Italy approves EU requested CO2 cut plan 2008-2012

MILAN, March 4 (Reuters) - Italy has given its final approval to a plan to cut annual emissions of carbon dioxide (CO2) in 2008-2012 by the full amount the European Commission has requested, the Environment Ministry said on Tuesday.

Brussels said last May Italy must cut the greenhouse gas emissions by companies covered by the bloc's emissions trading scheme (ETS) in 2008-2012 to 195.8 million tonnes a year, or by about six percent less than Rome had proposed initially.

Italy had agreed to cut C02 emissions from sectors covered by the ETS by 13.65 million tonnes "in full respect to the Commission's decision", the ministry said, after months of debates with smokestack industries.

But the total cap has been raised to 201.63 million tonnes after new industrial processes, including cracking in oil refining, were added to the ETS as agreed with Brussels, the ministry said in a statement.

Brussels has been notified of the finalised national allocation plan (NAP), it said. The NAP -- which was revised during consultations with industries in December-February -- is published on the ministry's Web site www.minambiente.it.

Italy is one of the countries lagging furthest behind on targets under the Kyoto Protocol.

Under the final version of Italy's NAP, the CO2 emission quota for new industrial plants -- a subject of intense debate as it is considered to be important for overall economic development -- was raised to an average of 16.93 million tonnes a year from 15.65 million tonnes earmarked in December.

The ETS -- part of Europe's efforts to fight global climate change -- puts a cap on the CO2 emissions of energy-intensive industry, including those of installations yet to be built.

As agreed in December, Italy's fossil fuel-fired power generation would bear the brunt of CO2 reductions as the sector is requested to cut annual emissions by 9.5 million tonnes to 85.29 million tonnes.