§ Malcolm BruceTo ask the Secretary of State for Environment, Food and Rural Affairs how she proposes to modify the voluntary status of the UK Greenhouse Gas Emissions Trading Scheme 2002 to comply with the mandatory status of the EU Trading Scheme when the latter comes into force in 2005. [48981]
§ Mr. Meacher[holding answer 15 April 2002]: The Government welcome the principles of EU trading to encourage European industry to gain early experience of trading in advance of international trading under the Kyoto protocol. The Commission's proposal for a EU emissions trading scheme does differ in some respects from the UK scheme; one significant difference is that the Commission's proposal is for a mandatory scheme whereas the UK scheme is voluntary. The Government are working with the Commission and other member states during the negotiation process to develop a less rigid emissions trading scheme for the EU that takes account of existing national trading arrangements and provides for them to run their course. It has always been the Government's intention that the transition between the UK scheme and any EU or international trading scheme will be as seamless as possible.
§ Malcolm BruceTo ask the Secretary of State for Environment, Food and Rural Affairs if she intends that the use of sinks and forest sequestration will be allowed as part of the UK Greenhouse Gas Emissions Trading Scheme 2002. [48983]
§ Mr. Meacher[holding answer 15 April 2002]: Although the Government recognise that carbon sinks can provide environmental and other benefits, they believe that the UK's current priority should be actual emissions reductions, rather than carbon sequestration (either as sinks or storage) because of the complexities and uncertainties involved in forestry projects and other carbon sinks. For the time being, therefore, sinks and forest sequestration projects are not eligible for entry into the UK Emissions Trading Scheme. This approach to sinks and sequestration will be kept under review.
§ Malcolm BruceTo ask the Secretary of State for Environment, Food and Rural Affairs when the rules her Department has drawn up to ensure that the UK Greenhouse Gas Emissions Trading Scheme 2002 delivers emission reductions additional to those required by regulation will be published. [48976]
§ Mr. Meacher[holding answer 15 April 2002]: The Government have already made further details on the treatment of regulatory requirements in the UK 11W Greenhouse Gas Trading Scheme available on request. The Government intend to formally publish these details later this week.
§ Mr. TynanTo ask the Secretary of State for Environment, Food and Rural Affairs if she will make a statement on progress with the UK Emissions Trading Scheme. [51943]
§ Margaret BeckettThe UK Emissions Trading Scheme went live on 2 April with the opening of the innovative, web-based Emissions Trading Registry, which records the transfer of allowances from buyer to seller. A number of trades have already taken place.
A total of 34 organisations successfully joined the Scheme through a competitive auction held in March. In return for taking on legally binding emissions reduction targets, these organisations will each receive a share of the financial incentive that the Government are making available over the five years of the Scheme. They can choose to meet their annual targets by reducing emissions themselves or by buying surplus allowances from other participating organisations. To date, over 50 other organisations have opened trading accounts so that they can buy and sell allowances.
We expect the volume of trades and number of participants to increase in the autumn and beyond when participation in the Scheme widens as some of the 6,000 companies in Climate Change Agreements begin buying allowances to enable them to meet their targets or selling any over-achievement to other participants. Projects that produce quantified reductions in greenhouse gas emissions will also be able, in time and subject to prior approval from the Government, to earn credits that can then be traded through the Scheme.
§ Malcolm BruceTo ask the Secretary of State for Environment, Food and Rural Affairs if she will state the baselines for the average emissions in(a) 1998, (b) 1999 and (c) 2000 for each of the direct participants of the UK Greenhouse Gas Emissions Trading Scheme 2002. [48977]
§ Mr. Meacher[holding answer 15 April 2002]: Direct participants in the UK Emissions Trading Scheme are currently in the process of having their baseline emissions independently verified by organisations accredited for this specific purpose by the UK Accreditation Service. These independent verification organisations will provide the Government with a verified baseline (an average of emissions in 1998–2000 unless there are regulatory requirements to take into account) for each direct participant. Once they have done so, the Government will make the baseline emissions for each direct participant publicly available. The Government expect to publish the first independently verified baselines at the end of this month. They will be available on www.defra.gov.uk/etr.
§ Malcolm BruceTo ask the Secretary of State for Environment, Food and Rural Affairs which of the direct participants of the UK Greenhouse Gas Emissions Trading Scheme 2002 fall under(a) integrated pollution control and (b) the flare consents regime for offshore installations; and what reduction in emissions for these companies is stipulated by the conditions set in their IPC authorisations and flare consents. [48980]
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§ Mr. Meacher[holding answer 15 April 2002]: Three direct participants (DuPont UK Ltd, Ineos Fluor Ltd and Rhodia Organique Fine Ltd) in the UK Emissions Trading Scheme are subject to regulation under Integrated Pollution Control, and two (British Petroleum plc and Shell UK Ltd) that are subject to the Department of Trade and Industry's flare consent regime. The terms of these regulatory requirements under IPC are already available on the public register at the following local Environment Agency offices: Coverdale House, York for DuPont, Richard Fairclough House, Warrington for Ineos Fluor and Rivers House, Bridgewater for Rhodia. The 2002 flare consents for British Petroleum installations and fields in the Emissions Trading Scheme allow 1,132.55 thousand standard cubic metres of natural gas flared per day. For Shell, the comparable number is 698.17 thousand standard cubic metres of natural gas flared per day.