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EC final decision received regarding the national allocation plan for environmental pollution allowances



The Ministry of Environment Monday received the decision of the European Commission of the 13th of July regarding the national allocation plan for the allocation of greenhouse gas emission allowances, which Lithuania requested to revise by increasing the annual quantity of carbon dioxide emissions for the period 2008-2012 to 11.017 million tons.

With its decision of the 13th of July the European Commission left intact the annual rate adopted by the previous decision to allocate tradable emission permits to Lithuania for 8.851 million tons.

Based on the European Commission’s argumentation, such a decision was adopted having regard to the growth of Lithuania’s Gross Domestic Product (GDP) and the consequences of the decommissioning of Ignalina Nuclear Power Plant (INPP). Assessments of the European Commission were carried out using the PRIMES computation model.

However, the European Commission considered Lithuania’s proposal and increased the quantity of tradable emission permits, which can be used to implement joint implementation projects, from 8.9 to 20 per cent.

Before the 21st of August, the Ministry will furnish the Governmental Strategic Planning Committee with allocation alternatives for tradable emission permits in respect of specific Lithuanian companies. Undersecretary of the Ministry of Environment Aleksandras Spruogis says that the Governmental Strategic Planning Committee should agree to one of the several proposed alternatives for the allocation of such permits. The Strategic Planning Committee should also decide whether Lithuania will bring an action before the Court of Justice of the European Communities regarding the decision of the European Commission.

Lithuania requested, as was provided in the submitted 2008-2012 national allocation plan for greenhouse gas emissions, that the European Commission allocates the annual average of 16.59 million tradable emission permits to Lithuanian businesses within the five coming years. However, in November 2006, the European Commission adopted the decision to make a twofold reduction on the number of permits. The European Commission made such a decision on the basis of computations of actual gas emissions in Lithuanian in 2005 applying the PRIMES computation methodology, which is commonly used for all EU Member States. According to these computations, not only Lithuania, but also other Member States were allocated fewer tradable emission permits than requested.

Lithuania asked to revise this decision having regard to the country's exclusive situation: rapid economy growth, peculiarities of some industries such as cement, fertiliser production and petroleum refining, and problems relating to the decommissioning of the Ignalina Nuclear Power Plant. Another unfavourable factor for Lithuania is that allocation of the 2008-2012 quota for tradable emission permits is solely based on the 2005 situation, which does not reflect the actual status.

Public Information Division, Tel. 266 3659

16 July 2007

Minister of Environment of Lithuania Kęstutis Navickas
Minister of Environment of Lithuania Kęstutis Navickas