Ministers have decided to increase significantly the number of allowances handed out to British industry under the first phase of the EU emissions trading scheme - although they maintain that the new allocation plan is tougher that its predecessor.1 The claim is undermined by lack of clarity on sectoral allocations and questions over the DTI's latest energy projections. The move has angered the European Commission, which is struggling to hold the line with other Member States' allocation plans, and may jeopardise the UK's chances of joining the trading scheme from the outset.

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