Emission trading could start up late November
Sunday, October 16, 2005, 00:00
Hungary is expected to join the system of emission trading, already in operation in the European Union, from late November, the environmental minister announced on Thursday. Miklós Persányi blamed the delay on the EU for taking too long to approve Hungary's proposal on the government allocation scheme of carbon-dioxide credits. The emission trading scheme is a key part of the EU's efforts to meet its commitments under the Kyoto Protocol to cut greenhouse gas emissions.
Each participating country sets caps on the amount of carbon dioxide polluters can emit. Hungary's national allocation plan set the quota for greenhouse gas emissions at 93.7 mln tonnes for the period 2005-2007. The plan is that the government will distribute the carbon credits to the top environmental polluters free of charge to encourage them to join the system and will auction off a small portion of the credits. The 170 companies expected to be involved in emissions trading in Hungary include power plants, steelmakers, cement factories, refineries, ceramics, glass and paper makers. Under an amended company tax law, Hungarian businesses trading in carbon emissions units will be allowed to deduct from their tax base half of their income from such trading.