Preparing for battle over Phase II

The deadline is up for governments to submit to Brussels their missions targets for the next phase of the EU Emissions Trading Scheme. And, after it emerged that the scheme is awash with carbon allowances, the scene is set for a struggle between the European Commission (EC), environmentalists, industry and member states…

Observers do, however, seem confident that the EC will rein in any attempts by member states to over-allowance for second phase. "It's not a planning phase anymore, [the Commission] has the regulatory and the political authority to do this" Kate Hampton from Climate Change Capital says. "Last time the Commission managed to cut the cap in a number of countries…This time round the Commission can do better," she adds, noting that the potential for fuel switching in the power sector, from coal to less-polluting natural gas, and for importing carbon credits from outside the EU should be enough to ensure member states meet their Kyoto targets.

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Preparing for battle over Phase II