Portugal's industrial carbon cap curbed

Commission approves national allocation plan with 3.1 per cent cut in emission allowances

The European commission has ordered Portugal to cut by 3.1 per cent its proposed allocation of carbon trading allowances to industry for the second phase of the EU's emission trading scheme (ETS). The ruling means the commission has decided on carbon allocations for all 25 EU states that currently participate in the scheme.

Portuguese trading installations must receive no more than 34.8m tonnes of annually from 2008 to 2012, the commission said. This is 1.08m tonnes lower than the 35.88m proposed by Portugal's government. Earlier the government had foreseen an even bigger allocation (EED 08/11/06). The commission also ruled that the proportion of credits that can be bought through Kyoto protocol flexible mechanisms should be limited to 10 per cent of the overall allocation.

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