Archived press release

Government Publishes Emissions Trading Allocation

14 February 2005

The Government today (Monday 14^th February 2005) published details of its allocation levels for the EU carbon dioxide Emissions Trading Scheme (EU ETS) - intended to curb the climate changing emissions from industry. Friends of the Earth criticised the Government's resistance to implementing a tougher scheme - and said the Government should move straight away to its back-up plan.

Under the scheme, power stations, refineries and heavy industry across Europe, which account for approximately half of EU carbon dioxide emissions, will be given a limit on how much carbon dioxide they can emit. Participants in the scheme need to hold sufficient carbon dioxide allowances to match their levels of pollution from Jan 1st. Companies which do not have enough at the end of 2008must pay stiff fines or buy spare allowances from the companies which have managed to reduce their emissions.

The Government submitted changes to its National Allocation Plan in October last year, setting the total number of allowances at 756 million tonnes of carbon dioxide - an increase from the original draft plan agreed with the European Commission. According to the Department of Environment, Food and Rural Affairs, discussions with the Commission are still continuing as the Government believes that its proposed amendment is compatible with the requirements of the EU ETS legislation.

But the Government has recognised that it may need to reduce the total number of allowances, saying that any necessary reduction would come from the electricity generation sector.

Friends of the Earth Climate Campaigner Bryony Worthington said:

"The Government is wrong to continue to push the European Commission to accept a more generous cap on our emissions. The Government has identified a back-up plan for if they fail to get agreement from the Commission, but they should be implementing this now. The power sector can afford to take a much tougher cap and this will help us get closer to our 20% carbon dioxide emissions reduction target by the end of the decade. They need all the help they can get."

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Published by Friends of the Earth Trust