<p>The Government has not made such an estimate. The EU Emissions Trading System puts a price on carbon by placing a cap on total EU greenhouse gas emissions from the power and energy intensive industrial sectors. By enabling trading of allowances, emission reductions can take place where the cost of the reduction is lowest. More abatement will be undertaken by organisations with lower abatement costs and those with high abatement costs can instead purchase allowances.</p><p>Over the course of Phase II of the EU ETS (2008-12), UK industrial sectors received around 136 million more free allowances than they needed to cover their emissions over this period. At the same time UK large electricity producers received a shortfall (around 218 million fewer than their total emissions).<Sup>1</Sup></p><p>In addition over the same period, UK participants used around 77 million international project credits for compliance; these trade at a lower price to EU ETS allowances, reducing costs.<Sup>2</Sup><Sup>1</Sup>https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/181586/2012_eu_ets_results_april_2013.pdf<Sup>2</Sup>European Commission published EU ETS cumulative compliance data 2008 to2012:</p><p>http://ec.europa.eu/clima/policies/ets/registry/documentation_en.htm</p>