Brussels approves carbon dioxide emissions plan

The European Commission has approved Ireland's carbon dioxide emissions trading plan for 2005-07 after the Government agreed …

The European Commission has approved Ireland's carbon dioxide emissions trading plan for 2005-07 after the Government agreed to make a number of last-minute changes to its original proposal.

The plan will allow the Government to allocate emissions allowances to individual companies, which may then trade their allowances on the open market.

The total level of emissions allocated must be within the limit for carbon dioxide emissions allocated to Ireland under the Kyoto Protocol, which aims to reduce global warming by cutting the emissions of the chemicals believed to cause it.

The Commission approved Ireland's plan unconditionally after the Government agreed to cut the total level of emissions allocated by 180,000 tonnes a year to 22.32 million tonnes a year. The Government also agreed to prevent unused allowances for planned developments to be used for existing installations.

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The Minister for the Environment, Mr Cullen, welcomed the Commission's decision and claimed that he had resisted a demand from Brussels for a bigger cut in the total level of emissions. "The Commission's decision is a positive endorsement of what is a balanced outcome. Importantly, environmental protection is maximised with a structure in place to protect industrial competitiveness."

The Commission yesterday approved plans from four other states - Denmark, the Netherlands, Slovenia and Sweden - and approved plans from Austria, Britain and Germany on condition that changes are made.

The Environment Commissioner, Ms Margot Wallstrom, described the decisions as a crucial step towards fulfilling the EU's responsibilities under the Kyoto Protocol. "The decision shows that we are serious about our climate change policy and that we can start emission trading on the first of January next year as planned," she said.

The Commission also said final written warnings had been sent to 11 of the old 15 EU member-states for not having transposed into national law the EU directive on emissions trading.

Mr Cullen said Irish industry would now be best placed to participate in the emerging carbon market in a manner that best protected its competitiveness, while maximising overall environmental performance.

"Emissions trading is an important market mechanism for the EU in the fight against climate change and in meeting our Kyoto obligations. It provides access for participants to least-cost emissions reductions and creates a direct incentive for the achievement of reductions through energy efficiency improvements, cleaner energy, cleaner technology, and changes in production and processes," he said.