The UK government has won a legal challenge in the Court of First Instance in a case against the European Commission (EC) over the UK’s national allocation of carbon emission allowances.
The UK challenged the EC’s refusal to consider the amendment to the UK’s National Allocation Plan (NAP) which followed an upward revision of estimates from the initial assessment of 736 million tonnes of carbon dioxide during phase I of the European Emissions Trading Scheme (EUETS). On further analysis, the UK submitted a revised estimate for its NAP which required some 756 million units, a move which the EC rejected out of hand. The UK then issued the initial quota of 736 million units while simultaneously launching a legal challenge.
The court subsequently ruled in favour of the UK, a move which now requires the EC to consider the amendment, although not necessarily accept the changes if they are found to be in conflict with the relevant directive.