Emissions Trading Scheme – Slovakia

The ECJ has dismissed an appeal raised by Slovak Firm US Steel Košice, the only integrated steel producer in Slovakia, challenging the European Commission over its decision to reduce the Slovak Government's carbon cap.

The Court upheld the earlier Order of the Court of First Instance, that the contested decision did not directly impact on the legal position of US Steel Košice.

The Court found that the Commission’s decision did not affect the discretion, held by Slovakia, to allocate specific allowances to individual installations provided that the total limit on the quantity of allowances to be allocated was respected.

It was held that it was for Member States, not the Commission, to decide on the allocation of allowances contained in a National Allocation Plan as approved by the Commission.

The Court also found that the Commission’s decision could not be challenged under EU State Aid Rules.

The Order of the ECJ in case C-6/08 can be found here.

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