In 2005, the European Union (EU) introduced a union-wide greenhouse gas emission trading scheme, core to which are national allocation plans (NAPs) drawn up by individual member states. NAPs are required for each trading period, with governments deciding on the total number of allowances to be created for the period and on the distribution of these allowances to individual plants.
Investors in and operators of greenhouse gas installations – installations which fall under the scope of the 2003 European Commission (EC) Directive establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61/EC (the EU Emission Trading Scheme (ETS) Directive) – are worried. And they should be. At the beginning of last month, the EC adopted all 27 decisions relating to member states’ NAPs for the 2008-12 period. Most of the EC’s NAP decisions require member states to introduce changes to their NAP, whether in the total quantity of allowances or in other allocation provisions. According to the measures given in the decisions, member states need to implement such changes “in a non-discriminatory manner and notify the Commission as soon as possible, taking into account the timescale necessary to carry out the national procedures”. Belgium was also one of those member states that had to reduce the total quantity of allowances for the upcoming 2008-12 period.
