The data indicates that the European Commission had set allocation limits at too high a level. Figures published today show that CO2 emissions were 44 million tonnes under the level permitted in 2005. Early reports last week that Germany's industry released far less carbon dioxide than allowed under the trading scheme resulted in carbon prices falling by about 20 per cent on 12 May.
The data might result in regulators speeding up the programme to slowly lower allocations and put more pressure on industry to pollute less.
By the compliance deadline of 30 April 2006 a total of 849 installations were identified as not having surrendered a sufficient number of emission allowances. Many of these have subsequently fulfilled their surrender obligation over the last two weeks, the Commission noted in a press release.
The preliminary statistics submitted by a number of countries also reveals how some of the EU's largest personal care companies are faring under the EU's Emissions Trading Scheme (ETS).
The data could provide ammunition for the bloc's personal industry's association (CIAA), which has been lobbying the European Commission to exempt small and medium sized businesses in the sector from the ETS.
ETS is part of the bloc's plan to reduce greenhouse gas emissions to meet international commitments under the Kyoto Protocol. The "cap-and-trade" scheme, which took effect from January 2005, allows companies to buy and sell CO2 emissions rights on specially constructed Internet sites.
Plants that emit more CO2 than their allocation need to buy allowances to cover the extra emissions. Companies that emit less than their allocation are able to sell the allowances to companies that need them.
The food processing industry is a major energy consumer and discharger of greenhouse gas through its reliance on cooking, refrigeration, freezing and air compressor systems. The increased costs have added to the costs companies must pay to stay in business.
The ETS currently covers around 11,500 installations that account for about half of the EU's CO2 emissions. Arriving at an EU-wide definition of which installations fall under the scheme is part of the challenge regulators face in complying with the agreement.
The UK's minister for environment and climate change, Ian Pearson, said that nearly all UK companies have complied with the ETS' requirements, but warned that other states needed to crack down on polluters.
In the UK, about 99.6 per cent of operators submitted their verified emissions reports and surrendered the correct number of allowance. Just three of around 690 installations are facing possible enforcement action for not complying with the deadlines, Pearson said.
Under the scheme companies can be fined about €40 per excess tonne of CO2 emitted, a price above allocations being traded on the market.
"While the system appears to be functioning effectively, the results across the EU do raise questions about the stringency of the caps in some member states," he stated today in a press release. " We will be looking very carefully at these results over the next few weeks, in particular in the context of the plans for the next phase which are currently under development. I will be encouraging the Commission to use this information to improve the enforcement of tough caps for phase two so that the scheme provides the appropriate incentives for investment in clean technology."
Looking to the UK companies involved in the personal care industry included Pfizer and GlazoSmithKline as well as a host of ingredients and fine chemical suppliers who all came with the specified regulations for pollution. However, four countries are yet to publish there results, including France.
