The Court of First Instance has annulled in two separate cases the decisions by the European Commission to reject national greenhouse emission reduction plans (NAPs). Both Poland and Estonia challenged the respective decisions of the Commission that have rejected their national plans that allocate emissions under Directive 2003/87/EC establishing a scheme for greenhouse gas emission allowance trading within the Community.

In the case of Estonia the court says that by specifying a specific quantity of allowances, any exceeding of which is regarded as incompatible with the criteria laid down by the Directive 2003/87/EC, and by rejecting the Estonian national plan, the Commission has exceeded the limits of its power of review.

Ruling on Poland’s application, the court also finds that the Commission did not have the power to replace the data contained in the NAP with its own data, obtained on the basis of a single method of assessment applied to all the Member States.

The European Commission says that it is studying the judgment carefully with a view to a possible appeal.

These two decisions will probably have a negative impact on the proper functioning of the Community’s greenhouse gas emissions trading system. There are similar applications for annulment pending from Slovakia, Hungary, the Czech Republic, Latvia, Lithuania, Bulgaria and Romania.