In re Macerba de Bailén, S.L, Judgment No. 6888/2008 of Oct. 1, 2008

Summary:

A brick manufacturer, Macerba de Bailén, S.L., brought suit against a decision of the Council of Ministers of Spain of January 21, 2005 approving the assignment of emission allowances to its factory in Bailén at a total of 43.746 tons of CO2 over the course of three years (2005-2007), or 14.582 tons per year. The Court declared the decision of the Council of Ministers null and void as a matter of both Spanish administrative and constitutional law, as well as the laws of the European Union. The administrative record did not adduce any reasons for the Council’s decision to assign to the facility an amount substantially less than requested (27,825 tons of CO2 annually, or a total of 83,475 tons for the 2005-2007 term) though the request was substantiated by technical evidence indicating that the factory was in the process of expanding its production capacity. The Ministry of the Environment was ordered to conduct a new assignment of credits.

At Issue: Challenge to emissions allowance