Czechs look at past for CO2 credit allocation

...will not give any bonuses for investing into greener technology, Industry and Trade Minister Martin Riman said on Thursday.

The EU cut the annual allocation of carbon emission rights for the Czech Republic to 86.8 million tonnes per year in 2008-2012 from 101.9 million demanded by the Czechs, down from 97.6 million tonnes in 2005-2007.

Riman said he personally would consider sueing the EU over the allocation but added that the cabinet may have different priorities. He said he will discuss this with economic ministers on Monday.

The Czech government ministries have been deciding in recent weeks how to distribute the lower quota among individual companies.

An "early action" bonus in allocation of CO2 permits may be given to firms that have improved technology to cut emissions.

"All the options are based on one principle, and that is that the allocation should not be selective but across-the-board," Riman told a news conference.

"What had happened in the previous distribution of the allowances, that individual sectors had lobbied for more, should not occur again. We want to approach this in a unified manner."

He said that meant that the new allocation would be based on historical emissions in 2005 or 2006 or both, and multiplied by a given index.

Asked if any early action or other bonuses would be given, he said: "There will be some tiny reserve for new sources, but otherwise all these things will go," he said.

He acknowledged that companies that had invested in greener technology would thus not be favoured in the new plan.