Carving up the carbon cake: UK takes lead with allocation plan

The UK has set the pace for the EU emissions trading scheme with the publication of Europe's first draft allocation plan.1 Initial allocations for industry sectors other than the power generators go little further than business as usual - although life will get tougher after 2008, when the Government intends to set stricter caps based on its demanding domestic CO2 reduction target. But some industry sectors have already flagged up serious concerns about lack of transparency and apparently inequitable allocations - and ongoing work on the Department for Trade and Industry's energy projections could yet force a major redrafting.

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