Environment Minister praises UK Emissions Trading System’s remarkable progress
The final UK results for the first phase of the EU Emissions Trading System, which ended in December 2007, demonstrated that carbon trading can work and helped to cement the UK’s role at the centre of the global carbon market, Environment Minister Phil Woolas said today.
In 2007 the UK had a shortfall of 27.6 million allowances, meaning permits had to be purchased from elsewhere in the EU.
Across Phase I of the scheme the UK had a shortfall of 88 million allowances – a reflection of the fact that the caps set on emissions for installations in the UK were much more realistic than the overallocation seen in some other countries during Phase I.
Phil Woolas praised the robust performance of the system through its first phase, saying:
“Carbon trading is already playing a crucial role in the fight against climate change, and I am pleased that the UK is taking a lead within Europe in developing this market.
“For the second year running, compliance with the ETS has been 100 per cent. This shows that companies are taking their responsibilities seriously and that carbon reduction and trading has become a normal part of their business.
“With the tougher decisions made by the European Commission on other Member States’ national allocation plans, Phase II of the ETS is already operating strongly with realistic caps that ensure scarcity in the carbon market.”