The Czech Republic approved a plan to set the annual limit in the next phase of the EU's emission-trading system at 101.9 million tons of carbon-dioxide, 4.4% above the existing limit.
The government approved the size of the limit for 2008-2012 late yesterday, Industry and Trade Ministry spokesman Tomas Bartovsky said in a phone interview. The proposal, which sets out the number of tradable permits, was raised from 97.6 million tons a year for 2005-2007. It was a result of a compromise between the Industry Ministry, which wanted a higher cap, and the Environment Ministry.
The ministries said the cap is in line with the economy's economic growth of more than 6% and the nation's growing demand for electricity, generated mostly by coal and nuclear power. The ceiling and the manner in which the permits will be distributed among companies has yet to be approved by the European Commission. (Bloomberg)