Domestic Emissions (Hansard, 9 March 2000)

§ Mr. Meacher

The Government, in their new Draft Climate Change Programme, recognise that carbon emissions trading is a key part of the longer-term solution to greenhouse gas emissions. It will complement other measures in the business sector by offering cost-effective and flexible options for achieving emissions reductions. And an early start to emissions trading in the UK should bring valuable experience and expertise to UK business and to the City of London. This will be particularly important in advance of the international emissions trading scheme envisaged by the Kyoto Protocol, and the European trading scheme put forward in the recent European Commission Green Paper.

The design of a domestic greenhouse gas emissions trading scheme has been taken forward by the business-led UK Emissions Trading Group (ETG), with Government officials working closely alongside. The ETG has made speedy progress in addressing the key issues involved in the design of a domestic emissions trading scheme. Outline proposals for a UK trading scheme were presented to Government in October 1999, and the ETG has recently reported to Government on follow-up work in a number of areas. The group's conclusions have moved the UK significantly along the road to the launch of a domestic trading scheme. But much work on the detail of the scheme remains to be done, and the Government will expect to take this work forward with the Emissions Trading Group.

The Government have also said that firms within climate change levy agreements, who have agreed a target to increase their energy efficiency or reduce their carbon emissions, will be able to use carbon trading as one way of helping them meet their targets. And the Government 778W are currently discussing with members of the Emissions Trading Group and climate change levy agreement sectors the most suitable way for these firms to participate in this trading, and in trading with the wider domestic scheme.