Berlin achieves compromise over CO2 emissions
Germany´s federal ministries of economics and the environment have agreed on a draft CO2 emissions allocation plan, ending months of political bickering.
Under the draft allocation plan, which is subject to inter-ministerial and parliamentary approval, the industrial and energy sector will have to reduce 10 million tons of CO2 out of a total of 17 million tons by 2012 in order to meet the Kyoto target. The remaining 7 million tons in reductions will have to be achieved by private household and the transportation industry.
In the first phase of the EU emissions rights trading scheme (2005-2007), the industrial and energy sector will receive a total of 503 million tons in CO2 emissions allowances, requiring an average reduction of 2.2%.
“A tailor-made allocation of emission rights as requested by the industry will not take place,” environment minister Jürgen Trittin said in a statement, emphasising that the obligation to cut emissions will take effect immediately with the launch of the trading scheme. In the second phase, between 2008 and 2012, allowances will be reduced to 495 million tons, subject to review in 2006.
Concerning the replacement of old plant with new installations, the draft suggests a transition period. It would allow plant operators to keep certificates for four years after the replacement and exempt them from emissions reduction obligations for 14 years. Very old, inefficient plants will face additional emission reduction obligations in the second trading phase, intended to create as an incentive for modernisation.
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