The European Commission yesterday threatened legal action against Greece on yet another environmental issue - emissions of carbon dioxide, which are believed to accelerate climate change.

Greece and Italy were the only EU members singled out for written warnings for failing to submit to Brussels their national plans on how emission allowances will be allocated to local industries.

«If the EU wants to retain its leadership in fighting climate change, it can best demonstrate its determination through the emissions trading scheme, and all member states must be on board,» Environment Commissioner Margot Wallstrom said.

EU regulations compel member states to cut carbon dioxide emissions by allocating allowances to energy-guzzling industries. Under the trading system, meant to start next year, companies that keep their emissions below the ceiling can sell their allowances to firms that exceed the limit.

Under the Kyoto Treaty on global warming, by 2010 Greece's emissions may exceed those of 1990 by a maximum 25 percent.