20 Nov 2008 04:11:46
Carbon allowance sales should sponsor climate projects
Revenue from the sale of carbon emission allowances should be used to fund initiatives that will help the UK achieve its climate change targets, according to a think tank.
The institute for public policy research (ippr) has called on the government to use the £54 million raised through the sale of four million EU emission allowances under the Emissions Trading Scheme (ETS) to support environmental projects and follow the lead of other countries such as Austria and Hungary.
Lisa Harker, ippr co-director, said: "There are many urgent needs both domestic and international - when it comes to tackling climate change, and using the money raised from this auction is one way of ensuring that these needs are addressed during the economic downturn."
She added: "The UK government should follow the lead of other countries and establish a clear link between charging companies for their carbon emissions and investment in measures to help reduce emissions."
As well as the EU's cap and trade ETS scheme, the UK has committed to reducing carbon dioxide emissions by 80 per cent in relation to 1990 levels a target which US president-elect Barack Obama has also said the US will adopt once he becomes president.http://www.egovmonitor.com/node/22083