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Europe „prepared” to accept Germany's boost in emission imports

Germany, Europe's biggest producer of greenhouse gases, said the European Commission is prepared to accept its proposal to boost the use of imported emission credits in the five years starting 2008.

Germany asked the European Commission last month to almost double the Kyoto Protocol credits the country uses, in addition to the emission permits Germany will grant factories and power plants. The commission regulates the EU's trading system, the world's biggest. „All the discussions we've had with the commission in the past few weeks show the commission is definitely prepared to accept the proposal,” said Sigmar Gabriel, Germany's environment minister, in an interview. RWE AG, Europe's biggest producer of carbon-dioxide pollution, this month backed the German government proposal. The imported credits cost about a fifth less than EU permits. Germany would be allowed to import credits amounting to 20% of the permits allocated to industry, instead of the 12% the German government had proposed earlier. Negotiations are continuing on the commission methodology for setting Germany's yearly permit grant at 453 million metric tons a year in the five years, Gabriel said. Germany wanted an average baseline of two years to three years used, rather than a single year of 2005, he said. (Bloomberg)