Hungary is dissatisfied with the changes that the European Commission has imposed on its national allocation plan (NAP) for the 2008 – 2012 period. In particular, the Commission rejected allocation of allowances to sectors which did not report emissions in 2005. This is the 19th NAP assessed by the Commission. NAPs determine (i) each Member States’ “cap” on the total amount of CO2 emitted by national installations and (ii) the number of emission allowances for each installation. The Commission approved Hungary’s annual allocation of 26.9 million tonnes of CO2 allowances, 12.4 per cent less than proposed. Hungary is considering whether to challenge the Commission’s decision before the European Court of Justice, a step already made by Slovakia and also being contemplated by the Czech Republic and Poland.