Emissions allowance trading

On 1^st January 2005 Slovenia, and therefore also our company, decided to participate in a scheme for greenhouse gas emission allowance trading within the Community (European Union). With this participation we have contracted the obligation for carbon dioxide (CO2) emissions production in proportion to the allocated emissions allowances. This means that we must assure the exact quantity of emissions allowances, which will be equal to our CO₂ emissions.


Cooperation on the new market

If our produced CO₂ emissions exceed the allocated quantity of emissions allowances, we will be obliged to cover this shortage on the carbon market. In the case of surplus, we will have the opportunity to sell this quantity to other participants that will be active on the demand side of the carbon market.

Slovenia and Kyoto Protocol obligation

Emissions allowances delivery means an obligation to the country, which must further report to the European Commission how it is fulfilling the Kyoto Protocol target. The nation's target is defined precisely within the Kyoto Protocol, separately for each country. In the case of the company not fulfilling its own obligation, the country will not be able to successfully implement the Kyoto Protocol measures.

Success of the new instrument

We can maintain that this new economic instrument of emissions trading is more successful than the old traditional economic instruments. The biggest advantage of the emissions trading is its flexibility, which is reflected in possibilities of transferring efficient technologies and emissions allowances between different installation operators.