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Schmitt-Rady, Bettina --- "A Level Playing Field? Initial Allocation of Allowances in Member States" [2006] ELECD 429; in Peeters, Marjan; Deketelaere, Kurt (eds), "EU Climate Change Policy" (Edward Elgar Publishing, 2006)

Book Title: EU Climate Change Policy

Editor(s): Peeters, Marjan; Deketelaere, Kurt

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781845426057

Section: Chapter 5

Section Title: A Level Playing Field? Initial Allocation of Allowances in Member States

Author(s): Schmitt-Rady, Bettina

Number of pages: 15

Extract:

5. a level playing field? initial allocation
of allowances in member states
Bettina Schmitt-Rady1

1. iNtroDUCtioN
the launch in Europe of the largest domestic cap-and-trade carbon market on
1 January 2005 requires a level playing field between competing companies
that needs to be supportive of the long-term environmental and economic goals
of the European Union (EU). the European Commission (the Commission)
emphasized this need from the very beginning of the development of the
European-wide emissions trading scheme (EU Ets). the allocation of Co2
allowances to the almost 12,000 installations concerned and the corresponding
mechanisms are key factors in implementing the EU Ets. the economic value
of the allowances allocated in the first trading period amounts to well over
100 billion at current market prices.2 those installations affected which feel
that they have been placed at a disadvantage by the initial allocation in their
home countries have already initiated legal actions before the European Court
of First instance (CFi) and before their respective national courts. Hence,
Commissioner stavros Dimas is aware that `we need to have a serious look at
the way we allocate'.3
the purpose of this chapter is to have an initial look at the chosen method
of allocation as set forth in Directive 2003/87/EC of 13 october 2003, which
establishes a scheme for greenhouse gas (GHG) emission allowance trading
within the Community4 (the Et Directive), in particular in annex iii to the Et
Directive, and the national transposition ...