The European Commission has demanded across-the-board cuts in emissions rights that EU states want to give industry in 2008-2012.
The Commission said it had cut by almost 7% the allowance amount that 10 EU countries - including Ireland - had proposed for the EU's pioneering emissions trading scheme (ETS). Only Britain's plan was accepted. The cuts also represented a 7% cut from 2005 emissions, the EU executive said in a statement.
'Today's decisions send a strong signal that Europe is fully committed to achieving the Kyoto target and making the EU ETS a success,' Environment Commissioner Stavros Dimas said.
The 10 countries involved in today's decisions accounted for 42% of the allowances allocated in the first phase of the emissions trading scheme between 2005 and 2007. Ireland's cap has been cut from 22.6 million tonnes to 21.15 million tonnes, a fall of 6.4%.
The EU's scheme is its key tool to meet targets for reducing greenhouse gas emissions under the Kyoto Protocol and puts a limit on the amount of carbon dioxide that big emitters such as power plants and oil refineries can emit. Companies buy more rights to emit if they overshoot their target or sell them if they come in below the cap. Companies face fines if they do not have enough rights to cover their actual emissions. But 2005 data showed EU governments gave industry more permits than needed, leading to a CO2 price crash.
