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The European Commission accepts Lithuania's application for free emission allowances

2012-05-17

The European Commission released a statement that it accepted, in principle, the applications of three states – Lithuania, Estonia and Cyprus – to allocate a particular number of free emission allowances (EA) to the power production sector for the 2013–2020 transitional period. The remaining countries (Poland, Bulgaria, Hungary, Romania, the Czech Republic and Slovakia) are still waiting for the assessment and conclusions of EC.

The fact that, for the time being, EC made a decision which is favourable only to Lithuania, Estonia and Cyprus allows to conclude that these countries had provided impeccable data and grounded explanations. However, in the said statement EC underlined that the decision was not finite as coordination of particular issues as regards aspects of state aid was still pending.

The exception for Lithuania, Estonia and Cyprus was made based on the provision of the Directive establishing a scheme for EA trading that some EU countries which are not connected to EU energy networks may allocate free EA of the transitional period for power production facilities until 2020. The general requirement of this Directive for all EU Member States is to no longer allocate free EA for the facilities of the power production sector from 2013 and the auction must be the principal method of acquiring such allowances.

The aim of the Lithuanian application for free EA prepared by the ministries of the environment and energy was to obtain part of the free EA for the modernisation of power production over the period of 2013–2020. According to the EC statement, free EA will be allocated on special terms.

First of all, this exception may be applied only until 2020 while the number of free EA allocations must be reduced annually to reach zero in 2020. Another condition is that the amount corresponding to the value of free EA must be invested in modifying and upgrading the national energy infrastructure, diversifying energy types and resources and launching clean technologies.

Information of the Ministry of the Environment, Tel. 266 3660

17/05/2012

 

 

 

 

Minister of Environment of Lithuania Kęstutis Navickas
Minister of Environment of Lithuania Kęstutis Navickas