This item was published during the term of a previous administration that ended in April 2007
Listen
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.