Joint Release with the Federal Ministry of Economics and Labour
In the run-up to the meeting of the Council of the Environment Ministers on 9 and 10 December in Brussels, the Federal Government agreed on important amendments to the directive on emissionstrading in intensive negotiations between both the Federal Environment Minister Juergen Trittin and the Federal Minister of Economics and Labour Wolfgang Clement and the EU Commission. The essentialpoints adopted in the Coalition Agreement for such a directive have thus been implemented.
In the COREPER meeting of 4 December, the EU Commission amended its proposal for a directive in the following points:
- In the first commitment period (2005-2007), the Member States will be granted the opportunity to exempt specific plants or whole industries from the compulsory participation in emissionstrading. This takes account of the central request of the Federal Government for an opting-out option for those industries that have signed the climate change agreement with the FederalGovernment.
- The Member States are given the opportunity to grant emissions rights for both commitment periods (2005-07 and 2008-12) free of charge. Germany will make use of this instrument and grantemissions rights to domestic companies on the basis of the national climate protection programme and its important element, the Declaration by German Industry and Trade on Global Warming Prevention. Emissions trading will not add further burden to companies on top of the pledges made in this declaration of voluntary commitment.
- Agreement was reached with the European Commission that successful German climate change actions will be accepted when the national allocation plans are set up. Germany is thus given theopportunity to select 1990 as its base year for the allocation of emissions rights (early action).
- In addition, companies will be given the opportunity to pool their emissions rights, i.e. to manage them jointly and make use of the existing declarations of voluntary commitment.
At the forthcoming Council meeting, Federal Environment Minister Trittin will urge the Member States to endorse the compromise that was agreed upon with the Commission. Provided that theamendments that are of essential importance for Germany, are adopted by the Council, Germany will support the directive.
In the subsequent transposition of the directive into national law and the setting up of allocation plans for the plants covered by the directive, the Federal Government will see to it that thetargets for climate protection are met and that the emissions rights will be distributed in the energy sector in such a way that Germany will remain an attractive location for efficient energyproduction including modern coal-fired power plants and that the jobs in the energy intensive industries will not be lost.