EPA announces provisional allocations to major emitters of Greenhouse Gases

Date released: Feb 22 2005

The EPA today released details of the final National Allocation Methodology 2005–2007 which defines the basis on which allocations of greenhouse gas emission allowances will be made under the Emissions Trading Directive.

The methodology was prepared on the basis of the National Allocation Plan approved by the European Commission on 7 July 2004 and published for public comment on 30 Sept. 2004.

As a result of the submissions received from the public and industry, and after consultation with the Minister for Environment, Heritage and Local Government, a number of changes have been included in the methodology. These changes relate primarily to how the allowances set aside for new entrants are to be divided.  Details of the submissions received can be found on the EPA web site at www.epa.ie/whatwedo/ETU

Provisional Allocation Decision

The EPA has also released a Provisional Allocation Decision based on the above methodology which proposes to allocate the available 66,960,000 tonnes of CO2 allowances for the first Emission Trading period from 2005-2007 in the following manner.

Recipient Allowances
Installations permitted before 31/03/2004  65,007,007
New Entrant Set Aside 1,004,400
CHP Set Aside 446,400
Auction 502,193
Total 66,960,000

This provisional decision also describes in detail how the 65,007,007 allowances are to be allocated to over 100 individual operators of installations to whom the EPA issued a greenhouse gas emissions permit. These include power plants, cement works and other large industrial and commercial sites.

The complete Provisional Allocation Decision can also be found on the EPA web site at www.epa.ie/whatwedo/ETU

 

Notes to Editor

The Emissions Trading Directive requires that companies be issued with a cap on the amount of CO2 they are allowed to emit in any year. Companies with emissions above the cap must either abate their emissions or purchase allowances to meet their requirements, while companies whose emissions are below the cap may trade their excess. It is possible that some companies, particularly in the power generation sector, may have to purchase some additional allowances to meet their emissions during this first phase of the scheme. Penalties of €40 per tonne of CO2 are in place for those who do not hold allowances equal to their emissions at the end of each year.