Commission publishes carbon trading exemptions

Greenpeace press release

Commission publishes carbon trading exemptions - will Poland get a free ride?

Brussels, 29 March 2011 – A European Commission paper published today outlines the conditions to exempt power plants from paying for carbon permits under the EU’s emissions trading scheme (ETS) after 2012. Greenpeace has commissioned an independent analysis that casts doubt over the legality of Poland’s plans to claim exemptions for some of its new coal power stations.

Under EU legislation[1], power plants in some Central and Eastern European countries may exceptionally receive free emission allowances until 2019 if the “investment process was physically initiated” by the end of 2008. According to media reports and leaked letters to the Commission, the Polish government has stated that this would apply to almost 15,000 MW [2] of new coal power capacity, including projects where a building permit has not yet been granted.

The Commission’s paper published today says EU countries should prove that an investment has been “physically initiated” with evidence of "visible" construction work, subsequent to explicit approval by national authorities. Poland, one of Europe’s most coal-dependent countries, considers investments to be “physically initiated” when “preparatory works” begin on a construction site, even without a building permit.

However, according to a legal analysis by Jendroska Jerzmanski Bar & Partners Environmental Lawyers, Polish law does not allow “preparatory works” to be conducted without first obtaining a building permit. The analysis argues that a building permit is essential for any major construction on a new site and on the site of existing power plants.

Greenpeace climate and energy campaigner in Poland Julia Michalak said: “The European Commission must not allow Poland to bend the rules to wriggle out of its obligations. Poland has a real potential for energy savings and renewables and there is no reason it should get a free ride on efforts to cut back coal.”

ENDS

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