Carbon dioxide (CO2) emissions from plants participating in the EU Emissions Trading Scheme (ETS) increased by 0.3% in 2006, indicating that manufacturers are working to become more environmentally-friendly. The 0.3% figure is adjusted for the entry of new installations into the scheme last year. It compares with the 3% growth in EU gross domestic product recorded last year. All but 1% of installations surrendered emission allowances equal to their verified 2006 emissions by the 1 May deadline. The ETS scheme ensures that greenhouse gas emissions from the energy & industry sectors covered are cut at least cost to the economy, environment commissioner Stavros Dimas said. "It is very encouraging to see that the mechanics of the EU ETS are working well & that the vast majority of installations have complied with their obligation to surrender allowances." he said. "While emissions will not necessarily fall in each year of a trading period, it is important to note that the rise last year was very limited and far below the rate of economic growth." He said he is convinced that the strict caps the Commission is putting on allowances for the second phase of the ETS starting next year will contribute further to cuts in emissions. Last year was the middle year of the first EU ETS trading period, which started with the scheme's launch on 1 January 2005 and ends on 31 December this year. The second trading period will begin on 1 January 2008 and run for five years, coinciding with the period during which the Kyoto Protocol targets must be met. The total amount of verified emissions from EU ETS installations in the EU-25 last year was 2.026 billion tonnes of CO2, 0.8 per cent higher than the 2.010 billion tonnes recorded in 2005. About 300 additional installations participated in the scheme since 2005. Of the 10,605 installations participating in the scheme last year, 380 failed to meet a 1 May 2007 deadline to surrender a number of allowances equal to their verified emissions
