National Allocation Plans

Article 9 of the Emissions Trading Directive requires each Member State to develop, based on the criteria set out in the Directive, a National Allocation Plan (NAP) to set the total allocation of emissions to the sectors covered by the Emissions Trading Scheme (ETS) and their distribution between individual installations. All the NAPs put together establish the cap on emissions at EU level for the covered sectors. The first NAPs for the period 2005-2007 have been approved by the Commission, most of them subject to modification to the initial proposals by the Member States concerned. The state of the progress and the relevant documents can be viewed on the European Commission's NAP pages.

Member States must submit their draft NAPs for the period 2008-12 to the Commission by the end of June 2006.The draft plans are required to undergo a public consultation prior to any decision..

Green Views on NAPS

The success and environmental effectiveness of the Emissions Trading Directive depends critically on the integrity of the national allocation plans. These plans must set caps that produce real emission cuts. They must be in line with the reduction targets set out in the burden sharing agreement to be consistent with the Kyoto Protocol commitments, taking into account the projected development of emissions in sectors which are not covered by emissions trading. Countries that are below their Kyoto targets should anticipate the need to achieve further reductions in the future and must not be allowed to give their industry hidden subsidy in the form of emission rights. The process of setting these targets must be, as stated in the Directive, objective, transparent and open to public comment and feedback.

In line with the "polluter pays" principle and to favour the best performers in the market, the Greens have called for at least partial auctioning of the initial allocation by Member States. Member States must also set limits to the use of credits from emission reductions outside the EU (CDM and JI credits) in line with the commitment to achieve most of the emission reductions required by the Kyoto Protocol domestically in Europe.

Greens together with environmental organisations all over the EU have monitored the NAP process critically and have made comments to the national governments and to the European Commission.

The Greens intend to scrutinise the proposals for the next period 2008-2012 and participate actively in the debate to ensure the NAPs are consistent with our international obligations and set the tone for future reductions needed to play our part in avoiding dangerous climate change.

EU Commission's guidance paper on NAPs

Climate Action Network's Position Paper on NAPs 2008-2012