HC Deb 28 October 2003 vol 412 cc170-1W
Norman Baker

To ask the Secretary of State for Trade and Industry whether the allocation of allowances under the EU Emissions Trading Scheme will benefit low carbon technologies such as combined heat and power. [133115]

Mr. Bradshaw

I have been asked to reply.

The Government are aware of concerns that the EU Emissions Trading Scheme may act as a disincentive for the installation of combined heat and power (CHP) technologies. For this reason we are considering options for the treatment of CHP plants in the process of developing the National Allocation Plan.

The CHP industry believe that supplying operators in this situation with allowances for free from a limited CHP set-aside may act as an incentive. In this case operators installing new CHP plants would be provided with allowances equal to the difference in emissions between their existing or proposed traditional boiler and the proposed CHP plant. We are considering this and other options in the draft National Allocation Plan which we intend to publish for consultation in early December, giving industry an opportunity to comment on the various options.