DTI and Defra disagree over carbon trading

The BBC has reported that the DTI wants big emitters only to be responsible for 30 million tonnes of carbon a year under the EU Emissions Trading Scheme (ETS). Defra argues they should be responsible for 80 million tonnes

The DTI believes this harms big business unfairly. The argument with Defra is hampering a deal over the next stage of the ETS. A compromise of 50 million may be in the offing.

This may explain the leak yesterday that small and medium-sized firms may be included in the scheme, to spread the burden.

It also follows a report by the Carbon Trust that showed many firms - particularly in retail and commerce - were guilty of squandering energy.

The Low Carbon Kid argues that this is a reason to bring in TEQs (see link on the right). Everyone can then make money out of carbon trading, and help the environment.