Here is why they must go with additional nuclear power plantsÈR...

Here is why they must go with additional
nuclear power plants

ÈR slams EU's carbon credit trading changes
By ÈTK / Published 29 February 2008
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Brussels, Feb 28 (CTK) - Czech Industry and Trade Minister Martin Riman criticised in Brussels Thursday the European Commission's proposal for changes in trading in emission allowances.

If the proposal was put into practice, it could result in a leap increase in electricity prices in the order of dozens of percent, Riman said at a meeting of European energy, transport and communications ministers.

A new system of emissions trading should take effect in 2013 according to the proposal which Riman says could be approved by the end of this year in line with an optimistic scenario. Most allowances would then no longer be distributed among companies for free.

Under the system currently in force, emission allowances are given to countries which then distribute them at a zero price among industrial companies. One allowance represents one tonne of carbon dioxide that a polluter can emit into the air. Businesses can sell their excess allowances at an auction or buy extra carbon credits there.

At present, some 90 percent of allowances are distributed for free, but in future most of the carbon credits will head for auctions where companies will have to pay for them.

However, there will be different regimes for individual sectors of the economy. The energy industry, for example, should buy hundred percent of allowances right from 2013, while other branches of industry like steelworks and aluminium and cement producers should be approaching the level gradually and buy hundred percent as late as 2020.

"For us, this is a relatively difficult issue... In our country, two-thirds of electricity are generated in coal-fired power stations where we simply cannot avoid CO2 emissions," said Riman.

He added, however, that it was the stance of his ministry, while the Czech government was still discussing a joint approach because the issue would also be dealt with by the Environment Ministry.

Apart from the Czech Republic, similar concerns over higher electricity prices have been expressed by Lithuania and Poland. Lithuania said the leap price increase could reach up to 300 percent.