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Hungary distributes 2007 emissions allocation

The government has distributed Hungary's 2007 emissions allocation, comprising 30,514,000 credits, to 216 companies, adviser at the Ministry of Environmental Protection and Water Management Ágnes Kelemen said on Thursday.

The emissions credits were distributed free of charge, but they have a combined market value of about Ft 7 billion, calculating with a per-credit price of around €0.9, Kelemen said. The credits may be traded. Kelemen added that companies have until the end of April to use last the credits allocated for 2006, giving them an opportunity to trade credits from both 2006 and 2007 in the next two months.

The credits were issued as part of an EU-wide scheme to reduce carbon dioxide emissions to levels outlined in the Kyoto Protocol. Each credit allows the emission of one ton of CO2. The credits are allocated to big emitters of greenhouse gases, such as refineries, steel makers and cement companies. Under the Kyoto Protocol, Hungary has committed to reducing its carbon emissions 6% by 2012 compared to the period between 1985 and 1987.

Hungary emitted a total 121 million tons of emissions during the base period. But, in 2003, because of the number of big polluting industrial plants shut down after Hungary's switch to a multi-party democracy and the opening of its market, the country emitted just 83 million tons of CO2, already 32% less than the base period. (Bloomberg)