Based on a proposal submitted by Federal Environment Minister Jürgen Trittin the German cabinet today agreed the first national allocation plan (NAP) for Germany. The German government thus fully meets the requirements of the EU Directive for a Europe-wide emissions trading system in accordance with the given timetable. Federal Environment Minister Juergen Trittin: "The allocation plan is an important step for climate protection in Germany and Europe. The German government has now established a basis for achieving the climate protection goals of the Kyoto protocol."
The allocation plan is the core element of the future emissions trading system. It regulates the overall volume of future greenhouse gas emissions from the energy sector and industry as well as the distribution of emissions allowances to individual companies. It is the basis for a law which contains binding regulations on the allocations to be made in 2004. As outlined in the Directive the plan will be handed over to the EU Commission and to the other member states today. This is a precondition for the planned start of the trading system on 1 January, 2005.
Up to the year 2012 Germany must achieve emissions reductions of 17 million tonnes of CO2 to meet the Kyoto goal. The allocation plan outlines that all branches of industry and all sectors must make an appropriate contribution to this goal. Of these 17 million tonnes, 10 million tonnes of CO2 must be reduced by the energy sector and industry, the remaining share will be borne by private households, the transport sector and commerce.
At the same time the allocation plan provides incentives for the modernisation of power plants. Companies replacing old installations and investing in modern technology will benefit from an attractive allowance transfer provision. The platform agreed upon today will support innovation, modernisation and environmentally sound economic growth.
Note: For the German version of the allocation plan please click here .