Poland says awaits EU to allocate 2008 CO2 permits

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WARSAW, Feb 12 (Reuters) - Poland will allocate 2008 carbon dioxide (CO2) emission permits to its industry only when the European Union’s executive Commission passes them to Warsaw, an official said on Thursday.

None of Poland’s 208.5 million tonnes of annual European Union allowances (EUAs) for the 2008-12 trading period have so far been given to Polish industry, despite a nearing end-February deadline for 2009 EUAs.

“When we issue those allowances depends on the European Commission, who have not passed them to us,” Jacek Jaskiewicz, the deputy director of Poland’s climate change department, told Reuters.

“We think they should give it to is immediately as they have no right to hold it,” he added.

Prices for benchmark EU Allowances CFI2Z9 now stand below 9 euros a tonne and the market fears the prices may dip even further when companies receive new permits for 2009 later this month, and when Poland issues its 2008 quota as well.

“The chances exist that we will issue both 2008 and 2009 together but it all depends on the Commission — on what and when they will give us,” Jaskiewicz also said. A source close to the matter said Poland may not issue its 2008 EUAs in February. Earlier this week Poland’s Environment Ministry official said Warsaw hoped to issue the allowances this month.

Warsaw challenged Brussels’ decision giving it 208.5 million tones for this accounting period as too low and threatening its economic growth.