Slovakia rushes to get emissions law approved

The government is pressed for time to get a legislative revision on the allocation of emission allowances pushed through parliament. The draft amendment was approved by the cabinet on Wednesday this week.

The draft includes several new sectors in the emission allowance trading scheme, such as the chemical industry, aluminium producers and air transport companies.

The new law, which will be pushed through fast-track legislative proceedings, also prevents allowances from being used as collateral or as a subscription to the share capital of a company.

The law is being speeded up because EU member states have to respect EU requirement to publish listings of entities involved in the Emission Trading Scheme (ETS) by the end of September this year.

Another reason for the rush is so that Slovak companies do not miss out on the next period from 2013, because if they are not registered in time it could means hundreds of millions of euro lost in emission allowances. This could put many companies into bankruptcy and would lead to a huge outage in the state budget.

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