Pemalink: editorial_article/will-the-eu-carbon-trading-market-die
By: Cool Editor :: 2 years ago
Will the EU Carbon Trading Market die?
The EU greenhouse gas Emissions Trading System covers around 10,500 installations across the 27 Member States of the European Union plus Iceland, Liechtenstein and Norway which are required annually to surrender emission allowances equal to their emissions in the previous year. It is the world's largest CO2 trading system and forms the cornerstone of the EU's strategy for meeting its emission reduction targets cost-effectively.
The Community Independent Transaction Log (CITL) records the issuance, transfer, cancellation, retirement and banking of allowances that take place in the registry.
It is mandatory for each Member State to have a national registry. The number of registries that have gone online can be seen from the following web site: CITL. These registries will ensure the accurate accounting of all units under the Kyoto Protocol plus the accurate accounting of allowances under the Community scheme for greenhouse gas emission allowance trading.
Carbon trading has been extremely efficient both in the States and in Europe for reducing emissions. However according to a not-for-profit organisation, Sandbag, EU emissions have fallen drastically, leaving carbon trading scheme high and dry.
Sandbag was established in October 2008, and focused on scrutinising the workings of the EU Emissions Trading System the world’ most extensive climate change policy to date.
Commenting on the new data, Bryony Worthington, Founder and Director of Sandbag said:
“This new information makes it clearer than ever that the EU must increase its climate ambitions. Caps are now sitting above emissions and we are already over half way towards meeting the caps that have been set for 2020. Emissions are falling faster than could have been imagined, but this recession could have a silver lining for the environment and the economy. If the caps are tightened then the EU can grow back to a position of economic strength through green investment.”
So will the EU let its carbon trading market die or will they act swiftly by addressing the emissions targets? We'll keep an eye.
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"Carbon trading has been extremely efficient both in the States and in Europe for reducing emissions. " - this is rather optimistic, in actual fact what the three phases of the EU system have and will entail is a free transfer of nearly 18 billion euro's worth of free carbon permits to the Union's worse / largest polluters. The recession has been the largest single factor in influencing the total GHG emissions here in Europe. Sandbag reckon that we will need to withdraw 2.3 billion Carbon units from the EU market before the scheme will start to have the desired impact (see http://www.naturalchoices.co.uk/EU-Emissions-Trading-scheme-fails?id_mot=10) This is very unlikely to happen when you see the level of corporate lobbying taking place by the likes of Arcelor Mittal and Lafarge to obtain a huge credit of pollution rights (see http://www.corporateeurope.org/climate-and-energy/news/2010/05/21/carbon-leakage-threat-exaggerated)
By: Natural Choices :: 2 years ago