|Policy Type:||Economic Instruments>Market-based instruments|
|Agency:||Department of the Environment, Transport, and the Region (DETR)|
|Climate Change Description:|
Britain is preparing to launch a national emissions trading scheme by April 2001 and the government is considering allowing the scheme to offset the proposed climate change levy. The current plan calls for an Emission Trading Authority to oversee the following three categories of participating companies: 1.) the "absolute sector" of firms that have agreed to annual emissions limits with the government; 2.) the "unit sector" of firms that have accepted emission targets expressed in tonnes per unit of output; and 3.) the "project sector" of firms with specific emission-cutting projects. Those in the absolute sector would get tradable permits to cover their annual emissions. Those in the unit sector would be allocated permits on a performance basis, allowed to trade among themselves, but not to automatically sell to the absolute sector, as this may inflate the sectors overall objective. Those in the project sector would receive credits for the reduction of greenhouse gases and the credits could be sold on the open market. All groups of firms would have the option to agree to targets for all six greenhouse gases covered under the Kyoto Protocol or for just carbon dioxide.
|This record is superseded by:||UK Emissions Trading Scheme|
Last modified: Thu, 14 Mar 2013 15:28:04 CET