e360 digest


28 Oct 2009: Surplus of Carbon Credits
Threatens EU Emissions Trading Plan

The European Union’s emissions trading scheme — which puts a price on carbon dioxide emissions with the aim of reducing greenhouse gas pollution — is threatened by a vast number of emissions credits earned by major industries and power plants in Russia, Ukraine, and Eastern Europe. Peter Zapfel, deputy director of the environment department at the European Commission, said that because of the Eastern European economic collapse of the 1990s and loopholes in the EU emissions trading scheme that began in 2005, Russian and Eastern European enterprises have racked up 10 billion emissions credits because they released fewer greenhouse gases than originally allocated under the Kyoto Protocol. As these enterprises begin selling these credits on the EU carbon market, the price of emissions allowances could plummet, thereby defeating the goal of slashing CO2 emissions by establishing a high price on carbon pollution. Zapfel called the surplus credits the “gorilla sitting in the background and nobody dares to touch it.” The price of EU carbon allowances has fallen from a peak of 30 Euros ($44) in 2006 to roughly 10 Euros ($15) this year. The EU’s emissions trading scheme, which covers more than 10,000 major carbon emitting power plants and factories, is designed to cut CO2 emissions by 21 percent below 2005 levels by 2020.

Email      Recommend     Tweet     Stumble Upon     Digg     Share    


Yale
Yale Environment 360 is
a publication of the
Yale School of Forestry
& Environmental Studies
.

SEARCH e360



Donate to Yale Environment 360
Yale Environment 360 Newsletter

CONNECT

Twitter: YaleE360
e360 on Facebook
Donate to e360
View mobile site
Bookmark
Share e360
Subscribe to our newsletter
Subscribe to our feed:
rss


ABOUT

About e360
Contact
Submission Guidelines
Reprints

e360 video contest
Yale Environment 360 is sponsoring a contest to honor the best environmental videos.
Find more contest information.


DEPARTMENTS

Opinion
Reports
Analysis
Interviews
Forums
e360 Digest
Podcasts
Video Reports

TOPICS

Biodiversity
Business & Innovation
Climate
Energy
Forests
Oceans
Policy & Politics
Pollution & Health
Science & Technology
Sustainability
Urbanization
Water

REGIONS

Antarctica and the Arctic
Africa
Asia
Australia
Central & South America
Europe
Middle East
North America

E360 en Español

Universia partnership
Yale Environment 360 articles are now available in Spanish and Portuguese on Universia, the online educational network.
Visit the site.

e360 MOBILE

Mobile
The latest
from Yale
Environment 360
is now available for mobile devices at e360.yale.edu/mobile.

e360 VIDEO

Warriors of Qiugang
The Warriors of Qiugang, a Yale Environment 360 video that chronicles the story of a Chinese village’s fight against a polluting chemical plant, was nominated for a 2011 Academy Award for Best Documentary (Short Subject). Watch the video.


header image
Top Image: aerial view of Iceland. © Google & TerraMetrics.

e360 VIDEO

Colorado River Video
In a Yale Environment 360 video, photographer Pete McBride documents how increasing water demands have transformed the Colorado River, the lifeblood of the arid Southwest. Watch the video.

 

OF INTEREST



Yale