessment of Italy's national plan for allocating carbon dioxide (CO2) emission allowances for the 2008-2012 trading period of the EU Emissions Trading Scheme (EU ETS). It accepted Italy's national plan on condition that certain changes are made, including a reduction in the total number of emission allowances proposed. The cleared annual allocation is 195.8 million tonnes of CO2 allowances, 6.3% less than Italy had proposed.
NAPs determine for each member state the 'cap,' or limit, on the total amount of CO2 that installations covered by the EU ETS can emit, and specify how many CO2 emission allowances each plant will receive. The Commission is responsible for assessing member states' proposed NAPs against allocation criteria listed in the Emissions Trading Directive. The Commission may accept a plan in part or in full.
The assessment criteria seek, among other things, to ensure that plans are consistent (a) with meeting the EU's and member states' Kyoto commitments, (b) with actual verified emissions reported in the Commission's annual progress reports, and (c) with technological potential for reducing emissions. In this context, the Commission is requiring Italy to reduce its proposed cap by 13.2 million tonnes of CO2 equivalent per year, to 195.8 million tonnes. Other assessment criteria relate to non-discrimination, EU competition and state aid rules, and technical aspects. In this regard, the Commission is requiring further changes to Italy's plan concerning the following issues: - more information needs to be provided on how Italy will treat new entrants to the emissions trading scheme; - Italy needs to include combustion installations (e.g. chemical crackers) covered by all other member states in their allocation plans; - several intended ex-post adjustments must be eliminated; - the maximum overall amount of Kyoto project credits - credits from emission-saving projects carried out in third countries under Kyoto Protocol rules - which may be used by operators for compliance purposes, may not represent more than approximately 15% of its annual allocation. The Italian plan (21st NAP to be assessed by the Commission for 2008-12), will automatically be approved by the Commission as soon as Rome has proceeded to these modifications. (ol)