The German Emission Allowance Trading Authority at the Federal Environment Agency (DEHSt) will now come to its decisions regarding award of emissions allocations to companies participating in emissions trading after 1 November 2004. This extension will allow applicants more time beyond the legislated deadline to hand in applications that were incomplete or erroneous. “Quality takes priority over speed and is in the interest of all stakeholders. The quality of decision making in the matter is more important for the individual company and the entire procedure in Germany than making allocations in early November”, said Prof. Dr. Andreas Troge, President of the Federal Environment Agency (UBA). The DEHSt has determined that over 500 of the 2,200 applications require more information from the applicants. This does not jeopardize the timely start of emissions trading in Germany on 1 January 2005.

DEHSt is allocating a maximum emissions budget of 495 million tons of carbon dioxide per year over the next three years. Their objective is to allocate emissions allowances fairly. However, the number of allowances granted to a facility can only be determined when all applications have passed final review. “If we were to make our decisions based on the applications now submitted, it would not be favourable for the companies concerned”, explained DEHSt Director Dr. Hans-Jürgen Nantke.

The DEHSt is also engaged in talks with over 500 companies about their submitted applications. “It is challenging to treat all applications absolutely equally”, added Nantke.

More than 60% of all applicants would like to apply combinations of different allocation regulations, of which some are not authorized. Many cases seek to apply the so-called hardship case clause. In some cases, the DEHSt gets in touch with applicants who submitted applications based on production forecasts. These forecasts and the best available techniques (BAT) they are based on require especially thorough review.