Green business

November 30th, 2001

The EU proposes to start emissions trading in 2005

THE European Commission (EC) has undertaken a major initiative to combat climate change by agreeing on a proposal for emission trading to be implemented in the European Union (EU) by 2005. The proposal will lay foundation for the largest emission trading.

The proposal, adopted recently, is designed to help the EC to ratify the Kyoto Protocol. It includes a draft directive on greenhouse gas emissions trading within the EU; and a communication setting out further measures for reducing greenhouse gas emissions. Environment Commissioner Margot Wallström said, "Emissions trading system will be an important cornerstone in our strategy to reduce emissions in the most cost-effective way."

The emission-trading scheme would cover upto 5,000 plants in the 15 EU states.