UK softens targets for CO2 emission reduction to 15

UK softens targets for CO2 emission reduction to 15.2% by 2010

London (Platts)--6May2004


The UK plans to cut carbon dioxide emissions by 15.2% compared with 1990
levels by 2010 as part of its revised National Allocation Plan (NAP) as part
of the EU's emissions trading scheme, the UK government said Thursday. 

The revised NAP, which has been submitted to the European Commission, compares
to draft plans to cut emissions in the initial 2005-07 phase of the scheme by
16.3% from 1990 levels. Some 1,800 installations are now covered by the scheme
compared to 900 in initial plans, the Department of Environment, Food and
Rural Affairs said. 

"The difference is due to changes in the modeling we have used and as a result
of the information we've received," junior environment minister Elliot Morley
said. "We do plan to do better then this." 

The UK delayed its NAP submission to Brussels due Mar 31 while Defra
fine-tuned its figures in response to a consultation launched in January. The
oil and power industries raised concerns about the preliminary sector
allocations and both offshore operators and refiners balked at the initial
figures saying they unfairly penalize the sectors which are being asked to
achieve large CO2 emission cuts. 

Extracting low levels of oil from offshore fields requires more energy and
therefore the allowances for the offshore sector were revised up, the minister
said without giving specific figures. "We will see an increase in electricity
prices...the exact level will depend on the price of carbon in trading." 

An EU-wide scheme for trading greenhouse gas emission allowances is the main
plank in the region's strategy to meet climate-change commitments under the
Kyoto Protocol. Based on a "cap-and-trade" scheme, it covers refineries, power
generation (including on-site cogenerators of heat and power) and the metals
and minerals, glass, concrete and paper and pulp sectors with a rated thermal
input exceeding 20MW from 2005.