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State to sue EC over CO2 limits

Government calls cuts to industry carbon dioxide credits unfair

May 30th, 2007 issue

The government will sue the European Commission (EC) for what it calls an unfair cut to the amount of carbon dioxide credits Czech companies can emit, despite opposition from the Green Party.
“Above all, it was [Industry and Trade Minister Martin Říman] who was pushing for the lawsuit, even though the main responsibility” for compliance with the EC’s allocation of emission limits lies with the Environment Ministry, said Tomáš Bartovský, spokesman for the Industry and Trade Ministry.
“The lawsuit is a serious matter that does not in fact concern the quota as such, but the principles of EC decision-making,” he said.
The government’s vote to sue came after a special meeting May 25, and was made almost simultaneously with the Polish government’s decision to also launch a lawsuit against the EC. Slovakia filed a similar complaint in February.
In March, the EC decreased the Czech Republic’s CO2 emissions allowances for the 2008–12 trading period from 102 million to 86.8 million metric tons — 14.8 percent less than the country proposed.
The EC’s figure was based on the country’s 2005 emissions, which were 82.5 million metric tons, and then adjusted for expected economic growth.
Minister Říman has said the decision disregards the country’s rapid economic growth, which may result in higher emissions.
The EC used “inaccurate data and trivial formula calculations” to determine the country’s emissions allowances, said Bartovský.
“The EC has chosen its own way of calculating the allocation for each member state, even though this task is entrusted to member states by an EU directive,” he said.
In response, the Environment Ministry has assaulted the figures of the Industry and Trade Ministry.
“The ministry claims that electricity consumption in the upcoming years is expected to grow by 3 percent yearly, although the power producer ČEZ, as well as other analyses, predict only 1 percent growth,” Environment Minister Martin Bursík told Hospodářské noviny.
Meanwhile, the EC quota assumes that Czech emissions will increase by up to 1 percent, but the country’s emissions have recently grown by 0.5 percent each year, he said.
“We don’t expect there’s much chance the Czech Republic will succeed with this lawsuit,” said Jakub Kašpar, spokesman for the Environment Ministry.
Moreover, the lawsuit may stretch to three years, and until it is resolved the Czech Republic must comply with the EC’s decision, said EC spokeswoman Barbara Helferich.
The lawsuit must be ready by June 5. The Czech Foreign Affairs Ministry will then file it with the European Court of Justice.
— Hela Balínová contributed to this report.


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