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NATIONAL ALLOCATION PLANS FOR THE EU EMISSIONS TRADING SCHEME PUBLISHED

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An interim report analysing the National Allocation Plans (NAPs) for ...
An interim report analysing the National Allocation Plans (NAPs) for

the EU Emissions Trading Scheme (EU ETS) submitted by other member

states to the European Commission (EC) was published today.

The research, funded by the DTI and Defra and carried out by

independent consultants ECOFYS, contains two levels of evaluation:

* high level evaluation focuses on progress towards meeting Kyoto

targets

* an assessment of the development of emissions detailed

evaluation against all the criteria in the Emissions Trading

Directive

The main conclusions are:

with some exceptions, the caps imposed by member states are below

the expected business-as-usual emissions other member states' NAPs

show that the EU ETS is not being used to bring industry emissions in

line with the reductions needed to meet Kyoto targets many NAPs have

little information to judge the basis on which allocation levels have

been made

The main conclusions echo previous concerns of DTI and Defra and

reiterate a call for the EC to be more transparent in how it has made

its own assessments of NAPs.

A copy of the report in full is available online at:

http://www.ecofys.co.uk and at

http://www.dti.gov.uk/energy/sepn/euets.shtml

Notes

Background to the EU ETS

1. Further information on the background to the EU ETS can be found

on the Defra website at:

http://www.defra.gov.uk/environment/climatechange/trading/eu/index.htm

European Commission's decision making process on NAPs

2. On 7 July 2004 the European Commission announced its decisions

on the first eight NAPs. Those of Denmark, Ireland, the Netherlands,

Slovenia and Sweden were accepted unconditionally while those of

Austria, Germany and the UK were accepted conditionally. For the UK

this means providing further information on the details surrounding

the operation of the new entrant reserve and on the quantity of

allowances to be allocated to installations in Gibraltar.

3. Further information on these decisions is available on the Europa

website at:

http://europa.eu.int/rapid/pressReleasesAction.do?reference=IP/04/862&format=HTML&aged=0&language=EN&guiLanguage=en

and

http://europa.eu.int/rapid/pressReleasesAction.do?reference=MEMO/04/44&format=HTML&aged=1&language=EN&guiLanguage=en

4. The second set of decisions by the European Commission is expected

in September 2004. Member States which may be covered in this set

are: Belgium, Estonia, Finland, France, Italy, Latvia, Lithuania,

Luxembourg, Portugal, Slovakia and Spain.

Kyoto Project Mechanisms (JI & CDM)

5. Joint Implementation (JI) and the Clean Development Mechanism

(CDM) are project based emission reduction methods which involve

developing and implementing projects that reduce greenhouse gas

emissions overseas, thereby generating carbon credits that can be

used in international emissions trading markets. Specific provision

is made in the rules of the EU ETS to allow the use of carbon credits

from JI and CDM projects. The UK Government has set up the Climate

Change Projects Office (http://www.dti.gov.uk/ccpo) to encourage UK

participation in CDM and JI projects.

Background on ECOFYS and tendering process

6. Ecofys specialises in energy saving and renewable energy

solutions. As part of the Econcern group, they offer research and

consultancy services as well as product development. Further

information on the company can be found at http://www.ecofys.com.

7. Ecofys were contracted to produce an analysis of the NAPs for the

EU ETS for 2005 to 2007 following an open tender process in

compliance with Cabinet Office guidelines.

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