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Monday, 21st August 2006 14:15
UK's Defra says EU's Emissions Trading Scheme scheme to be expanded
LONDON (AFX) - The Department for the Environment, Food and Rural Affairs said the EU's Emissions Trading Scheme in the UK will be expanded to cover additional activities at 160 installations, responsible for 9.5 mln tonnes of carbon dioxide not covered in the current phase of the scheme, according to a statement released by the Dept Trade & Industry.
The statement said today's publication of the National Allocation Plan (NAP), which has to be approved by the European Commission, details the quantity of carbon allowances to be allocated to individual installations.
On June 29 2006, the UK Government announced that the second phase of the ETS would deliver additional savings of 8 mln tonnes of carbon each year.
The NAP also provides measures for the removal of installations, such as hospitals, universities and the smallest industrial emitters within the scheme, that are responsible for relatively small amounts of emissions, but who face a disproportionate burden in terms of compliance with the scheme.
Currently, around 10 pct of the installations in the first phase of the EU ETS are responsible for only 0.1 pct, or around 1.25 MtCO2, of the scheme's emissions. The Government has therefore decided to consider more appropriate measures for incentivising emissions reductions for these installations.
Environment and Climate Change Minister Ian Pearson said: 'Our plans for the second phase of the emissions trading scheme expands its coverage and will result in more carbon emissions being monitored. We are focusing on the biggest carbon emitters whilst removing those businesses where the costs of the scheme outweigh the environmental benefits. Emissions trading is about providing business with a cost effective way of reducing emissions.
'The emissions trading scheme provides business with the flexibility and a choice as to how to tackle carbon emissions. Industries can make a business decision whether to reduce emissions or to buy reductions from elsewhere.'
Department of Trade and Industry Minister Malcolm Wicks said: 'Today's announcement provides further certainty for business as it sets the emissions allocations up until 2012. UK business is playing its part in reducing carbon emissions and in developing this plan we have taken account of competitiveness implications. We have sought to improve and simplify the rules of the Scheme building on our experience of Phase I.'
Emissions trading sets a cap on carbon emissions from European industries. Under the scheme, installations that emit less carbon than their allocation are able to sell allowances on the newly established carbon market to installations which need to buy
allowances to cover extra emissions. Putting a price on carbon creates an incentive for industry to invest in low carbon technology.
The statement added the Government has been working with the European Commission and other Member States to ensure a more level playing field for the scheme in the second phase to ensure that Governments deal with businesses in a harmonised way. The Government has also supported the Commission in its efforts to enforce tough caps so that the scheme provides the appropriate incentives for investment in clean technology.
newsdesk@afxnews.com
nes
COPYRIGHT
Copyright AFX News Limited 2005. All rights reserved.
The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
UK's Defra says EU's Emissions Trading Scheme scheme to be expanded
LONDON (AFX) - The Department for the Environment, Food and Rural Affairs said the EU's Emissions Trading Scheme in the UK will be expanded to cover additional activities at 160 installations, responsible for 9.5 mln tonnes of carbon dioxide not covered in the current phase of the scheme, according to a statement released by the Dept Trade & Industry.
The statement said today's publication of the National Allocation Plan (NAP), which has to be approved by the European Commission, details the quantity of carbon allowances to be allocated to individual installations.
On June 29 2006, the UK Government announced that the second phase of the ETS would deliver additional savings of 8 mln tonnes of carbon each year.
The NAP also provides measures for the removal of installations, such as hospitals, universities and the smallest industrial emitters within the scheme, that are responsible for relatively small amounts of emissions, but who face a disproportionate burden in terms of compliance with the scheme.
Currently, around 10 pct of the installations in the first phase of the EU ETS are responsible for only 0.1 pct, or around 1.25 MtCO2, of the scheme's emissions. The Government has therefore decided to consider more appropriate measures for incentivising emissions reductions for these installations.
Environment and Climate Change Minister Ian Pearson said: 'Our plans for the second phase of the emissions trading scheme expands its coverage and will result in more carbon emissions being monitored. We are focusing on the biggest carbon emitters whilst removing those businesses where the costs of the scheme outweigh the environmental benefits. Emissions trading is about providing business with a cost effective way of reducing emissions.
'The emissions trading scheme provides business with the flexibility and a choice as to how to tackle carbon emissions. Industries can make a business decision whether to reduce emissions or to buy reductions from elsewhere.'
Department of Trade and Industry Minister Malcolm Wicks said: 'Today's announcement provides further certainty for business as it sets the emissions allocations up until 2012. UK business is playing its part in reducing carbon emissions and in developing this plan we have taken account of competitiveness implications. We have sought to improve and simplify the rules of the Scheme building on our experience of Phase I.'
Emissions trading sets a cap on carbon emissions from European industries. Under the scheme, installations that emit less carbon than their allocation are able to sell allowances on the newly established carbon market to installations which need to buy
The statement added the Government has been working with the European Commission and other Member States to ensure a more level playing field for the scheme in the second phase to ensure that Governments deal with businesses in a harmonised way. The Government has also supported the Commission in its efforts to enforce tough caps so that the scheme provides the appropriate incentives for investment in clean technology.
newsdesk@afxnews.com
nes
COPYRIGHT
Copyright AFX News Limited 2005. All rights reserved.
The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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