The government looks set to provoke another damaging row with the European Commission over greenhouse gas emissions by deliberately missing the deadline for allocating emissions allowances to British businesses.

Under the terms of the European Union's emissions trading scheme, all member states must submit drafts of their "national allocation plans", detailing the amount of carbon dioxide they propose to allow businesses to emit, for the second phase of the scheme by the end of June. The first phase of the scheme began in 2005, while the second will run from 2008 to 2012.