Italy takes first step to hand out free carbon allowances

03 January 2014 16:23 Source:ICIS

The Italian government has taken the first step to be able to hand out free allowances to industrial plants in the country. At 90m EUAs, Italy would have the second largest free allocation in the bloc.

The national Italian committee for managing the EU emissions trading directive has now submitted its national allocation table to the European Commission, it said in late December.

It normally takes the Commission around a month to analyse the table, indicating Italian industry could get hold of its free allowances in February.

That would raise the number of industrial allowances cleared by the commission to 297 from 207 currently.

Only eight countries have so far got the commission’s green light to hand out allowances to industry.

Latvia’s environment ministry said on Friday the country had allocated its 2.9m share of free EU allowances (EUAs) to industrial plants.

The free permits were allocated on 21 December 2013, said Helena Rimsa from the climate and environmental policy department of the ministry.

This brings the confirmed total of allocated allowances to around 83m, as the Netherlands, Austria and Ireland have also handed out allowances to industrial plants ( see EDCM 2 January 2013 ).

Four more countries – Greece, Portugal, Sweden and the UK – have got the greenlight from the commission to allocate allowances, but have not yet confirmed if they have done this ( see EDCM 18 December 2013 ).

Prices could start to fall as more industrial plants receive their allowances and become potential sellers. Ben Lee and Silvia Molteni

By Ben Lee