The European Commission's decision to reduce carbon emission allowances by 26.7% in Poland's National Allocation Plan for 2008-2012 ("NAP") has been ruled invalid by the ECJ Court of First Instance ("CFI").
The CFI upheld Poland's appeal, ruling that the Commission had exceeded its powers by questioning the data presented by Poland and using its own calculations to set a lower limit.
The reduction has been particularly unfavourable for Polish power plants and coal-fired combined heat and power plants, causing them to buy additional allowances to make up the deficit and to increase electricity prices to pay for them.
The full implications of the CFI's judgment are difficult to assess at this stage, but could lead to a review of the NAP and a claim for damages. In addition, the Commission has two months to appeal against the judgement to the ECJ.
You can find a more detailed description of the CFI's judgement here.
This article was written for Law-Now, CMS Cameron McKenna's free online information service. To register for Law-Now, please go to www.law-now.com/law-now/mondaq
Law-Now information is for general purposes and guidance only. The information and opinions expressed in all Law-Now articles are not necessarily comprehensive and do not purport to give professional or legal advice. All Law-Now information relates to circumstances prevailing at the date of its original publication and may not have been updated to reflect subsequent developments.
The original publication date for this article was 01/10/2009.