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Environmental News>

The EU's carbon dioxide emissions trading mechanism has stalled.

2011-02-08

To mitigate global warming and control greenhouse gas emissions, the European Union mandates that power plants and industrial facilities emitting carbon dioxide must pay carbon dioxide emissions fees. The EU Emissions Trading System (ETS) is the world's largest carbon emissions trading mechanism, generating €90 billion in revenue annually from carbon dioxide emissions trading.

The EU stated that carbon dioxide trading will continue until January 26, 2011, and the allocation and transfer under pollution laws will remain in effect. Following the decision of the Paris carbon dioxide exchange BlueNext to terminate trading, the EU has already suspended carbon dioxide emissions trading in the Czech Republic, Greece, Iceland, Poland, and Austria.

A report on the European Community's Greenhouse Emissions Authorizations (EUAs) indicates that Czech companies are emitting excessive amounts of carbon dioxide, effectively stealing €6.7 million. If member states reduce production or upgrade equipment to decrease carbon dioxide emissions, they can sell emission credits to companies exceeding their limits. These credits will then be reduced in the future, thus enabling companies to reduce their carbon dioxide production.

Source: Bureau of International Trade

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