NAP

National Allocation Plan

The National Allocation Plan (NAP) defines the total amount of carbon dioxide (CO2) emissions that Austrian companies which participate in emissions trading are allowed to emit. The NAP defines not only the total amount of emissions but also the allocation methodology. The underlying idea of emissions trading is that member states reduce CO2 emissions from energy-intensive sectors by allocating a limited number of allowances to installations so that a functioning market develops. This market mechanism makes sure that installations reduce their emissions at the lowest possible cost.

After having finalised the National Allocation Plan for the respective trading period, Austria submits the NAP to the European Commission for approval. The Allocation Plan for the pilot phase of the EU Emissions Trading Scheme from 2005-2007 was prepared and approved by the Commission in 2004. The total amount of emissions allowances to be allocated to about 200 Austrian companies was about 33 million allowances per year.

The Allocation Plan for 2008-2012 was submitted to the European Commission for approval in February 2007. On 2 April 2007 the Commission decided that the total amount of allowances had to be reduced from 32.8 to 30.7 million allowances per year. In addition, the Commission ruled that the refinery, integrated steel and district heating sectors may not be treated unduly favourable. In addition, the maximum percentage of Kyoto units from JI/CDM that operators may use was reduced from 20 % to 10 % of the total allocation to each individual installation.