Friday 11 March 2005

The UK government has today announced that it will be backing down on its battle with the E U Commission after it's plans to increase the amount of emissions that businesses can produce under the EU Emissions Trading Scheme, were rejected. However the government has said it will forge ahead with plans to take the EU Commission to court over the issue.

Andrew Lee, Director of Campaigns for WWF, said: "We welcome the government's move to go back to the previous proposal and this provides a great opportunity to get back on track to meet its 1997 manifesto commitment to reduce carbon dioxide emissions by 20 per cent by 2010. The government should seize this opportunity rather than wasting time and money in taking the EU Commission to court.

"The EU Emissions Trading Scheme (ETS) is the most cost-effective mechanism to reduce carbon dioxide emissions. If the government's legal challenge is successful, extra emissions will have to be reduced through other measures such as taxation and regulation, which will cost industry more in years to come.

"It is now crucial that in considering plans for the UK's participation in the second phase of the EU ETS, which comes into force in 2008, the government does not repeat the same mistakes again."