Earth Equity News

European Commission Proposes Tough Reforms to Carbon Trading System. By Mark Milner, London Guardian, June 9, 2008. "Hopes of a global deal on climate change would be raised by early adoption of the European commission's tough reforms of the region's carbon trading regime, according to a report out today. The Carbon Trust... said the reforms... were a 'big, bold stride in the right direction'. It wants the reforms adopted by next spring in order to boost the chances of reaching a global climate change deal at the international climate conference in Copenhagen in December next year... Under the commission's proposals, the scope of the [emissions trading] scheme will be stretched to include other sectors, greater harmonisation of rules between member states and an increase in the number of permits which will be auctioned rather than handed out for nothing... 'By making this commitment as early as possible, the EU has the opportunity to send a strong signal to the new U.S. administration and have a powerful impact on the actions of the global community at Copenhagen,' [said Michael Grubb, the Carbon Trust's chief economist]... The report acknowledges there are problems which need to be settled, including which sectors should get free permits and companies migrating because of the impact of the ETS. It argues that the new measures provide the level of certainty that companies and investors seek."