This item was published during the term of a previous administration that ended in April 2007
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UK National Allocation Plan
06/05/2004
The UK National Allocation Plan (NAP) under the EU Emissions Trading Scheme (EU ETS) was published today following its submission to the European Commission on April 30.
The NAP sets out how greenhouse gas emission allowances will be allocated to affectedUKindustry sectors for the first phase of the scheme running 2005 to 2007.
It is accompanied by a consultation document to which responses are invited by June 4.
Around 100 energy intensive Scottish installations covering almost 50% of carbon dioxide emissions will be part of the scheme.
The EU ETS is the most significant measure in the EU Climate Change Programme. It will begin on January 1, 2005. Its objective is to reduce EU emissions of CO 2 cost-effectively.
The overall number of allowances to be allocated for the first phase of the EU ETS is intended to deliver reductions consistent with an overall reduction (including measures in theUKand Scottish Climate Change Programmes) inUKcarbon dioxide emissions of 15.2% by 2010.
This moves theUK beyond itsKyototarget and towards the domestic goal of moving towards a 20% reduction in carbon dioxide emissions on 1990 levels by 2010.
Environment Minister Ross Finnie said:
"It is clear that climate change poses a very serious threat to our planet. Scotlandwill be impacted directly and will feel the effects of impacts on other countries. If we are to avoid the worst impacts of climate change we must increase our effort to reduce carbon emissions.
"The Executive is fully committed to working with the UK Government on policies to reduce these emissions. Our Climate Change Programme, which we will shortly be reviewing, seeks to include everyone in the fight against climate change.
"I welcome our contribution to the EU Emissions Trading Scheme as an important element of the EU's climate change policy. It will deliver real emission reductions in the sectors covered by the scheme and will do so cost-effectively."
Emissions projections contained in January's draft NAP were interim. Following consultation, the projections have been updated and as a result the overall level of allowances has changed since January.
The key elements behind this are revised estimates for certain sectors, revisions to existing measures in the Climate Change Programme (including the recent Energy Efficiency Implementation Plan) and other modelling revisions, for example, relating to assumed fossil fuel prices.
The allocation principles in the NAP have not changed, withUKindustry still required to reduce emissions beyond theUK'sKyotocommitment.
The government has made a firm commitment that allocation in Phase 2 of the Scheme will be consistent with industry's contribution to achieving theUK's domestic goal of reducing carbon dioxide emissions by 20 per cent by 2010.
Energy intensive industries, such as electricity generators, oil refineries and manufacturing plants, accounting for around 50 per cent ofUKcarbon dioxide emissions, are included in the EU ETS. These industries - 1,100 installations across theUK, of which 100 are inScotland- and all other interested parties have been consulted at various stages in the process of drawing up the NAP.
Member States were required to submit NAPs (setting out the total number of emission allowances to be allocated to affected industry) to the European Commission byMarch 31, 2004. The principles for setting the total level of allowances allocated toUKinstallations were agreed by Ministers and are not now negotiable with industry.
TheUK's draft NAP was subject to a wide public consultation and its submission to the Commission was delayed to allow industry comments to be taken on board. While government takes all EU responsibilities and deadlines seriously and is fully supportive of the EU ETS, it has a responsibility to consider the complex issues raised during consultation and decided to delay submission to account for this.