Brussels, 08/06/2007 (Agence Europe) - Good news for the climate - in 2006, the EU Emissions Trading Scheme (EU ETS), introduced on an experimental basis, managed to help the EU separate off ('decouple') the CO2 emissions of industrial plants involved, and produce economic growth. The overall level of emissions still needs to be cut but the European Commission says it is confident the EU will be able to meet its Kyoto emission reduction targets.
The total amount of verified emissions from EU ETS installations in the EU25 last year was 2.026 billion tonnes of CO2, 0.8% higher than the 2.010 billion tonnes recorded in 2005. Adjusted for the entry of more than 300 additional installations into the scheme since 2005, the increase in verified emissions from 2005 to 2006 was 0.3%. Both figures are well below the 3% growth in EU Gross Domestic Product recorded last year. At the 1 May deadline, only 1% of participating industrial plants failed to meet their emissions quotas, mainly small-scale plants.
European Environment Commissioner Stavros Dimas was pleased with the outcome, even though the EU did not actually manage to cut emissions. In a press release he commented: "It is very encouraging to see that the mechanics of the EU ETS are working well and that the vast majority of installations have complied with their obligation to surrender allowances. While emissions will not necessarily fall in each year of a trading period, it is important to note that the rise last year was very limited and far below the rate of economic growth. Furthermore, I am convinced that the strict caps we are putting on allowances for the second phase of the ETS starting next year will greatly contribute to cutting our emissions and help us reach our Kyoto targets."
The Emissions Trading Scheme is a market control system designed to help ensure greenhouse gas emissions from energy and industry are cut at the least cost to the economy. The first carbon trading period started with the scheme's launch on 1 January 2005 and ends on 31 December this year. The second trading period will begin on 1 January 2008 and run for five years, coinciding with the period during which the Kyoto Protocol targets must be met. (an)