Emissions Reduction Scheme

HL Deb 27 February 2002 vol 631 c236WA

Baroness Byford

asked Her Majesty's Government:

Further to the answer by Lord Whitty on the progress of the emissions reduction scheme on the 14 January (HL Deb, col. 828), what is the minimum number of participants below which the proposed emissions trading scheme will not be viable. [HL2801]

Lord Whitty

The Government's objectives in setting up a UK emissions trading scheme are cost-effective emissions reductions and to give UK business early experience of emissions trading. These objectives will be met providing there are sufficient participants to ensure competitive pressure in February's incentive auction. As 46 organisations are currently in the process of registering for the auction, the Government are confident that this will be case. Moreover, total participation in the scheme is not limited to those organisations entering through the February auction. There are 3,500 companies in climate change agreements, which can trade on the basis of their energy efficiency targets. There will also be opportunities to enter through approved emission reduction projects, or by simply buying and selling allowances.