UNITED KINGDOM 1 Apr 2010 Mandatory national carbon trading system in effect

A mandatory national trading system for emissions of carbon dioxide that is related to energy consumption, rather than energy production, comes into effect in Apr 2010. Called the Carbon Reduction Commitment, it applies to non-energy intensive sectors not already covered by climate change agreements and the European Union Emissions Trading System. The threat of heat waves and floods with climate change has prodded the United Kingdom to push harder against the problem.

The system provides a financial incentive to reduce emissions by placing a price on carbon emissions, according to the Environment News Service. Participants must purchase allowances equivalent to their emissions each year. Within that overall limit, individual participants can determine the most cost-effective means to reduce their emissions. The Environment Agency, which has responsibility for implementing the scheme, says it will achieve emissions reductions of at least four million tons of CO2 per year by 2020. The overall emissions reduction target is achieved by means of a cap on the total number of allowances available to the group of participants. Jul/09

RELATED READING:

EU approves state aid for British carbon trading system (Reuters 14 Jul 2009)
http://www.reuters.com/article/environmentNews/idUSTRE56D1Q720090714

EU endorses British carbon reduction commitment (ENS 14 Jul 2009)
http://www.ens-newswire.com/ens/jul2009/2009-07-14-01.asp