April 11 (SeeNews) - The European Commission has approved Bulgaria’s proposed allocation of free greenhouse gas (GHG) emission allowances for 2016, the energy ministry said on Tuesday.
The 6.5 million allowances will be distributed among 23 operators, which in return will have to invest 6.8 euro ($7.2) per allowance received in improving their environmental performance in production of electricity, the ministry said in a statement.
As the number of free allowances gradually decreases each year, free allowances for 2016 will cover around 40% of the operators’ needs. By comparison, that ratio was 70% in 2013.
The GHG emission allowances are part of the EU Emissions Trading System, which works on the “cap and trade” principle. Within the cap, companies receive or buy emission allowances which they can trade among themselves as needed. Each year companies must surrender enough allowances to cover all their emissions, otherwise fines are imposed.
($ = 0.9421 euro)