Shipping to partake in CO2 trading

The European Commission is expected to include the shipping industry in the carbon dioxide (CO2) emissions trading scheme later this decade, along with other industries.

In a speech to the Conference of National Parliaments of the EU and the European Parliament in London on Monday, Commissioner for Environment Stavros Dimas said that from 2012 the new emissions trading scheme must include all greenhouse gases and all sectors, including aviation, maritime transport and forestry.

The EU emissions trading scheme began on January 1, 2005 and so far an estimated 230 million allowances have been traded with a financial value of over EUR 4 bln.

The emissions trading scheme gives companies permits to emit a certain level of carbon dioxide but these permits can be traded.

It currently includes heavy industry sectors such as power, steel and cement. Chemicals and aluminium are also likely to be included in the next phase.

The Commission had already decided in September 27 to include aviation, which accounts for 3% of emissions, in the EU emission trading scheme.

According to the most recent official figures, for 2003 greenhouse gas emissions in the EU25 are down by 5.5% from their level in 1990.

Dimas said that the EU was on course to meet its Kyoto protocol targets by the 2012 deadline and that the European Council is exploring further reductions of around 15-30% by 2020.

The annual climate conference starts in Montreal at the beginning of next week.