+------------------------------------------------------------------------------+
EU Plan to Expand CO2 Market by 2015 Infeasible, Researcher Says
2010-10-20 10:00:32.507 GMT
By Ewa Krukowska
Oct. 20 (Bloomberg) -- The European Union's ambition to
create a carbon market embracing 33 nations in the Organization
for Economic Cooperation and Development within five years is
infeasible, according to Climate Strategies.
"By 2015 an OECD-wide carbon market is not going to
happen," said Richard Folland, managing director at Climate
Strategies, a group of climate policy specialists based at
Cambridge University in the U.K. "But progress can be made
toward harmonization over the longer term."
Emissions-trading systems in various countries can be
harmonized through fungibility of credits, assisted by bilateral
and regional policy cooperation, Folland told a Platts seminar
in Brussels today.
The EU carbon market, set up in 2005, is the world's
largest emissions cap-and-trade program. It covers about 12,000
facilities that produce energy or goods ranging from paper to
cement, requiring them to have an allowance for each metric ton
of CO2 they let off.
"Countries looking to introduce carbon trade may learn
from the European experience," Folland said.
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>
--Editors: Rob Verdonck, Jonas Bergman
To contact the reporter on this story:
Ewa Krukowska in Brussels at +32-2-237-4331 or
ekrukowska@bloomberg.net
To contact the editor responsible for this story:
Stephen Voss at +44-20-7073-3520 or
sev@bloomberg.net
