|
EMISSIONS TRADING – AN OPPORTUNITY FOR
SCOTTISH BUSINESS
A new scheme being introduced by Europe early next
year, which aims to reduce greenhouse gas emissions,
could open up major opportunities for Scottish businesses,
according to Scottish Conservative MEP John Purvis.
As part of a range of measures aimed at reducing environmental
pollution, the European Union is to set up a market
across Europe for the trading of carbon dioxide emissions.
Under the Emissions Trading Scheme, national governments
will allocate an emissions allowance to individual companies.
Any business which is able to reduce its greenhouse
gas emissions to below its quota will be able to sell
the unused portion to other companies within the EU
that have exceeded their own allowance.
Under the Scheme, each EU country must devise its own
National Allocation Plan, setting out total allowances
allocated to the different industry sectors and how
they will be distributed between individual installations.
Details must be with the European Commission by the
end of March 2004. By the same date, all installations
covered by the Scheme must hold a trading permit. Installation
allowances will be allocated by the end of February
each year and must be surrendered by the end of April
the following year.
Outlining the Emissions Trading Scheme today, John
Purvis MEP said:
“The Scheme offers industry a double incentive
to introduce technological innovation. As well as benefiting
from the reduced costs from more efficient operation,
the sale of emission permits will enhance company bottom
lines. The Scheme also offers the opportunity for businesses
to develop trading links with counterparts in other
countries. With the 10 new Accession States likely to
see the greatest growth across Europe in years to come,
the development of links with these emerging countries
would be an astute move by any company wishing to develop
and expand.
"Emissions trading may be a good opportunity for
Scottish companies to increase their profits and help
improve our environment. Meeting our emissions targets
is a major challenge – and emissions trading should
help to square this difficult circle.”
The EU has agreed to an overall reduction of 8% of
its 1990 level of emissions by 2010, with the UK's share
being 12.5%. The Emissions Trading Scheme is part of
a whole programme of EU environmental legislation aimed
at reducing emissions, including promotion of renewable
energy, biofuels, combined heat and power, improved
energy efficiency, and improvements in the transport
and waste management sectors. It will also work alongside
requirements for efficient use of energy in installations
in the Directive on Integrated Pollution Prevention
and Control.
The EU Scheme will start in January 2005 and is mandatory
for electricity generators exceeding a thermal input
threshold of 20 MW, oil refineries, iron and steel manufacturers,
paper, pulp and board manufacturers and the mineral
industry - which account for about 50% of all of the
UK's CO² emissions.
Notes to News Editors
1. The UK aims to reduce CO² emissions by 20% by
2010 - stricter than the EU requirement of 12.5%. Scotland
produces about 12% of the UK's total carbon emissions
but faces a greater challenge. Between 1990 and 1998
the UK's emissions as a whole dropped by 9%, whilst
Scotland’s emissions only reduced by 3%. Over
the same period, emissions from the Scottish energy
sector increased by over 13%, largely due to an increase
in coal-fired electricity exports to England.
2. An outline by John Purvis MEP of the Emissions Trading
Scheme is included in the latest issue of Holyrood Magazine,
published today (Monday 23rd February).
3. John Purvis MEP is Vice Chairman of the European
Parliament's Economic and Monetary Affairs Committee
and Member of the European Parliament’s Committee
on Industry, External Trade, Research and Energy.
For more information, contact:
Polly McPherson
Indigo
Tel: 0131 554 9150
Mob: 07810 891 831
E-mail: polly@indigopr.com
|
