EU Commission approves Slovenia's carbon plan
Source: Reuters
(Adds background) By Jeff Mason BRUSSELS, Feb 5 (Reuters) - The European Commission approved Slovenia's proposed quota for carbon dioxide (CO2) emissions allowances on Monday, making it only the second country to get EU approval for its plan to fight climate change in 2008-2012. The European Union executive allowed Slovenia to allocate 8.3 million tonnes per year to industry in the second period of the bloc's emissions trading scheme. "Slovenia has proposed a sound national allocation plan which we have accepted with few changes," Environment Commissioner Stavros Dimas said in a statement. "The Slovenian government has clearly understood the need to ensure that the Emissions Trading Scheme remains a successful weapon for fighting climate change that others can emulate." Slovenia's is the 13th plan on which the Commission has ruled for the 2008-2012 period. Brussels has demanded cuts in the CO2 caps proposed by most EU countries so far, with only Britain being allowed to proceed with the quota it suggested. Slovenia, which has a population of 2 million people, accounted for less than 1 percent of the EU's emissions under the trading scheme in 2005. Brussels has come under pressure to create scarcity in the market for emissions permits after 2005 data revealed that EU states had given more allowances to industry than needed, leading to a crash in carbon prices for the 2005-2007 trading phase. The CO2 plans are the cornerstone of the European Union's Emissions Trading Scheme, the 27-country bloc's key tool for meeting commitments to reduce greenhouse gas emissions agreed under the Kyoto Protocol agreement to fight global warming. The Commission said its approval of Slovenia's plan was contingent on the country giving more information about how it treats new entrants to the scheme. It also said the EU would limit Slovenia's use of a mechanism which allows companies to get credit for carrying out projects to cut emissions in other countries. It said it would limit the use of these so-called "flexible mechanisms" under Kyoto to 15.7 percent of Slovenia's total allowance allocation from a proposed 17.8 percent. In October, Slovenia's government adopted the 8.3 million tonne annual quota, which it said was a cut in allowances of 9 percent compared to the first phase in 2005-2007. The Commission said the 8.3 million tonne figure was also lower than Slovenia's verified emissions in 2005. Dimas' spokeswoman, Barbara Helfferich, said on Monday the EU executive hoped to make a decision "very soon" on France's CO2 plan for 2008-2012. She also said Bulgaria and Romania, which joined the EU in January, had prepared CO2 plans for 2007, the last year of the first phase of the bloc's emissions trading scheme. Denmark and Cyprus have yet to submit their 2008-2012 plans to the Commission. The plans were due in June, but most member states turned them in late. (additional reporting by Darren Ennis)
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