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Judgment No. 5087/2009 of July 17, 2009 (Supreme Court of Spain, Administrative Litigation Division, Section 5)

Jurisdiction: Spain

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: Arcelor Espa̱a, S.A. (previously known as Arcelaria Corporaci�_n Sider̼rgica, S.A.) (Corporation)

Side B: Council of Ministers of Spain (Government)

Core objectives: Sought declaration that both were invalid

Arcelor España, S.A. (previously known as Arcelaria Corporación Siderúrgica, S.A.) challenged the decision of the Council of Ministers of Spain of January 21, 2005, declaring the individual assignment of emissions credits for the 2005-2007 term. Arcelor argued the decision was void because (1) the European norm on which it was based violated the principles of equality, freedom of enterprise, the right to property, and rule of law; and (2) Spanish Law 1/2005 of March 9th, which transposed the EU's Directive 2003/87/EC, was also invalid as to its applicability to the iron and steel industry and not to others that compete with the same (e.g. the chemical sector and the sector for non-ferrous metals). The Court rejected Arcelor's arguments and dismissed its request for remedy.
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