Before the start of the first and second trading periods, Member States had to decide how many allowances to allocate in total and to each EU ETS installation on their territory. This was done through national allocation plans (NAPs).
The European Commission had to assess NAPs for compliance with criteria laid down in an annex to the Emissions Trading Directive, as well as with EU rules on state aid and competition.
In many cases the Commission required changes to NAPs, in particular reductions in national caps. Once a NAP was approved, neither the cap nor the allocation per installation could be changed.
Member States had to prepare and publish their phase one NAPs by 31 March 2004 (or by 1 May 2004 in the case of the 10 Member States which joined the European Union in 2004). The Commission published a guidance document to assist them in preparing the NAPs.
All phase one NAPs can be found under the Documentation tab at the top of this page.
The timetable of the Commission’s Decisions on Member States’ phase one NAPs was the following:
Some phase one NAPs were amended prior to the Commission taking its Decision. The Commission also adopted decisions requiring some Member States to change their NAPs. Its most common objections were:
Chief among the lessons learnt from the phase one NAPs was that the process was very time-consuming. The timely notification of NAPs to the Commission and timely final allocation decisions were needed to give companies certainty well before a trading period started.
Another important lesson was that the NAPs were too complex and not sufficiently transparent.
In its guidance document for phase two NAPs , the Commission therefore emphasised the need to make them simpler and more transparent. To simplify NAPs, the Commission encouraged Member States to review critically the administrative rules created in their first allocation plan. To ensure greater transparency, the Commission drew up a number of standardised tables to summarise key information contained in the NAPs.
Phase two NAPs had to be submitted to the Commission by 30 June 2006. All phase two NAPs can be found under the Documentation tab at the top of this page.
The timetable of the Commission’s Decisions on Member States’ phase two NAPs was the following:
For EEA-EFTA States, the Decisions by the EFTA Surveillance Authority were adopted on the following dates: