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"Realistic" EU emission allocations urged

Advisors to the European Commission on rules for distributing emission rights under a future EU climate trading scheme have warned governments against over-allocating allowances to firms on the assumption that other economic sectors will compensate by reducing their emissions further. Consultancies PwC and ECN say new market entrants should be forced to buy emission rights, while early emission abatement actions must either not be rewarded or accounted for according to very strict rules. The Commission issued preliminary guidance on national allocations plans last month (EED 02/04/03). See consultancy study.

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