By IPS Correspondents
BRUSSELS, Jul 7 2004 (IPS)

The European Union is taking legal action against some member states over their failure to act over carbon dioxide emissions.

European Union (EU) environment commissioner Margot Wallström said Wednesday she has sent written warnings to Greece and Italy for failing to deliver their plans to cut greenhouse gases by the Mar. 31 deadline.

These countries are now almost four months late in getting their emissions trading plans to the European Commission, the EU executive.

The plans have to outline the amount of emission allowances that member states intend to allocate to their industries.

On the same day the European Commission accepted eight national allocation plans for emission allowances.

Five plans from Denmark, Ireland, the Netherlands, Slovenia and Sweden have been accepted unconditionally. A further three from Austria, Germany and Britain have been approved on the condition that technical changes are made, which would make them automatically acceptable.

Wallström said she was “disappointed” with the response to the scheme from some member states.

“While I am pleased that the Commission was able to approve a first batch of eight national allocation plans today, I am disappointed that some member states are slow in taking the measures necessary to ensure a smooth start of emissions trading next year,” she told media representatives Wednesday.

“If the EU wants to retain its leadership in fighting climate change, it can best demonstrate its determination through the emissions trading scheme, and all member states need to be on board,” she added.

The Commission says the emissions plans are “an important weapon in the fight against climate change.”

In a bid to reduce greenhouse gases, the EU is planning to launch the world’s first multinational emissions trading scheme by January 2005.

The scheme follows the EU’s promise of cutting greenhouse gas emissions by 8 percent of 1990 levels between 2008 and 2012. This is in accordance with the EU’s commitment to the Kyoto Protocol even if the agreement does not come into force.

Under the scheme companies will be able to buy and sell carbon dioxide emissions allowances. Each government would be given allowances for its companies, which they could trade.

Companies that exceed their allocations will be forced to buy extra allowances from ‘cleaner’ companies or face heavy fines. To the cleaner companies the sale can mean extra income.

Some 12,000 European steel factories, power plants, oil refineries, paper mills, and glass and cement installations will be offered emission quotas.

The European Commission has taken no view on the price of allowances. That will be negotiated between the buyers and sellers.

The European Commission says these flexible mechanisms aim to meet the global emissions reduction targets in a “cost-effective way” while “transferring technology to the developing countries.”

A company can gain allowances by selling clean technology to developing countries even though the reduction in pollution comes elsewhere.

The scheme builds on the Clean Development Mechanism (CDM) and Joint Implementation (JI) created by the 1997 Kyoto Protocol.

JI projects allow governments to conduct emission-reduction projects abroad and can be undertaken in other industrialised countries that have quantitative emissions reduction targets under the Kyoto Protocol. CDM projects can be hosted by developing countries that have no quantitative targets.

Wednesday’s acceptance of eight national plans clears more than 5,000 plants in the estimated 12,000 in the EU’s 25 member states.

Wallström said it demonstrated the bloc’s commitment to the scheme.

“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,” she said.

However, WWF, the global conservation organisation warns that the current plans allowing significant increases in emissions allow industry to contribute further to global warming.

Stephan Singer, head of WWF’s European climate and energy policy unit says the first round of plans was weak due to government inaction and powerful industry pressure.

The plans reflect “short-term, narrow-minded political concerns and ignore the wider European and global view,” he said. “This has led to business-as-usual allocations and weak targets.”

WWF is also urging the European Commission and all European governments to learn from the “domestic wrangling” on emissions allowances.

“The current chaos may be a blessing in disguise,” Singer added. “The pilot phase of emissions trading will allow the European Commission and member states to learn from their mistakes. Eventually, the European emissions trading could be a model for the rest of the world to follow.”

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