GOVERNMENT FAILING TO MEET TARGETS IN 'SPECTACULAR FASHION'

4.02.19pm UTC (GMT +0000) Wed 17th May 2006

A survey of the European Union's emissions trading scheme (ETS) has revealed major shortcomings in the initiative. Under the scheme, power stations, refineries and heavy industry across Europe were given a limit on how much CO2 they could emit.

However, figures show that countries across Europe were given too many pollution allowances or permits by their governments, reducing incentives to cut pollution and cutting the price of traded emissions credits by nearly half.

Lorely Burt, Liberal Democrat MP for Solihull, said,

"The scheme will only succeed if governments set tough but realistic targets for industry emissions. Too many credits in the market place can lead to reduced investment in clean technology and actually increases pollution.

"The Government has relied too heavily on ETS and failed to use other levers, such as green taxation, which can deliver less pollution not only for industry, but for housing, cars and planes which account for nearly 50% of carbon emissions in the UK.

"Green taxes have been falling as a share of the economy since 2000, and are now lower than they were under the last Tory government. Such complacency cannot be allowed to continue if we are to avoid catastrophic environmental consequences over the next decade."

ENDS