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EU Should Withhold 1.4 Billion Carbon Allowances, Sandbag Says
2010-09-09 23:00:01.0 GMT
By Mathew Carr
Sept. 10 (Bloomberg) -- The European Union should withhold
1.4 billion tons of carbon permits in the eight years through
2020 as it decides whether to adopt a tougher emissions target,
the environmental lobby group Sandbag said today.
The bloc should hold onto the permits as it considers a 30
percent cut in emissions by the end of the decade, compared with
its present target of 20 percent relative to 1990 levels, said
Bryony Worthington, founder and director at London-based
Sandbag. There is an oversupply of allowances under the less-
ambitious goal, she said in e-mailed statements.
The tightening is needed because the recession has cut
output, exaggerating the oversupply that may hook the region
into using too much fossil fuel "because the emissions trading
system allows the huge volume of unused permits to be carried
over into the next phase," she said.
The third phase of the market, the world's largest, is for
the eight years starting in 2013. The second phase runs for the
five years through 2012, with yearly allocations of about 2
billion metric tons of allowances.
For Related News and Information:
Emission market news NI ENVMARKET <GO>
Today's top energy stories ETOP <GO>
European power-markets home page EPWR <GO>
Sustainability, environmental indexes SEI <GO>
--Editor: Mike Anderson.
To contact the reporter on this story:
Mathew Carr in London at +44-20-7073-3531 or
m.carr@bloomberg.net
To contact the editor responsible for this story:
Stephen Voss at +44-20-7073-3520 or sev@bloomberg.net
