EU approves Malta's plan to contain greenhouse gas emissions

The European Commission has approved Malta's National Allocation Plan 2005-2007 regarding the emissions of greenhouse gases from large installations.

The National Allocation Plan (NAP) is part of the obligations arising from implementation of Directive 2003/87/EC establishing a scheme for emission allowance trading and was prepared by the Malta Environment and Planning Authority together with consultants from the UK and Belgium, on behalf of the government of Malta.

Following the Commission's approval, the NAP may now be adopted as a measure to limit Malta's emissions for the period 2005-2007.

The Commission has approved that Malta be allowed 8.8 million tonnes of carbon dioxide for installations falling within the scope of Directive 2003/87/EC in Malta, covering this initial phase of emissions trading. About 75 per cent of this allocation was designated to the power generation sector, divided between the two power stations. The allocations took into account projected growth in electricity demand and increased efficiency in electricity generation.

The NAP made a further allocation for new large sources of emissions that may start operations during this trading period. The government is obliged to start formulating a further NAP for the period 2008-12.

The EU undertook to cut its emissions of greenhouse gases by eight per cent over the levels of 1990 by 2008-2012. This was done in line with commitments undertaken under the Kyoto Protocol. A burden sharing agreement was undertaken by the then 15 member states to determine the respective emission limitation or reduction levels for each state.

To facilitate the process of reaching the reduction target, an EU-wide emissions trading scheme has been set up. This provides a mechanism whereby large point sources of emissions (large installations such as, for example, large coal or oil-fired power generating plants and oil refineries) are allocated allowances for a certain amount of emissions.

An installation that actually emits less than what it was allocated may sell its extra allowances to an installation that needs to acquire extra allowances to cover emissions in excess to those allocated. In Malta the only two installations falling within the scope of this trading scheme are the power stations of Marsa and Delimara.