§ Mr. WattsTo ask the Secretary of State for Trade and Industry what progress has been made in setting up a greenhouse gases emissions trading scheme. [12816]
§ Mr. MeacherI have been asked to reply.
In August 2001, DEFRA published the Framework for the UK Emissions Trading Scheme, which sets out the structure of the scheme and what firms need to do to participate. The UK scheme will be the first economy-wide emissions trading scheme in the world.
Currently, we are in the pre-registration period. Firms are registering their interest in the scheme and approaching the Department about their eligibility for joining. For those firms taking on voluntary absolute emissions caps, there is also the opportunity to prepare to bid for a share of the up to £43 million per annum incentive offered by Government. The incentive will be allocated via an auction early next year. Emissions trading will go-live in April 2002. Several forward trades have already taken place.