Carbon Trading Conference in Dublin.

Friday October 03, 2003 00:53

by Barry O'Donovan

A 'consultative workshop' is due to take place somewhere in Dublin on Friday 3rd October to outline to the largest polluting industries how Irelands share of the industrialised worlds right to pollute will be divvyied up.

The Environmental Protection Agency(EPA) has been given the task of devising Irelands National Allocation Plan, the document which is required from each member state by the EU before the EU Emissions Trading Scheme comes into effect in January 2005. The emissions trading scheme along with Joint Implementation(JI) and the Clean Development Mechanism(CDM) is part of the Kyoto Protocol 'flexible mechanisms'. Put simply each country agreed to limit its C02 equivalent emissions to some level relative to 1990 pollution levels. In Irelands case emissions by 2008 should not exceed 113% of the 1990 level.

Ireland now emits at least 130% of its 1990 pollution level and thus faces a very difficult task meeting its obligations. This is where the JI, CDM and emissions trading come in. The EPA will draw up a plan to allocate Irelands polution rights amongst the various sectors of the economy: transport, industry, agriculture, etc. Those companies whose pollution levels will exceed their allocations would then be able to buy further pollution rights from countries who emit less pollution than they have been allocated. These countries may include Russia whose economy (and thus pollution levels) has collapsed since 1990 or The Netherlands who have implemented huge programs of renewable energy generation. Alternatively heavy polluters can pay to have emissions reduced in the developing world (or anywhere which involves lower costs) and then use the credits gained to continue polluting at home.

The meeting which is taking place in Dublin is part of Irelands preparation for the implementation of the emissions trading marketplace and is one of the proceedures to be carried out in accordance with the Common Position agreed in March 2003. Amongst these proceedures are the following:

The allocation of emissions allowances constitute state aid and thus should not interfere with competition although how the allowances are divided up is to be decided by individual governments but must be ratified by the Commission.

Initial emissions allowances may only be allocated to sectors covered by the scheme but must ensure a reasonably fair share out between sectors participating in the scheme and the rest of the economy and also ensure that access to allowances does not prevent new entrants from competing in a particular market sector.

The allocation plan needs to be published to allow the general public to express comments prior to a decision being taking on allocating the allowances.

Thus in keeping with the letter of these proceedures the 'consultation workshop' takes place at an undisclosed location: "The location is not relevant as this is not a public meeting" attended by a select and partisan group: "Attendance is limited to representitives of the 10 sectors as listed in Annex 1 [of the Common Position] and is by pre-registration only" with no press or public briefing on the outcome although a future public consultation is planned for sometime "early in the new year" (Quotations from EPA Project Manager Ken Macken 1/10/03).

Some of the documents detailing all this are:
The Common Position:
http://europa.eu.int/eur-lex/pri/en/oj/dat/2003/ce125/ce12520030527en00720095.pdf

Implementation of the Common Position
http://europa.eu.int/comm/environment/climat/030401nonpaper.pdf