Emissions trading projects and the "additionality" minefield

Work is under way to develop rules to allow emissions reduction projects - such as energy efficiency initiatives - to sell credits under the UK's emissions trading scheme. However, the question of whether a project leads to "additional" emissions savings is proving to be a major stumbling block. Project developers claim that too strong an emphasis on environmental integrity will kill the scheme - while environmental groups say the projects mechanism is flawed and should be scrapped. The debate is overshadowed by EU and international trading systems which will overlap with - and possibly make redundant - any rules devised for the UK.

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