The European Commission has told Poland and the Czech Republic to significantly lower the CO2 limits imposed on their industry for 2008-2012, sparking a row with Warsaw and Prague.

The second phase of the European Emissions Trading Scheme (2008-2012) is aimed to coincide with the deadline to meet the targets set out in the Kyoto Protocol on global warming.

National Allocation Plans (NAPs) determine a limit on CO2 that each member state projects to emit, specifying amounts for each individual plant covered under the scheme. Industries covered by the scheme include power generation including oil refining, iron and steel, glass, cement, pottery and bricks.

The Commission is responsible for assessing the NAPs submitted by member states and may accept or reject them according to a set of predefined criteria.