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German industry fears over emission trading

German industry's competitiveness stands to suffer considerably as a result of the EU greenhouse emission trading scheme, German chemical association VCI has charged. At a parliamentary hearing on the government's national allocation plan, VCI officials complained that the plan was "more stringent than necessary". They also expressed concerns that the German plan earmarked only 0.6% of allowances for a new entrant reserve compared with 2-8% by other EU governments. Senior European Commission officials have also identified over-large new entrant reserves as a potential problem with national allocation plans (EED 13/05/04).

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