UK Businesses Miss Carbon Targets - Emissions Up 3.6% YOY In 2006 - Financial Times

[hatrack]

British businesses increased their greenhouse gas emissions by 3.6 per cent in 2006, exceeding the quota set by the government and forcing some companies to buy extra allowances. The European Union’s emissions trading scheme, which imposes a cap for some energy-intensive sectors, was meant to curb carbon dioxide emissions from industry.

But as Thursday’s figures showed, companies in the power generation sector increased emissions and were forced to purchase extra allowances, buying about 34m tonnes of carbon under the EU scheme. The cost of buying the allowances ranged from €200m to €600m (£137m-£410m).

British generators were among very few businesses to have to buy extra emissions rights among the 12,000 industrial facilities across Europe covered by the scheme. Most member state governments issued their industries with far more allowances than they needed, meaning almost none had to buy extra. The UK government, however, imposed a tight cap on emissions, in line with guidance from the European Commission. The carbon price collapsed last year when it emerged that a surplus of permits had been allocated. The price fell from €30 to €11 within a few days, before ending the year at about €7. On Thursday, it stood at about €0.30.

Power generators were the chief cause of the the rise last year, with power stations producing 182m tonnes of carbon dioxide in 2006, compared with 172m in 2005, owing to the shift to coal when gas prices rose. Many other sectors, including refineries and offshore oil and gas, reduced their emissions slightly. But the iron and steel industries and cement makers also produced slightly more. These sectors had more than enough emissions allowances to cover their needs.

EDIT

http://www.ft.com/cms/s/d9244fc8-04b7-11dc-80ed-000b5df...

[razzleberry]

1. 34 MetricTons --> ten Euros ...go here for the real price

http://www.climatecorp.com/pool.htm