Brussels, 27/05/2008 (Agence Europe) - Duly verified data available on CO2 emissions from member states in 2007 confirm the European Commission's conviction that the Community Emissions Trading System (EU ETS), with tighter emissions caps set for the 2008-2012 trading period, will work better henceforth.
According to information provided by member states' registers, total CO2 emissions from businesses taking part in ETS increased by 0.68% in 2007. This increase, however, which is due to the rise in the number of installations taking part in the scheme, is well below the 2.8% growth in the EU's Gross Domestic Product (GDP) recorded over the same period, the Commission underlines in a press release on 23 May.
Tighter emission caps should remedy the over-generous allocations of emission quotas, responsible for the collapse in the price of carbon per tonne during the experimental phase of ETS (2005-2007). Total emissions verified in 2007 reached 2,050 billion tonnes of CO2, i.e. 0.8% more than the 2,034 billion tonnes registered in 2008. However, when adjusted for the entry and closure of installations since 2006, which led to a net addition of 581 installations to the system between 2006 and 2007, the overall rise in emissions last year was only 0.68%. Out of the 11,186 ETS installations in 2007, 68 failed to surrender enough allowances to cover their 2007 emissions by the 1 May 2008 deadline. “These installations are typically small and collectively account for less than 0.08% of allowances allocated”, the Commission specifies. It plans to publish reports in June on the compliance situation and installation level in each member state. (A.N.)