Wednesday

29th Mar 2023

EU court slaps down Brussels attempts to lower eastern CO2 emissions

  • The price of carbon dropped sharply after the news (Photo: European Commission)

Poland and Estonia have won a court challenge to European Commission attempts to rein in their carbon emissions, a move that could threaten the European Union's flagship mechanism for combatting climate change.

The European Court of First Instance on Wednesday backed complaints from the two eastern EU member states, saying that the commission had "exceeded the limits of its power" when it rejected their national carbon emission reduction plans.

Read and decide

Join EUobserver today

Become an expert on Europe

Get instant access to all articles — and 20 years of archives. 14-day free trial.

... or subscribe as a group

"We are extremely disappointed and we are studying the ruling with a view to a possible appeal," said commission environment spokeswoman Barbara Helfferich.

"The commission is studying the judgment carefully with a view to a possible appeal," she continued.

"The commission will take all possible action in order to protect the integrity of the European-wide market for allowances and minimise the legal uncertainty created by these rulings."

Under the EU's emissions trading scheme, the bloc's main pillar of its climate policy, major carbon emitters must submit annually a number of emission allowances to their government that are equivalent to their CO2 emissions for that year. If they do not release as much carbon as their allocation, they can sell on their surplus allowances. If they exceed their carbon allowances, they are obliged to purchase extra.

The main fault with the ETS however has been that member states, responsible for emissions allowance allocations, have over-allocated allowances.

As a result, from 2012, the emissions allowances will be centralised in the hands of the commission, ending the system of national allocation plans (NAPs).

Until then, the commission has the power to review these plans. But the court found that in limiting the NAPs of Estonia and Poland, it had surpassed the boundary of its authority.

"The court finds ... that by specifying a specific quantity of allowances ... and by rejecting the national plan of the Republic of Estonia," one ruling read, "the Commission has exceeded the limits of its power of review."

A similar judgement was offered after Poland's complaint. Both submissions were backed by other eastern European member states: Bulgaria, the Czech Republic, Hungary, Latvia, Lithuania and Romania.

The court said that the commission was "encroaching on the exclusive competence [of] the member states."

The EU executive has two months to lodge an appeal.

Meanwhile, the Czech Republic, which had recently given notice that it intended to withdraw its own, similar complaint, on Wednesday signalled that it will continue with the court case.

Following the ruling, the price of carbon skidded, as markets worried that if the judgement is upheld by the European Court of Justice, member states will increase the allocations in their emission plans, a move that could see the price of carbon crash.

The decision comes at an awkward time for Brussels, with the EU holding up its track-record on climate change as the most ambitious amongst industrialised powers in the lead-up to the UN climate conference in Copenhagen in December.

Sanjeev Kumar, the emissions trading scheme co-ordinator for conservation group WWF told EUobserver: "I've never seen a ruling as direct and aggressive."

"But at the same time in the end it's a lot of fuss about nothing. The ruling only applies to phase two of the ETS [until 2012], after which allocation is centralised."

EU approves 2035 phaseout of polluting cars and vans

The agreement will ban the sale of carbon-emitting cars after 2035. The EU Commission will present a proposal for e-fuels after pressure from German negotiators via a delegated act, which can still be rejected by the EU Parliament.

'Final warning' to act on climate change, warns IPCC

The United Nations's report — synthesising years of climate, biodiversity, and nature research — paints a picture of the effects of global warming on the natural world, concluding there is "no time for inaction and delays."

EU launches critical raw materials act

The EU presented its strategy to ensure access to critical raw materials needed for clean technologies. No country should supply more than 65 percent of any key material. Currently, China dominates almost all rare earth metal markets.

'The race is on', EU Commission warns on green tech

The EU Commission is expected to detail its plans on Thursday as part of the Net-Zero Industry Act on industrial incentives, and the Critical Raw Materials Act, which seeks to reduce EU over-reliance on China.

Opinion

Dear EU, the science is clear: burning wood for energy is bad

The EU and the bioenergy industry claim trees cut for energy will regrow, eventually removing extra CO2 from the atmosphere. But regrowth is not certain, and takes time, decades or longer. In the meantime, burning wood makes climate change worse.

Opinion

EU's new critical raw materials act could be a recipe for conflict

Solar panels, wind-turbines, electric vehicle batteries and other green technologies require minerals including aluminium, cobalt and lithium — which are mined in some of the most conflict-riven nations on earth, such as the Democratic Republic of Congo, Guinea, and Kazakhstan.

Latest News

  1. EU approves 2035 phaseout of polluting cars and vans
  2. New measures to shield the EU against money laundering
  3. What does China really want? Perhaps we could try asking
  4. Dear EU, the science is clear: burning wood for energy is bad
  5. Biden's 'democracy summit' poses questions for EU identity
  6. Finnish elections and Hungary's Nato vote in focus This WEEK
  7. EU's new critical raw materials act could be a recipe for conflict
  8. Okay, alright, AI might be useful after all

Stakeholders' Highlights

  1. EFBWWEFBWW and FIEC do not agree to any exemptions to mandatory prior notifications in construction
  2. Nordic Council of MinistersNordic and Baltic ways to prevent gender-based violence
  3. Nordic Council of MinistersCSW67: Economic gender equality now! Nordic ways to close the pension gap
  4. Nordic Council of MinistersCSW67: Pushing back the push-back - Nordic solutions to online gender-based violence
  5. Nordic Council of MinistersCSW67: The Nordics are ready to push for gender equality
  6. Promote UkraineInvitation to the National Demonstration in solidarity with Ukraine on 25.02.2023

Stakeholders' Highlights

  1. Azerbaijan Embassy9th Southern Gas Corridor Advisory Council Ministerial Meeting and 1st Green Energy Advisory Council Ministerial Meeting
  2. EFBWWEU Social Dialogue review – publication of the European Commission package and joint statement of ETUFs
  3. Oxfam InternationalPan Africa Program Progress Report 2022 - Post Covid and Beyond
  4. WWFWWF Living Planet Report
  5. Europan Patent OfficeHydrogen patents for a clean energy future: A global trend analysis of innovation along hydrogen value chains

Join EUobserver

Support quality EU news

Join us