Billerud Karlsborg AB v. Naturvardsverket (EU Court of Justice, 2013)

European Union

Jurisdiction: European Court of Justice

Principle law(s): EU Emission Trading Scheme (EU ETS) (Directive 2003/87/EC establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61/EC)

Side A: Billerud Karlsborg AB (Corporation)

Side B: Swedish Environmental Protection Agency (Government)

Core objectives: Challenge penalties for failure to surrender emissions allowances

Summary

The Swedish environmental protection agency, imposed penalties on the Billerud companies for failing to surrender credits under the EU Emissions Trading Scheme in 2006. The Billerud companies challenged the penalties arguing that since the failure was due to an internal error and the companies had a sufficient number of allowances at the time, they should be excused. The European Court of Justice (CJEU) found that under Directive 2003/87/EZ, penalties for failure to surrender credits still apply even if the entity held a sufficient number of allowances at that time. In addition, the CJEU found that the penalty was a lump sum and may not be varied by a national court on the basis of the principle of proportionality.

Case documents

Judgment

Related laws and policies

This law implements European Union legislation

EU Emission Trading Scheme (EU ETS) (Directive 2003/87/EC establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61/EC)

Passed in 2003 Legislative

This Directive establishes a Community GHG emissions trading scheme from 2005, to enable the Community and the Member States to meet their Kyoto Protocol commitments. Directive 2004/101/EC reinforces the link between the EU's emission allowance trading scheme and the Kyoto Protocol by making the ...