How has the UK fared in the EU emissions trading scheme from 2008-10? ENDS presents a detailed overview of this crucial carbon market, a unique sectoral breakdown of how well UK industry and services have managed to keep within their free allowance allocations and how they did so.

Overall, the UK's industrial sectors covered by phase two have seen emissions plummet after the recession from late 2008. As a result, and due to generous free allowance allocations, the UK carbon market now has the lowest excess of emissions over free EU allowances since it crashed in phase one, and economic recovery has been slow.

But the detailed picture is more complex. Emissions have plummeted in power generation and heavy industries such as steel, but many service sectors and light industries such as hospitals and food processing have seen emissions stable and even growing beyond their allowance allocations.  Use of international offsets for compliance has been growing, but is patchy.

In this special report, ENDS has analysed both overall and detailed trends in EU emissions trading scheme compliance in the UK in the first three years of phase two from 2008-10, looking at the 37 very different sectors covered. The analysis provides a unique profile of how business has coped as we approach the end of the phase.


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