Free ETS Allowances for Coal Power Plants

Based on a political agreement made by the EU council in 2008, 10 new EU member states were allowed to apply for exceptions to the tightened regulations of the EU emissions trading scheme (ETS) after 2013.

These states are allowed to freely distribute a significant number of ETS allowances to electricity generation companies that would otherwise be subject to a public auction. The aim of this exception was to provide an impetus for further modernization of the electricity generation sector in the countries concerned.

However, the plans presented by the Polish, Romanian, and Czech governments instead provided a massive boost to coal power plant investments, both new and existing. The approach of these states went clearly against the objective of the exception, aiming at reimbursement of “business as usual” investments with minimum potential to modernize their energy sectors and thereby failing to promote a transition towards less carbon-intensive electricity production.

Together with leading European NGOs, we promoted the strict implementation of the requirements established by the Directive at the EU level.


New report on Czech ETS application. Commission alerted

Prague, Czech Republic – Czech environmental NGOs have submitted a critical report to the European Commission that contains a range of problematic issues related to the recent Czech plan to allocate 108 million free allowances to 85 local power producers after 2012.

, Arthur Neslen

Prague feels the heat over €1.9bn carbon credit application

A Czech bid for almost €2 billion of free allowances under the EU’s Emissions Trading System (ETS) – equal to almost half Prague’s 2012 budget deficit – has drawn heavy fire from Brussels and European environmentalists, who say it will do little to combat CO2 emissions.

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Kristína Šabová


Related Documents

PDF Report on Czech 10c Application (453.29 KB)