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Britain sets cash incentive for emissions trading

09.03.2002
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Britain sets cash incentive for emissions trading
LONDON - Britain said this week it had an indicative budget of 150-200 million pounds ($213.2-$284.2 million) over five years for its soon-to-be launched pollution trading scheme.

The money will be given as an incentive for businesses that pledge to cut the most pollution, with a cap at 20 percent of the yearly fund for any one company. The budget had been previously estimated at 215 million pounds ($305.5 million). The 46 companies that have signed up, including blue-chips such as Barclays, British Airways and BP, will bid for the government money via a competitive auction taking place on Monday March 11. The definitive budget will be announced after the auction. Under the terms of the voluntary scheme, participants will agree to cut greenhouse gas emissions, blamed by many as contributing towards global warming, 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 highest cost of reducing emissions. Trading is due to start on April 2. The scheme is designed to significantly cut the cost for British firms of complying with the Kyoto Protocol, with the government target to cut emissions by 23 percent on 1990 levels by 2010. REUTERS NEWS SERVICE
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