29 Nov 2007 04:11:46
EU trading scheme set to reward carbon capture
The European Commission is set to propose emission trading scheme credits for companies that capture and store their carbon instead of releasing it into the atmosphere, according to reports.
Draft European Union legislation, obtained by Reuters, comes as part of a wider set of rules relating to climate change that aim to set limits on the amount of carbon dioxide businesses produce.
The plans would be particularly relevant to the fossil fuel industry, with large scale operations required to have the equipment necessary to trap and store carbon dioxide.
"CO2 captured and stored will be credited as not emitted under the emissions trading scheme," the draft legislation stated, Reuters reported.
"The Commission addressed the economic, social and environmental implications of mandatory carbon capture and storage...and concluded that at this time a mandatory requirement should not be imposed," it added.
Any legislation would operate in conjunction with the EU Emissions Trading Scheme introduced in 2005, a measure that put a price on the carbon emitted by businesses and established a market for its trading.