Ireland’s emissions plan accepted by EU Commission

IRELAND was among the first EU countries to have its emissions trading plan under the Kyoto climate control accepted by the European Commission yesterday.

Plans from just five of the EU's old 15 members were accepted unconditionally and this included Ireland, while the plans of three others including Germany and Britain have been told to make technical changes.

The plans outline the amount of carbon dioxide energy-intensive industrial plants, such as electricity generators and cement manufacturing, are allowed to emit. CO2 or greenhouse gasses are blamed for global warming.

Environment Commissioner Margot Wallstrom said: "Today's decision is a crucial step as it clears the way for almost half of the plants which will be part of the Pan European emissions trading system. The decision shows that we are serious about our climate change policy and that we can start the emission trading the first of January next year as planned."

Environment Minister, Martin Cullen, welcomed the Commission's approval of Ireland's plan. "The Commission's decision is a positive endorsement of what is a balanced outcome. Environmental protection is maximised with a structure in place to protect industrial competitiveness", he said.

Yesterday's decision clears over 5,000 of an estimated 12,000 plants in the EU 25 and they will receive over 40% of the allowances expected to be put into circulation.

Under the plan each plant will be allowed emit a specific quantity of CO2 and if they go above this they will have to purchase the quantity.

Industry has warned this will push up the price of electricity and goods.

The allowance is expected to cut emissions by 8% over the next six years.

The Kyoto Protocol is designed to cut emissions of carbon dioxide and five other gases by 5.2% of their 1990 level over the next four to eight years.

The trading in the allowances which can be bought from companies or countries that do not use up their full allowances is due to begin in the EU in January.

However, industry says that since the US and Russia has not adopted the Kyoto Protocol and will not be enforcing emissions limits on its industry, European industry will be in an unfair competitive situation. They are calling for a complete review of the way Kyoto is implemented in the EU.