European officials are under mounting pressure to tighten the pollution limits on European industry in the second phase of its flagship emissions trading scheme. Such a move is essential, critics said, to restore the scheme’s credibility and to make a meaningful contribution to tackling climate change.
Officials involved in planning the first phase of the scheme stand accused of being grossly overgenerous in issuing polluting permits to 12 000 European power plants and industrial installations, responsible for more than half of the European Union’s carbon dioxide emissions. The results showed that industrial sites in many member countries produced much less pollution last year than they were allocated — sending the fledgling market in carbon permits through the floor.
Centrica, owners of British Gas, said of phase two of the scheme: ”We would support the biggest possible cuts in allocations.” A spokesperson added that a revised scheme should impose a greater level of auctioning of carbon dioxide permits in the next period, which runs from 2008 to 2012.
Friends of the Earth’s senior climate campaigner, Germana Canzi, said: ”Many governments gave away far too many pollution permits to their industries. They must now all urgently review their strategy for tackling climate change and ensure tougher targets are set on industry pollution for the next phase of the scheme.”
The government of the United Kingdom is considering asking for an increase in pollution permits for British industry in the next phase.
European officials defended the scheme, blaming the mild winter in early 2005, soaring energy prices leading to reduced output, early use of clean technology and even the rain (promoting more hydro-power) for the fact that the amount of carbon emitted last year was 63,6-million tonnes below the total allowance of 1,83-billion tonnes — or a gap of 2,5%.
Liberal Democrat environment spokesperson Chris Huhne said most people would be surprised by the scale of the emissions from the companies identified in a league table published by The Guardian. Top was power company E.ON with 26-million tonnes of carbon dioxide, followed by RWE NPower (21-million), Drax (20-million), Corus (19-million) and EDF energy (18-million) and Keadby power station (18-million).
Matthew Farrow, head of environment policy at the Confederation of British Industry, said a lot of the emissions by the electricity generators were driven by the demand from households. He said businesses accepted the need to cut emissions, but there should be equal pressure on households to take action. — Â