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National Allocation Plan

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National Allocation Plans (NAP) are a part of the legal framework of the European Union Emission Trading Scheme that determine the distribution of CO2 allowances allotted to countries committed to the Kyoto Protocol or the EU ETS.  A NAP sets the total quantity of emission allowances that a member state will allocate to companies within its borders.  This requirement forces each member state to determine well in advance of the beginning of each trading period what total quantity of allowances to allocate in total and
how many allowances each individual installation should receive.  Member states submit proposed NAPs to the European Commission, which reviews plans and may ask for revisions.  See this 2007 press release regarding Italy's proposed NAP for an example of how this process may operate in practice.

The European Commission has proposed replacing national allocation plans with centralized allocation beginning in the 3rd Trading Period of the EU ETS.

See further: "Questions and Answers on Emissions Trading and National Allocation Plans for 2008 to 2012" [PDF]: http://ec.europa.eu/environment/climat/pdf/m06_452_en.pdf

 

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