The Czech Republic may block a European Commission plan to auction carbon dioxide

The Czech government has announced that it may block a proposed plan by the European Commission to auction Carbon Dioxide permits after 2012. The proposals, which have been broadly welcomed across Europe, extend the EUs Emissions Trading Scheme, which seeks to cut CO2 emissions by 20% on 1990 levels by 2020. The current trading system allows companies free emissions permits, but in future they will have to buy these allowances, significantly increasing costs. Several new EU states have voiced opposition to the plans, saying that the proposals would hurt their more coal-dependant economies.