CBI: Adopt emissions trading schemes
The CBI says emissions trading schemes should be adopted by other countries to help cut global carbon emissions and tackle climate change
As the United Nations' Climate Change Conference in Copenhagen meets today, the UK's leading business group argues a scheme, which caps emissions and allows firms to buy permits for carbon, such as the EU Emissions Trading Scheme, should form the basis for a global carbon market.
John Cridland, CBI Deputy Director-General of the CBI, said: "UK firms have a strong interest in a successful outcome at Copenhagen. After all, it will be business that delivers the new infrastructure and develops the products and services needed for the shift to a low-carbon economy.
"The last thing we want is a disorderly transition with countries making their own arrangements and moving at different paces.
"First, we want all nations to deliver a strong commitment to reducing emissions at Copenhagen.
"Second, the foundations should be laid for a global market for carbon, by developing schemes that cap emissions and create a market for trading in carbon permits.
"We believe the EU Emissions Trading Scheme is one of the best mechanisms for guaranteeing year-on-year cuts to emissions in a cost-effective way. By forcing polluters to pay more for a decreasing number of permits, that in turn encourages investment in green technology and energy efficiency.
"Third, there needs to be broad agreement about how the wealthier nations will share the bill for helping the developing world make the move to a low-carbon economy.
"With the right deal at Copenhagen, there could be huge opportunities for the UK. Sectors where we could build a real advantage and create jobs include offshore wind, low-carbon vehicles, carbon finance and clean coal.
"But there needs to be a level playing field, or UK companies could find themselves at a serious disadvantage as manufacturers of commodities such as steel or cement shift production to countries where emissions targets aren't as tough."
The CBI is today publishing a new report on EU Emissions Trading Scheme called Trading Up: The Future of Emissions Trading.
Among the recommendations in the report are:
· Ensuring the cap is set at the right level
· Expanding emissions trading to include aviation and shipping, ideally through a global scheme for those sectors
· Protecting firms at risk of carbon leakage, while ensuring measures are focused on those sectors which genuinely need protection.
