14 Mar 2002 – UK government department Defra yesterday announced the 34 organisations had successfully bid to join the UK Emissions Trading Scheme (ETS) in which à‚£215m of incentives funding was available.
Over the five years of the scheme, participating companies have pledged to reduce their annual greenhouse gas emissions by more than four million tonnes of carbon dioxide, over 5 per cent of the planned reduction in the UK’s annual emissions by 2010. Firms can begin trading under the scheme at the start of April.
Defra expects more participants to join the scheme later this year, as the nearly 6000 companies with Climate Change Agreements can use the scheme to meet their targets, or to sell any over-achievement. Approved emission reduction projects will also be able to sell credits into the scheme.
Dr Chris Fay, official “ETS champion” and chairman of the Government’s Advisory Committee on Business and the Environment (ACBE) commented, “The auction has been an enormous success in terms of obtaining the maximum number of emissions reductions. It vindicates the intent of the scheme and clearly brings out businesses’ will to embrace an emissions trading market. It is a very exciting time for UK businesses, and particularly for the 34 organisations now participating in the UK scheme, as we take our place as the world leader in greenhouse gas emissions trading.”
Environment Minister Michael Meacher said, “I am very pleased at the success of the auction. This is the first trading scheme of its kind and demonstrates the UK’s commitment to fully meeting its obligations under international climate change agreements.
“Not only will this deliver cuts equivalent to over four million tonnes of carbon dioxide over five years, it will give UK companies invaluable experience of emissions trading at a national level. This will put the UK in a good position when global trading starts.”
The maximum that any one company can receive is 20 per cent of the à‚£215m available or à‚£43m. The 34 companies who have successfully bid received à‚£53.37 per tonne of carbon dioxide emission reduction.
Trading is set to begin from 2nd April 2002, when participating organisations will be able to trade allowances to meet their target at minimum cost. Organisations can meet targets by reducing emissions themselves or by buying surplus allowances from another participating organisation.
Organisations must meet each of five annual targets in order to earn their share of the Government’s incentive pot. Allowances can also be saved for use against future annual targets in the scheme, and a company’s own reductions can also be banked beyond the end of the scheme and into the Kyoto commitment period, 2008 – 2012.
The organisations that have taken on greenhouse gas targets through the auction which took place over 11-12 March and will be entering into the scheme at the beginning of April are:
Asda Stores Ltd
Barclays Bank plc
Battle McCarthy Carbon Club
Blue Circle Industries plc
British Airways plc
British Sugar plc
Budweiser Stag Brewing Company Ltd
Dana UK Holdings Ltd
Dupont (U.K.) Ltd
EGNI (Wales) Ltd
First Hydro Company
Ford Motor Company Ltd
General Domestic Appliances Ltd
GKN (U.K.) plc
Imerys Minerals Ltd
Ineos Fluor Ltd
Kirklees Metropolitan Council
Land Securities plc
Lend Lease Real Estate Investment Services Ltd
Marks & Spencer plc
Mitsubishi Corporation UK plc
The Natural History Museum
Quantum Gas Management
Rhodia Organique Fine Ltd
Royal Ordnance plc
Shell UK Ltd
Somerfield Stores Ltd
Tesco Stores Ltd
UK Coal Mining Ltd