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Additional tools
The National Allocation Plans (NAPs) set out the total quantity of greenhouse gas emission allowances that Member States grant to their companies in the first (2005-2007) and the second (2008-2012) trading periods. Before the start of the first and the second trading periods, each Member State had to decide how many allowances to allocate in total for a trading period and how many each installation covered by the Emissions Trading System would receive. For the third trading period, which begins in 2013, there will no longer be any national allocation plans. Instead, the allocation will be determined directly at EU level.
Each Member State had to prepare and publish a first NAP for the 2005-2007 trading period by 31 March 2004 (1 May 2004 for the 10 Member States that joined the European Union in 2004). The NAPs for the second 2008-2012 trading period had to be prepared and published by 30 June 2006.
Ensuring the allowances are in line with the Kyoto Protocol
The assessment of the allocation plans is done by the European Commission based on criteria set in the annex of the Directive on Emission Trading.
For example, the proposed total quantity of allowances must be in line with a Member State’s target within the framework of the Kyoto Protocol. This meant that a Member State should make sure that the allocations that they grant their installations will allow it to meet its Kyoto target.
Possibility of rejection of a national allocation plan
A rejection of a national allocation plan means that the Member State may not proceed to implement the plan as it stands, i.e. may not allocate the number of allowances proposed. The Commission must give reasons in any rejection decision. These reasons will give guidance to the Member State on how to make the plan compatible with the allocation criteria.
If the Member States whose plans were partially rejected implement the proposed changes they will not have to submit their plans to the Commission a second time, but automatically qualify for emissions trading.