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German court rejects case against DEHSt

16 Apr 2010 16:52:24 | edcm

The German court of first instance has rejected a claim by three power producers that the carbon registry, DEHSt, unjustly reduced the size of their allocation, the registry said on Friday.

The three utilities claimed that a methodology, used during phase I of the emission trading system (ETS) for calculating allocations for lignite-burning plants, was not reused in phase II. Had the lignite benchmark been used for the current trading phase, the utilities would have received an extra 40m EU allowances, the companies argued.

The court rejected the case on the basis that methodologies used in the first phase did not have to be reused in later phases.

Although the court of first instance has rejected the case, it could still be taken to a court of appeal. Other lignite-burning companies are also attempting to take DEHSt to court over the same matter, ICIS Heren understands. TMM

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