12 countries issue CO2 permits before deadline

Twelve European countries have so far allocated permits to emit carbon dioxide to their industry ahead of Saturday's deadline, the European Union's executive Commission said on Wednesday. The countries are Belgium, Czech Republic, Estonia, Germany, Latvia, Luxembourg, the Netherlands, Slovenia, Slovakia, Sweden, Britain and Finland, a press officer for the environment commissioner Stravros Dimas said.
Prices for EUAs are currently below 10 euros a tonne and the market fears prices may dip even further if Poland issues its 2008 and 2009 allowances at the same time, flooding the market with over 400 million EUAs. (Source: Reuters)

The EU's emissions trading scheme caps how much carbon dioxide (CO2) industries may emit and establishes a system for trading emissions permits called EU Allowances (EUAs).
The Commission decides how many permits each member of the 27-nation bloc is allowed to distribute to its industry. Each country needs the Commission's approval before it can issue any permits.

Last year only two countries met the Feb. 28 deadline, which hindered physical, spot trading.
Hungary, Bulgaria, Cyprus and Poland still had not issued their EUA allocation for 2008, the Commission said.
Hungary, Bulgaria and Cyprus did not hand over their documentation to the Commission until the end of last year.
"Regarding Poland, the notification was also late and there are still some clarifications needed," the press officer said, adding they related to the country's national allocation plan.

Prices for EUAs are currently below 10 euros a tonne and the market fears prices may dip even further if Poland issues its 2008 and 2009 allowances at the same time, flooding the market with over 400 million EUAs.
Saturday is the deadline for all EU member states to allocate EUAs to more than 10,000 European energy-intensive installations in 2009, the second year of the second trading cycle of the EU emissions trading scheme running from 2008-12.