UK to Pass Foreign CO2 Credit Rules Next Month
Date: 20-Oct-05
Country: UK
The rules will allow companies to claim credits from foreign projects where emission reductions are cheaper to carry out than curbing pollution from their operations in the UK.
"Making project credits available provide the potential for lower compliance costs for operators by meeting targets through investment in cheaper emissions reductions in other countries," said Elliot Morley, Minister of State for Climate Change and the Environment, in a statement.
The government will bring the rules, known as the Linking Directive, into force on November 13, a government spokesman said.
Most other EU member states are also expected to adopt the directive.
EU member states adopting the directive can use CO2 credits earned through the Kyoto Protocol's Clean Development Mechanism, and Joint Implementation scheme, towards complying with emissions targets set under the EU's trading scheme which started in January.
The Kyoto mechanisms allow rich countries to acquire credits from emissions-reducing projects like windfarms in poor countries which have signed up to Kyoto but have not been set reduction targets.
The government said the credits earned from project mechanisms should be used to supplement credits earned by curbing emissions in the UK.
But it said it would not impose a limit on the amount of project credits used towards compliance in phase one of the European Union's trading scheme (2005-2007).
European rules will force the government to put limits on the number of project credits used to comply with phase two of the scheme (2008-2012).