The European Commission has cut the amount of carbon dioxide emissions rights for Finnish companies for the period 2008 to 2012. Industry and commerce consider the decision to be regrettable because companies will be obtaining rights well below their needs.

"The meagreness of the emissions rights will increase companies' costs and have a detrimental effect on competitiveness. In particular this will have an effect on energy-intensive industrial sectors that operate in worldwide competition," says Jouni Tolonen, an advisor in energy and climate at the Confederation of Finnish Industries (EK).

According to the Commission's decision in the summer, an average of 37.9 million tonnes of emissions rights can be shared annually among Finnish companies that are party to emissions trading, whereas the Finnish proposal was 39.6 million.

"The cutting of two million carbon dioxide tonnes means additional costs of 40 million euros for industrial and commercial life a year," Tolonen reckons.

Unfair bases

The decision is made unfair for Finland by the fact that the Commission assessed plans for sharing the emissions rights using as a comparison their figures for 2005, when Finland's emissions were exceptionally low. This was because of the good hydro-power situation, a long stoppage in the forest industry and warmer than normal weather.

"EK looks on the cuts as regrettable because the Finnish plan aimed in particular at meeting the commitments of the Kyoto Accord," Tolonen emphasizes.

The decision has come in for criticism from other countries as well. "The Commission can be challenged about the cuts decision at the European Court of Justice. Six EU countries have given notice that they intend to do so."

In Finland there are 150 companies and about 500 industrial and energy-production plants coming within the sphere of the EU's emissions trading.

Industry and commerce's aim is global emissions trading that keeps competition for companies on an even footing. (Photo: Helsinki Energy)