§ Lord Kennetasked Her Majesty's Government:
Whether they will agree to the setting up of a free market in pollution permits, as proposed by some parties at the Kyoto meeting on global warming; and, if so, what is their estimate of the effect this might have on the economic development of poor countries whose governments have sold off their permit entitlements.
§ Baroness HaymanThe Kyoto Protocol allows for the possibility of emissions trading, subject to rules and guidelines to be developed. The Government will be working with their EU partners and other countries to develop the rules for emissions trading to ensure that it becomes a useful way to maximise reductions, and not a loophole.
The Kyoto Protocol only allows for emissions trading between countries with targets for the limitation or reduction of greenhouse gas emissions, which do not include developing countries at present.