The national allocation plan – or NAP – foresees a reduction of Italian CO2 emissions by 37.09 million metric tons per annum compared to phase I, the 2005-07 period. The electricity generating sector will see its allocation of credits fall from the present 131 million tons per year to 100.5 million tons.

The scheme refers only to those polluters which are already involved in ETS. A reserve of 8 million tons per year is set aside for new plant built during the course of phase II.