The government will set out its emissions policy on Monday following European Commission opposition to plans to raise the UK’s ceiling on carbon emissions under the European Union’s greenhouse gas trading scheme which it believes to be too generous to industry.
The government must choose between an embarrassing climbdown or proceeding with an earlier threat of legal action against the Commission.
Tony Blair’s plan to celebrate the Kyoto protocol, the landmark agreement on climate change which takes effect on Wednesday, will be overshadowed by the continuing disagreement with the EU. The situation is an embarrassment for Mr Blair who has made climate change a priority for his chairmanship of the G8.
Under the EU emissions trading scheme which started on January 1, governments must set caps on the amount of carbon dioxide their country’s industry can emit, with a view to reducing overall carbon dioxide emissions.
Last October, the government filed a revision to its original submission to the Commission, made in April, that would allow industries to emit more carbon dioxide. It said the revision was necessary because of errors in the way emissions had been calculated previously.
The Department for Environment, Food and Rural Affairs said: “We remain confident that the proposed amendments are justified.”
The revisions arose from the Department of Trade and Industry saying that industry should have the capacity to emit more emissions arguing that too low levels could put the UK at a competitive disadvantage. The strategy on carbon and climate change was attacked by the Tories. Tim Yeo, shadow environment secretary, said: “CO emissions in Britain are rising not falling and the government must act now to promote energy efficiency at home and at work much more actively. The government must reward people who drive greener cars and exploit the advantages we have as an island to develop offshore renewable energy sources if we are to meet our own targets.”
Meanwhile, a report from Global Insight, the economic forecaster, to be published today says that the EU’s carbon trading market will have no effect on its overall carbon emissions, as governments across Europe have been too generous in allocating carbon dioxide allowances to their industries.
As part of the government’s strategy to reduce Britain’s greenhouse gas emissions, it is trying to encourage domestic energy users, responsible for 28 per cent of carbon dioxide emissions, to use less power. Today, the government-funded Energy Saving Trust will call on consumers to save energy in a £2.2m advertising campaign.
People will be asked to insulate their houses, replace boilers, and switch to energy-efficient light bulbs and kitchen appliances. Doing so can save money on electricity bills, as well as cutting emissions.
It is part of the government’s energy efficiency commitment, which requires electricity and gas suppliers to cut carbon emissions by promoting improvements in domestic energy efficiency
From The Financial Times