Blair urged to do more to reduce emissions

Monday, 7 February 2005 12:00 AM

Despite Tony Blair's prioritisation of climate change on the international agenda, individual domestic policies are not leading to carbon emission reductions.

According to a new report by the environmental think-tanks Green Alliance and the Institute for European Environmental Policy the EU's emission trading scheme, which established a market in permits to emit carbon dioxide, does not go far enough.

The scheme is unlikely to make much of an impact in its initial phase because each member state was allowed to decide how many carbon allowances it issued to its industry, the report argues. Too many permits were distributed, lowering the price of carbon and creating little inducement to cut emissions, it says.

After speaking to Government, business and independent experts to determine the range of incentives designed to encourage businesses to cut carbon dioxide emissions, report co-author Rebecca Willis said a "very confusing picture" emerged.

"The overall package of policy measures has to be both strengthened and simplified to make sure that businesses are helped to reduce their carbon emissions," she said.

"We need a good emissions trading system to get businesses thinking about carbon as a valuable commodity."

There is praise in the report for the Renewables Obligation, under which the Government hopes to boost the British renewable energy market by requiring all electricity suppliers to supply a specific proportion of their electricity from this sector.

This is judged to have been successful in promoting wind energy, but there is a need to widen support to other forms such as solar power, the report concludes.

The report urged the Government to use its presidency of the EU later this year to toughen the emission trading scheme, increase the Climate Change Levy and offer rebates to businesses that are performing well.

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