The second problem with the draft of the new bill – in area of emissions trading – is that the new regulation makes a simple and rather obvious error restricting types of possible contracts (relating to the disposal of allowances).

We have cited above the exact wording of the article 14 para. 1 of the new statute.

It follows from the literal interpretation of the said provision, that only contracts of sale are permissible in relation to SO2 and NOx emission trading.

And what about, for instance, the contract of donation? Is it possible the exchange of SO2 and NOx allowances? The draft bill is silent about these questions, but if we stand on a literal wording of the text, only the contract of sale is explicitly mentioned in article 14 of the draft.

Furthermore, the draft of the bill doesn’t mention any issues of emission trading in other articles.

Leaving aside donations of allowances, there is much more serious legal problem relating to treating allowances as a security (collateral). The new draft bill isn’t also helpful in answering the question, whether SO2 and NOx allowances can be used as a collateral (lien, for instance).

And a small change would be sufficient to manage all this mess – to substitute in the draft bill the word “sale” with the word: “disposal”.




The new SO2 i NOx emissions market in Poland – some issues are controversial

Copyright © Michał Głowacki



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