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Crackdown

Crackdown the European Commission (EC) has decided to initiate legal action against six member countries which have not submitted their National Allocation Plans on carbon dioxide emissions. The deadline for the submission of these plans was March 31, 2004. These country-specific plans, allocating emission limits to domestic companies, are a step towards the implementation of the Emissions Trading Scheme (ETS) across the EU in January 2005.

"I have decided to begin preparations for infringement proceedings against those EU-15 states which have not yet submitted their plans,' said EC environment commissioner Margot Wallstrom on May 18. Some countries like Sweden and the UK submitted their plans after the deadline, while Belgium, France, Greece, Italy, Portugal and Spain have yet to present theirs. Out of these, some nations like Belgium, Portugal and Italy have prepared a draft plan but haven't finalised it.

Wallstrom voiced reservations about even those plans that have been submitted. "My first impression is that many of the notified plans go for a rather high quantity of allowances. This is disappointing and makes the commission's scrutiny of plans all the more important,' she said, adding: "Too many allowances will create little incentive to change behaviour.'

However, she averred that despite the problems, ETS would be launched on time. The EU executive is likely to announce the results of its review of the submitted national plans in July 2004. It has already warned that it will reject them, partly or completely, if they are not stringent enough. Under ETS, nations will be required to stay within their emissions limit and defaulting companies will either buy allowances from more efficient ones or pay heavy fines.

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