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UK appoints former oil boss to push emissions trade

05.02.2002
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UK appoints former oil boss to push emissions trade
LONDON - Britain yesterday appointed a former oil company boss to promote the government\'s soon-to-be-launched pollution trading scheme to business. Britain wants greenhouse gas emissions, blamed by many scientists for contributing to global warming, to fall by 23 percent from 1990 levels by 2010.

\"This scheme is a great example of how climate change can be good for business,\" said Chris Fay, who previously headed Royal Dutch/Shell subsidiary Shell UK. So far 46 businesses, including such blue-chip firms as Barclays , British Airways , BP , Sainsbury\'s , Royal Dutch/Shell and TotalFinaElf have signed up for the scheme, which is the first of its kind in the world, the Department of Environment, Food and Rural Affairs said yesterday. Under the terms of the scheme, participants signing up will agree to cut greenhouse gas emissions, either in-house or by buying and selling carbon allowances. Companies with the lowest cost of reducing emissions will be able to sell surplus pollution permits to those with the higest cost of reducing emissions. The 46 companies will bid via a competitive auction for some of the 215 million pounds sterling ($151 million) of government money spread over five years towards the scheme. Winning bids will be from those companies which promise to cut emissions by the highest amount. Trading is set to start on April 2. The scheme is designed to significantly cut the cost for British companies of complying with the Kyoto Protocol with the government estimating it could be 80 times less costly than other possible compliance measures. \"I am delighted that these 46 businesses have recognised the very real benefits extend beyond environmental integrity for its own sake; they impact the bottom line and tangible gains are already being realised,\" Fay said in a statement. REUTERS NEWS SERVICE
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