CO2 Trade Still Needs Some Extra Lessons

The first year for the CO2 emissions trading scheme in the European Union passed and Quirin Schiermeier draws the lessons learned for Nature online (15.5.2006). Europe's major industry (9400 companies were engaged) emitted 44 million tonnes of CO2 less than they were allowed. How? Well, possibly the granted emissions allowances per company were higher that needed. Hence, there has been a surplus of allowances on the market and the cost per emitted ton of CO2 dropped from a high of 31 euros to 12 euros. "Critics say that the allocation of emission rights must now be significantly tightened for the 2008-2012 trade period, to avoid a market meltdown," writes Schiermeier.