Germany submits free carbon permit request after dispute

07 January 2014 16:44 Source:ICIS

The largest free allocation request from an EU state – Germany – has now been submitted, the European Commission said on Monday.

Germany has handed in a base National Allocation Table (NAT) asking for 173m EU allowances (EUAs) for heat and industrial production in 2013.

The NATs lay out how many allowances each country can give out for free to industrial plants within its borders and is the first step in the process of allowances landing in carbon registry accounts.

In other cases, it has taken the European Commission around a month to decide on the NATs. This indicates German industrial plants could get free allowances ahead of having to hand in allowances matching their 2013 emissions on 30 April.

All of the 28 EU states apart from Croatia, Cyprus, Estonia, Finland, Luxembourg and Poland have now started the process to get free EUAs.

These missing nations make up just 100m out of a total of 887m free permits available to all EU countries.

Italy – with the second biggest industrial allocation at 90m EUAs – as well as Belgium and Romania also submitted NATs in the second half of December ( see EDCM 3 January 2013 ).

So far seven countries with requests approved by the Commission have confirmed that they have handed out the free permits to the industrial operators in their countries.

These countries – Austria, Greece, Ireland, Latvia, Netherlands, Sweden and the UK – make up 22% or 196m, of all free allowances.

Portugal has also had its request approved by the Commission, but has not confirmed whether these have been distributed.

Germany previously experienced a delay in the process because of a disagreement with the commission on how free allowances should be distributed fairly among the its steel producers ( see EDCM 3 October 2013 ). Ben Lee

By Ben Lee