Defra announced 29 June 2006, details of UK proposals for the next period of the European Union's Emissions Trading Scheme (EU ETS). The proposal outlines the contribution business needs to make to help tackle climate change and save 8M/t of carbon each year. Defra is proposing to allocate 238M allowances/pa during the second phase of ETS, which will run between 2008-2012, compared to 245/M allowances/pa under the current phase of the scheme. This announcement will put the UK on course to achieve a 16.2% reduction in carbon dioxide emissions by 2010. The Defra press release also announced the creation of a new joint Defra/DTI Environmental Transformation Fund. The fund will help to reduce carbon emissions by investing in renewable energies and other green technologies.
