German court action over emissions trading

Germany has initiated legal action against the European Commission over its refusal to allow the government to make "ex post" adjustments to numbers of CO2 allowances after the start of the EU emissions trading scheme in January. The German government threatened the move earlier this month (EED 07/09/04). It argues that scope for adjustment is needed to prevent over-allocation. The Commission counters that it would in fact bring no environmental benefit. The two sides could still resolve the dispute through negotiations. See German environment ministry press release.

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